Morningstar saw a 12.2-percent drop in net income on 13.9-percent rise in revenue. But for employees and the company the earnings change reflected some good news. That included higher sales commissions as sales improved and the company began restoring suspended employees benefits, including partially reinstating matches to employee contributions to the 401(k) plan in the United States. And margins declined largely because of a decision to increase employee bonuses. Net income dipped to $18 million in the most recently ended quarter, down from $20.5 million a year earlier. Revenue for the second quarter was $136.1 million, up from $119.5 million. CEO Joe Mansueto said that organic revenue slightly and that was the first time it had increased in nearly two years.

Sales commissions rose by $2.5 million, partly because of increased sales, but also because under a new commission plan the entire expense is recognized in the quarter instead of over the life of a client contract. However, healthcare benefits were $1.4 million higher because of what Morningstar termed unusually high health claims with those costs up $1.4 million. Operating margins fell to 20.3 percent from 27.3 percent, but Mansueto said that was mainly because of the increase bonuses, which followed substantial reductions in 2009. Bonus expense increased by $5.4 million.

In the company’s two business segments, revenue in Investment Information was $109 million, up 11.5 percent with higher revenue software and data product lines more than offsetting the loss of $5.4 million equity research revenue from the discontinued Global Analyst Research Settlement. Investment Management revenue hit $27.1 million, up $5.3 million. The Investment Management segment include subscriptions to Principia, Advisor Workstation and Morningstar Direct licenses along with advertising sales on Morningstar.com, Morningstar Direct and Equity Research. On the product side, Principia subscriptions fell 9.5 percent to 34,715 while Advisor Workstation licenses rose slightly to 154,226.