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Iron Mountain Marches On

Iron Mountain met analysts' estimates in its annual results today, buoyed by strong performance in storage and services, although the vendor is still struggling with its digital archiving business. (See Iron Mountain Reports Q4 and 2006 Top 10: On the Hot Seat.)

Speaking on a conference call this morning, CEO Richard Reese explained that there is plenty of work to do in this area. "The challenge is the large digital archive business -- that is still losing money," he said, adding that the firm is developing a new version of its back-end digital archive. "We will continue to invest in that -- it will have much lower operating costs," he explained.

Despite these issues, Iron Mountain posted a solid set of results, with revenues of $2.35 billion, up from just over $2 billion in the previous year, and in line with analyst estimates. The vendor also claimed $610 million in fourth-quarter revenues, an increase of 13 percent from the same period last year. Analysts had estimated quarterly revenues of just over $605 million.

For the quarter, Iron Mountain posted net income of $37 million, or 18 cents per share, up from $26 million, or 13 cents per share, in the year-ago period. Analysts had estimated earnings of 17 cents per share.

The CEO attributed this performance largely to the vendor's physical storage business, which grew 11 percent year-over-year in Q4. Services were also strong, growing 16 percent over the same period.

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