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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 $23.5million, or $1.25 per diluted share, compared to $20.2 million, or $1.03 perdiluted share, for the same period a year ago.
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To analyze results on a comparable basis to periods prior to theimplementation of SFAS No. 123R, the Company's management uses and isproviding adjusted financial results, including adjusted net income andearnings per diluted share, that exclude share-based compensation expense.Adjusted net income for the third quarter of fiscal year 2008 was $10.3million, 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 2008increased 25% to $0.55, from $0.44 in the same quarter of the prior year. Seethe "Reconciliation of Non-GAAP Financial Measures" section below for areconciliation of the Company's adjusted financial results with the resultspresented in accordance with generally accepted accounting principles("GAAP").
Frank Williams, Chairman and Chief Executive Officer of The Advisory BoardCompany, commented, "We are very pleased with our financial results for thequarter and for the calendar year. Our strong revenue performance and 16%growth in contract value illustrate the continued market attachment to ourmodel of providing proven best practices to address the complexity inherent intoday's healthcare and education fields. Across the quarter, we sawconsistent demand for our membership programs, driven by our cutting-edgeresearch agendas, heavy member utilization of program services and analyticaltools, and the continued impact we are having on our members' most importantissues. We continue to see a favorable market environment for renewals,cross-selling and new program launches, which are the primary growth driversof our business."
Williams added, "I am also pleased today to announce the launch of theUniversity Provost Program, our second program in the education vertical. TheUniversity Provost Program is a renewable membership program that providesbest practice research, peer networking, and tools to help Provosts bettermanage university operations, set institutional priorities, and measure andimprove performance. Provost feedback has been very positive about ourability to provide proven best practices to assist with today's difficultissues in higher education, such as the continued push to demonstrate academicoutcomes, increased competition for research funding, and the challenge offaculty recruitment and retention. As always, we have established a strongcharter membership for the program, including Duke University, College ofWilliam and Mary, Dartmouth College, New York University, University of NorthCarolina, University of California, Washington University, and University ofIllinois. The group has provided valuable input regarding the design of theprogram and its inaugural research agenda. With this initial cohort ofprogressive institutions, we have established a strong foundation for thefuture growth and success of the program."
Outlook for Calendar Year 2008
Although the Company operates on a fiscal year ending March 31, 2008, thefollowing statements summarize the Company's guidance for
