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“IMS HEALTH achieved strong growth in the second quarter of 2001, particularly in North America,” said David M. Thomas, IMS HEALTH chairman and chief executive officer. “Our financial performance reflects our focus on the global execution of our operational plans, continued momentum of our core business and rapid uptake of a variety of new products that provide our customers with fast, actionable marketplace information.”

Second-Quarter Pro-Forma Results

For the second quarter of 2001, constant dollar revenue grew 16 percent over the year-earlier period, or 10 percent on a reported basis, to $334.3 million. Operating income totaled $107.2 million, up 24 percent over 2000 second-quarter results of $86.2 million. Net income grew 20 percent to $66.3 million, or $0.22 per share, compared with $55.5 million, or $0.19 per share, in the 2000 second quarter.

Six-Months Pro-Forma Results

For the six months ended June 30, 2001, revenue totaled $663.9 million, up 18 percent constant dollar and 12 percent on a reported basis from the first half of 2000. Operating income grew 25 percent to $203.7 million, compared with $163.0 million in the year-earlier period. Net income rose 17 percent to $122.2 million, or $0.41 per share, in the first half of 2001, compared with $104.5 million, or $0.35 per share, in the 2000 first half.

Core IMS HEALTH Results

Constant-dollar revenue for core IMS HEALTH operations (which excludes Cognizant Technology Solutions) grew 13 percent, or 6 percent on a reported basis to $293.9 million, in the 2001 second quarter. Operating income was up 23 percent for the quarter, to $98.3 million, compared with $80.2 million in the year-earlier quarter. Because IMS HEALTH, the principal operating unit of IMS HEALTH, conducts business in more than 100 countries, foreign exchange rates affect reported financial results. IMS HEALTH maintains a program to protect earnings per share from the impact of foreign currency fluctuations and shows both reported results and constant-dollar financial results, which eliminates the foreign currency impacts.

Cognizant Technology Solutions (CTS) Results

Cognizant Technology Solutions (CTS) (Nasdaq:CTSH) revenue rose 44 percent to $40.4 million for the second quarter of 2001. Operating income totaled $8.9 million, compared with $6.0 million in the year-earlier quarter, an increase of 47 percent. CTS specializes in e-business and application management and delivers high-quality, cost-effective full life-cycle solutions to complex software development and management problems. The CTS segment reflects IMS HEALTH’s 59 percent ownership of Cognizant Technology Solutions.

Share Repurchase Program

During the quarter, IMS HEALTH purchased 2.9 million shares of company stock at an average price of $27.59 per share for a total cost of $79.7 million. The shares were purchased under the company’s fifth share repurchase program, a 40 million share authorization by IMS HEALTH’s Board of Directors in July 2000. In the first six months of 2001, 6.4 million IMS HEALTH shares were purchased at an average price of $26.58 for a total cost of $171.0 million. Approximately 15 million shares of the shares authorized for repurchase under the current program have been repurchased.

IMS HEALTH is the world's leading provider of information solutions to the pharmaceutical and healthcare industries. With $1.3 billion in 2000 revenue, IMS HEALTH operates in more than 100 countries. IMS HEALTH is the largest pharmaceutical manufacturer information partner, with over 45 years of experience in the industry. Key products and services integral to customer day-to-day operations include market research for prescription and over-the-counter pharmaceutical products and sales management information to optimize sales force productivity. Additional information is available at www.imshealth.com.

 

  IMS HEALTH reports earnings per share $0.22 in 2001 third quarter - Financial Tables

 

July 16, 2001

This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although IMS HEALTH believes the expectations contained in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. This information may involve risks and uncertainties that could cause actual results of IMS HEALTH to differ materially from the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to (i) the risks associated with operating on a global basis, including fluctuations in the value of foreign currencies relative to the U.S. dollar, and the ability to successfully hedge such risks, (ii) to the extent IMS HEALTH seeks growth through acquisitions and joint ventures, the ability to identify, consummate and integrate acquisitions and ventures on satisfactory terms, (iii) the ability to develop new or advanced technologies and systems for its businesses on time and on a cost-effective basis, (iv) regulatory, legislative and enforcement initiatives, particularly in the areas of medical privacy and tax, (v) the use of estimates to calculate TriZetto’s contribution to IMS HEALTH’s financial results, and (vi) deterioration in economic conditions, particularly in the pharmaceutical, healthcare or other industries in which IMS HEALTH’s customers operate. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company made from time to time with the Securities and Exchange Commission.