French financial IT firm Linedata Services is reporting a 361.5% increase in net income for the first half of 2005 after it pocketed a EUR1.7m payment following its failure to acquire Canadian investment technology firm Financial Models Company (FMC).
Linedata originally bid for FMC in December 2004, but was forced to increase its offer in January after a competing bid from FMC president and chief executive Stamos Katotakis. The French firm negotiatated a $6m break fee if its offer was overturned and in Februrary US-based SS&C Technologies out-bid Linedata for control of FMC.
The EUR1.7m installment has boosted the group's first half net income over 300% to EUR5.7m, compared to EUR1.2m last year.
The firm is reporting first half revenues of EUR56.8m, 7.7% higher than last year's EUR52.7m. Linedata says operating income also increased sharply, rising 179.8% from EUR2.8m to EUR7.8m, due to its new streamlined cost structure.
Looking ahead the vendor says it aiming for growth of at least eight per cent in 2005 and has also confirmed its target IFRS operating margin of at least 17% for 2005 on the back of an expected increase in revenues in the second half of the year and a stable cost structure.