IMS Health Holdings, which sells technology services and prescribing and clinical data to physicians, posted a dip in revenue but a substantial jump in profitability in its first quarter this year.
Revenue fell 2% to $632 million for the period ended March 31 this year compared with the same quarter last year. But net income jumped to $298 million, compared with a net loss of $24 million.
IMS Health is headquartered in Danbury, Conn., but operates globally. Revenue actually increased 7% year over year when adjusted for the negative impact of foreign currency exchanges, according to the earnings report.
The company attributed a portion of its first-quarter loss last year to “higher equity compensation expense and other one-time expenses “related to its initial public offering.
IMS Health went public with a bang last April. Its IPO raised a net of $987 million after expenses, according to its full-year results reported in February. The company reported a loss of $189 million in 2014 on revenue of $2.6 billion.
The company also announced it would indefinitely reinvest abroad its non-U.S. earnings, “no longer accruing taxes at the higher U.S. tax rates.” The move would result in “a $256 million noncash income tax benefit from a one-time reduction” in its deferred tax liability, according to a news release.