NORWALK, Conn., Mar 18, 2008 (PrimeNewswire via COMTEX News Network) -- FactSet Research Systems Inc. (NYSE:FDS), a leading provider of integrated financial information and analytical applications to the global investment community, today announced its results for the second quarter of fiscal 2008.

For the quarter ended February 29, 2008, revenues increased to $140.2 million, up 21% compared to the prior year period. Revenues in the prior year quarter were aided by $1.2 million of incremental non-subscription revenues from FactSet's Partner product. Excluding the incremental $1.2 million of non-subscription revenue, revenues were up 22% for the quarter ended February 29, 2008. To aid an investor's ability to make more precise interpretations of FactSet's financial results, a supplementary schedule is presented on page 9 of this press release that summarizes non-subscription revenues. As a reminder, non-subscription revenues are not included in the calculation of FactSet's annual subscription value ("ASV"). ASV at any given point in time represents the forward-looking revenues for the next 12 months from all annual subscription services currently being supplied to clients.

Income from operations for the second quarter rose to $43.2 million from $37.8 million in the same period of fiscal 2007. Net income advanced to $29.5 million as compared to net income of $26.5 million a year ago. Diluted earnings per share increased to $0.59, up from $0.52 in the same period of fiscal 2007.

Included in the second quarter was a pre-tax charge of $2.4 million related to an increase in the estimate of the number of performance-based stock options that will vest in August 2008. During the second quarter, FactSet estimated that it was probable the Company would achieve ASV and diluted earnings per share growth of at least 20% on a compounded annual basis for the two years ended August 31, 2008. This reflects a higher performance level than previously estimated and accordingly increased the number of options that is estimated to vest at the end of fiscal 2008. This change in estimate reduced diluted earnings per share by $0.03 and decreased operating margins by 180 basis points from 32.6% to 30.8%.

GAAP financial measures including operating income, net income and diluted earnings per share have been adjusted to report non-GAAP financial measures that exclude the $2.4 million incremental charge related to performance-based options. Non-GAAP operating income for the quarter was $45.7 million, up 21%. Non-GAAP net income advanced 17% to $31.1 million and non-GAAP diluted earnings per share increased 19% to $0.62. The growth rates of non-GAAP net income and non-GAAP earnings per share were adversely impacted by a 20% decline in other income to $1.4 million for the quarter ended February 29, 2008.