The Advisory Board Company Reports Fiscal Year 2008 Third Quart...( Company Reports Quarterly Revenue ...),Health

Company Reports Quarterly Revenue of $55.9 Million and Contract Value

Growth of 16%

Issues Guidance for Calendar Year 2008; Announces New Program Launch

WASHINGTON, Feb. 5 /PRNewswire-FirstCall/ -- The Advisory Board Company (Nasdaq: ABCO) today announced financial results for the third quarter of its fiscal year ending March 31, 2008. Revenue for the quarter increased 15% to $55.9 million, from $48.6 million in the third quarter of fiscal 2007. Net income was $7.9 million, or $0.42 per diluted share, compared to $6.5 million, or $0.34 per diluted share, for the same period a year ago. Contract value grew 16% to $225.4 million as of December 31, 2007, up from $194.1 million as of December 31, 2006.

For the nine months ended December 31, 2007, revenue increased 15% to $161.0 million, from $139.5 million for the nine months ended December 31, 2006. Net income for the nine months ended December 31, 2007 was $23.5 million, or $1.25 per diluted share, compared to $20.2 million, or $1.03 per diluted share, for the same period a year ago.

To analyze results on a comparable basis to periods prior to the implementation of SFAS No. 123R, the Company's management uses and is providing adjusted financial results, including adjusted net income and earnings per diluted share, that exclude share-based compensation expense. Adjusted net income for the third quarter of fiscal year 2008 was $10.3 million, up from $8.5 million for the third quarter of fiscal year 2007. Adjusted earnings per diluted share for the third quarter of fiscal year 2008 increased 25% to $0.55, from $0.44 in the same quarter of the prior year. See the "Reconciliation of Non-GAAP Financial Measures" section below for a reconc
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