Iron Mountain Has Tight Grip on Growth
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Iron Mountain reported $749 million in revenue for the first quarter of 2008, an 18 percent jump compared to its first quarter of 2007, with company executives noting strong growth across both physical and digital storage segments.
Net income for the first quarter was $33 million for the data protection and storage service provider, reflecting a 16 cents per share increase. The company's stock responded well to today's late morning news, jumping 10.7 percent to $30.41 by mid-afternoon.
CEO Richard Reese, who plans to step down next quarter after 27 years at the helm, said growth is strong for the 57-year-old data protection and storage provider. The earnings call was his 49th as corporate leader.
Bob Brennan, president and COO, will succeed Reese as of June. He came onboard in 2004 with Iron Mountain's (NYSE:IRM) acquisition of Connected Corp.
"It's business as usual as our performance is well on track," Reese told analysts during the earnings call. He described Iron Mountain's storage segment as the "large flywheel that keeps business rolling in good times and bad." This quarter marks the 77th consecutive quarter that the storage segments have experienced growth.
Storage revenue, which accounted for 50 percent of total revenue this quarter, had an eight percent growth rate. Iron Mountain expanded its digital storage services last year with the October 2007 acquisition of Stratify for $158 million in cash.
"It [storage] is the driver of our services," said Reese, adding that Iron Mountain's business focus remains unchanged.
"As I've told Bob [Brennan], we're not opportunity bound, we're execution bound," said Reese. "The future is marking one plus one equal four and we have that long term potential."