State Street Reports Third-quarter 2019 EPS of $1.42 Per Share; $1.51 Per Share Excluding Notable Items(a)

EXPENSE SAVINGS PROGRAM EXPECTED TO ACHIEVE $400 MILLION TARGET IN 2019 WITH $275 MILLION OF SAVINGS REALIZED YEAR-TO-DATE

NEW INVESTMENT SERVICING WINS TOTAL $1 TRILLION DURING QUARTER AND CONTINUED STRONG FRONT-TO-BACK PIPELINE

RETURNED APPROXIMATELY $690 MILLION OF CAPITAL TO SHAREHOLDERS IN SHARE REPURCHASES AND DIVIDENDS

Ron O'Hanley, President and Chief Executive Officer : "We are encouraged by the continued stabilization in servicing fees seen in the third quarter and believe the actions we've taken to date, including the upgrade of our client coverage program, improved client service results, and strengthened pricing discipline are having an impact. Despite an uncertain revenue environment, we saw sequential fee revenue growth in FX trading services in our Global Markets business and strong NII. Our strong performance under the 2019 CCAR stress test allowed us to increase our quarterly dividend by 11% from 2Q19 and boost our total capital return to shareholders. While our pre-tax margin and return on equity fell short of medium-term targets, we remain committed to our 2019 expense program and the expected realization of $400 million in savings by year end and are laser-focused on improving our financial performance by implementing additional ways to reignite revenue growth and generate additional expense reductions going forward."

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20191018005203/en/

FINANCIAL HIGHLIGHTS

(Table presents summary results, $ millions, except per share amounts, or where otherwise noted)

3Q19

2Q19

3Q18

 

% QoQ

 

% YoY

 

Income Statement:

 

 

 

 

 

 

 

 

Total fee revenue

$

2,259

 

$

2,260

 

$

2,318

 

 

%

 

(2.5

)%

 

Net interest income

644

 

613

 

672

 

 

5.1

 

 

(4.2

)

 

Total revenue

2,903

 

2,873

 

2,989

 

 

1.0

 

 

(2.9

)

 

Total expenses

2,180

 

2,154

 

2,091

 

 

1.2

 

 

4.3

 

 

Net income

583

 

587

 

764

 

 

(0.7

)

 

(23.7

)

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

Diluted earnings per share

$

1.42

 

$

1.42

 

$

1.87

 

 

%

 

(24.1

)%

 

 

 

 

 

 

 

 

 

 

Financial ratios and other metrics:

 

 

 

 

 

 

 

 

Return on average common equity

9.7

%

10.1

%

14.0

%

 

(40

)

bps

(430

)

bps

Pre-tax margin

24.8

 

25.0

 

29.9

 

 

(20

)

 

(510

)

 

Average total assets ($ billions)

$

223

 

$

222

 

$

221

 

 

0.8

%

 

0.9

%

 

Average total deposits ($ billions)

157

 

157

 

160

 

 

0.4

 

 

(1.5

)

 

AUC/A ($ billions)

32,899

 

32,754

 

33,996

 

 

0.4

 

 

(3.2

)

 

AUM ($ billions)

2,953

 

2,918

 

2,810

 

 

1.2

 

 

5.1

 

 

 

 

 

 

 

 

 

 

 

(a) See 3Q19 Highlights in this News Release for a listing of notable items. Results excluding notable items are a non-GAAP presentation. Please refer to the Addendum included with this News Release for an explanation and reconciliation of non-GAAP measures.

3Q19 HIGHLIGHTS
(all comparisons are to 3Q18, unless otherwise noted)

AUC/A and AUM

• Investment Servicing AUC/A as of quarter-end decreased 3% primarily due to a previously announced client transition, partially offset by higher end of period fixed income market levels.

• Investment Management AUM as of quarter-end increased 5% due to higher end of period market levels and net inflows of $59 billion, driven by institutional, cash and ETF inflows.

New Business

• Investment Servicing mandates announced in 3Q19 totaled $1.0 trillion with quarter-end servicing assets remaining to be installed in future periods of $1.2 trillion.

• Investment Management net inflows in 3Q19 of $13 billion driven by cash and ETF inflows.

Revenues

• Fee revenue decreased 3% reflecting lower servicing and management revenues, partially offset by CRD:

◦ Compared to 2Q19, fee revenue was flat reflecting higher servicing fees up 2%, management fees up 1%, and foreign exchange trading services revenues up 4%, offset by lower processing fees and seasonally lower securities finance revenue.

◦ On a standalone basis, CRD generated $85 million in 3Q19 fee revenues(b).

• Net interest income (NII) decreased 4% primarily due to lower long-end rates and MBS premium amortization, as well as mix shift away from non-interest bearing deposits.

• Compared to 2Q19, NII increased 5% primarily driven by episodic market-related benefits, higher client repo activity, and active deposit management, partially offset by lower long-end rates.

Notable Items

(Dollars in millions, except EPS amounts)

3Q19

2Q19

3Q18

Acquisition and restructuring costs (net)

$

27

 

$

12

 

$

 

Legal and related costs

18

 

 

 

Total notable items (pre-tax)

$

45

 

$

12

 

$

 

 

 

 

 

EPS impact

$

(0.09

)

$

(0.03

)

$

 

 

 

 

 

(b) See In This News Release for an explanation and reconciliation of CRD standalone and consolidated revenues and expenses.

