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FactSet Research Systems Anxious About Supreme Court's Rejection of RIM Appeal

Posted on: Wednesday, 25 January 2006, 00:00 CST

By Richard Lee, The Stamford Advocate, Conn.

Jan. 25--A U.S. Supreme Court rejection of an appeal by Research In Motion Ltd. over the BlackBerry wireless platform could spell the premature end to a recent agreement with Norwalk-based FactSet Research Systems Inc.

The court this week rejected an appeal by RIM, preserving a patent-infringement ruling that threatens to shut down BlackBerry e-mail service to up to 3 million of the company's U.S. customers.

Canada-based RIM was appealing a decision in a Richmond, Va., federal court that said the company infringed on wireless patents held by NTP Inc.

FactSet, global supplier of computer-based financial and economic data to the investment community, earlier this month announced that its securities market research tools are available on the BlackBerry.

FactSet said its clients using Blackberries on the road can access the same information and customized views available to customers in their offices.

"Our relationship with RIM enables FactSet to deliver fully customized, global market and company information in real time to the tool that our clients find most valuable when out of the office, their BlackBerry devices," said Kieran Kennedy, FactSet's director of investment banking and brokerage services.

Craig Kennison, senior research analyst at Robert W. Baird & Co. Inc., said he has been satisfied with the service.

"FactSet's wireless application provides easy access to stock quotes and press releases, eliminating a source of frustration when traveling," he said.

FactSet's sales staff has been marketing the service for several weeks and it has been well-received, Kennedy said.

Meanwhile, FactSet is awaiting the next move. "We're keeping an eye on it. The service is in place and working," Kennedy said, adding that it the contract with RIM did not require a major financial outlay. "It's more of a marketing agreement." The loss of BlackBerry service wouldn't have a major effect on FactSet, Kennedy said. "It's not a mission-critical feature. It's more of a hiccup, rather than a roadblock."

FactSet's profits wouldn't suffer at this point from a Blackberry shutdown, said John Neff, an analyst who follows FactSet with William Blair & Co. and does not own stock in the company.

"It's so new. I can't imagine problems with BlackBerry will have a material impact on FactSet," he said, noting that subscriptions to FactSet's research tools have been on the rise.

At the end of the 2005 fiscal year, FactSet had 1,576 subscribers, compared with 1,059 in 2004. Its net income climbed to $71.8 million in 2005, a 23.7 percent increase over 2004.

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Copyright (c) 2006, The Stamford Advocate, Conn.

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RIMM, RIM, FDS,

Source: The Stamford Advocate, Stamford, Conn.

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