Wolters Kluwer said the impact of May’s widespread system outage was not material to its results for the first quarter ended June 30. The company this week said otherwise it is too early to determine if there is any future impact from customer reaction to the malware attack that caused WK to take down its computer and phone systems with the severe outage lasting a week for some American customers.

Despite the lack of financial impact, it is clear that what has been perceived as a lack of communication from the company is still rankling users. CEO Nancy McKnistry said the company has been dealing with customer reaction.

“We have done a lot of outreach to customers,” McKinstry said during the earnings webcast for the half. She noted that most systems were back up quickly but added that systems were out the longest were in the United States and in tax.

But from a numbers viewpoint, it was a good half. The Tax and Accounting division reported operating profit of about $214.9 million, an increase of 40 percent over last year’s corresponding period. Revenue for the unit reached roughly $761.7 million, an increase of 10 percent over a year ago; up 6 percent in both constant currency and organically. The biggest boost to revenue came from the corporate tax business for which revenue was up 40 percent for the half.

Company-wide, after-tax profit for the most recently ended period dropped 15.6 percent to approximately $303 million. Revenue rose to about $2.45 billion in increase of 9 percent in last year’s first half.

Last modified on Wednesday, 31 July 2019
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