FactSet Research Systems Earnings Call Nuggets: FactSet Workstation and Acquisitions Analysis

FactSet Research Systems, Inc. (NYSE:FDS) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

FactSet Workstation

Shlomo Rosenbaum – Stifel Nicolaus: Can you just, Peter, provide some color on the strong net adds, client adds and user adds and just kind of contrast that with the ASV growth which was strong sequentially but from a seasonal aspect, was kind of the lowest year-over-year ASV that was – or your lowest amount that was added in the last three years. I’m trying to get to the nature of the new ASV and the new users. Are these people that are actually potentially buying pieces at the FactSet workstation or are they buying maybe StreetAccount standalone in certain firms that are really just Bloomberg firms that may never sign up with the FactSet workstation?

Philip A. Hadley – Chairman and CEO: Shlomo, it’s Phil. I’ll take that question. I guess when I look at our – the public information that we provided for you, as an analyst, it’s important for you to look at. Certainly, I’ve always emphasized gaining share in total ASV, gaining share in feeds and clients is always important and I think we had a very strong quarter when it came to gaining share in the marketplace. I think when I was looking at the data in what we think as our traditional FactSet business, we gained share and had a higher win rate than we’ve had in prior quarters. Just to clarify, one of the points you made, last year’s quarter included $11.5 million or somewhere about that in acquisition ASVs. So, on a year-over-year basis, this was a much better quarter than last year. And then I would also go on to throw at that that it’s important to say that the mix this year was more in our traditional business the way you think of terminals in the buy and sell-side.

Shlomo Rosenbaum – Stifel Nicolaus: So you had say more in the traditional terminals that people who might be starting off in a low dollar value that might be coming up later as a potential cross-sell?

Michael D. Frankenfield – EVP and Director of Global Sales: We wouldn’t count anybody in the web products. So anybody who is subscribing to a StreetAccount fee isn’t in our seat count. It gets counted in total ASV, but not in as far as seat gains. These are core workstations that clients are – relationships that we have greater than 24,000 and then ASV as the total number…

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