Expenses

• Total expenses were up 4%, primarily reflecting the impact of CRD expenses and 3Q19 notable items:

◦ Excluding CRD expenses and notable items, total expenses were down 1% compared to 3Q18.

◦ Expense savings program announced in January 2019 achieved $275 million total savings year-to-date through resource discipline, process re-engineering and automation benefits.

◦ Savings from expense programs exceeded business investments in technology infrastructure.

• Total headcount increased 1%, driven by the impact of CRD, or down 2% excluding CRD, compared to 3Q18, primarily driven by productivity savings.

◦ 3Q19 saw the third sequential decline in total headcount, while strengthening client service through quality initiatives and automation.

◦ Year-to-date higher-cost location headcount reductions totaled over 2,700, exceeding the original target of 1,500 for FY 2019.

Capital

• Returned approximately $690 million(c) to shareholders in 3Q19, consisting of $500 million in common share repurchases and approximately $190 million in common share dividends.

◦ Declared 3Q19 quarterly common share dividend of $0.52 per share, an increase of 11% from the 2Q19 dividend.

• Estimated standardized Common Equity Tier 1 (CET1) of 11.3%, Tier 1 Leverage ratio of 7.4% and Supplementary Leverage Ratio (SLR) of 6.6% at quarter-end.

(c) Based on a capital return of $690 million and net income available to common shareholders for the quarter ended September 30, 2019, of $528 million, our total payout ratio was 131%.

MARKET DATA, AUC/A AND AUM

The tables below provide a summary of selected financial information, market indices and foreign exchange rates for the periods indicated as well as industry flow data for the indicated time periods.

(Dollars in billions, except market indices and foreign exchange rates)

3Q19

 

2Q19

 

3Q18

 

% QoQ

 

% YoY

 

 

 

 

 

 

 

 

 

 

Assets under Custody and/or Administration (AUC/A)(1) (2)

$

32,899

 

 

$

32,754

 

 

$

33,996

 

 

0.4

%

 

(3.2

)%

Assets under Management (AUM)(2)

2,953

 

 

2,918

 

 

$

2,810

 

 

1.2

 

 

5.1

 

 

 

 

 

 

 

 

 

 

 

Market Indices:(3)

 

 

 

 

 

 

 

 

 

S&P 500 daily average

2,958

 

 

2,882

 

 

2,850

 

 

2.6

 

 

3.8

 

S&P 500 EOP

2,977

 

 

2,942

 

 

2,914

 

 

1.2

 

 

2.2

 

MSCI EAFE daily average

1,882

 

 

1,888

 

 

1,964

 

 

(0.3

)

 

(4.2

)

MSCI EAFE EOP

1,889

 

 

1,922

 

 

1,974

 

 

(1.7

)

 

(4.3

)

MSCI Emerging Markets daily average

1,014

 

 

1,045

 

 

1,054

 

 

(3.0

)

 

(3.8

)

MSCI Emerging Markets EOP

1,001

 

 

1,055

 

 

1,048

 

 

(5.1

)

 

(4.5

)

Barclays Capital Global Aggregate Bond Index EOP

509

 

 

506

 

 

473

 

 

0.6

 

 

7.6

 

Foreign Exchange Volatility Indices:(3)

 

 

 

 

 

 

 

 

 

JPM G7 Volatility Index daily average

6.9

 

 

6.1

 

 

7.5

 

 

13.1

 

 

(8.0

)

JPM Emerging Market Volatility Index daily average

8.1

 

 

8.4

 

 

11.2

 

 

(3.6

)

 

(27.7

)

 

 

 

 

 

 

 

 

 

 

Average Foreign Exchange Rate:

 

 

 

 

 

 

 

 

 

Euro vs. USD

1.112

 

 

1.123

 

 

1.163

 

 

(1.0

)

 

(4.4

)

GBP vs. USD

1.233

 

 

1.285

 

 

1.303

 

 

(4.0

)

 

(5.4

)

(1) Includes assets under custody of $25,078 billion, $24,771 billion and $25,300 billion, as of 3Q19, 2Q19, and 3Q18, respectively.

(2) As of period-end.

(3) The index names listed in the table are service marks of their respective owners.

INDUSTRY FLOW DATA

(Dollars in billions)

3Q19

2Q19

1Q19

4Q18

3Q18

2Q18

1Q18

North America - ICI Market Data:(1)

 

 

Long Term Funds

$

(52.2

)

$

(39.7

)

$

41.7

 

$

(308.8

)

$

(50.4

)

$

(28.3

)

$

38.0

 

Money Market

224.5

 

137.0

 

54.0

 

187.9

 

35.8

 

(51.7

)

(52.2

)

ETF

90.6

 

65.4

 

45.8

 

105.0

 

87.2

 

55.8

 

62.8

 

Total ICI Flows

$

262.9

 

$

162.7

 

$

141.5

 

$

(15.9

)

$

72.6

 

$

(24.2

)

$

48.6

 

 

 

 

 

 

 

 

 

Europe - Broadridge Market Data:(2)

 

 

Long Term Funds

$

53.6

 

$

27.5

 

$

5.7

 

$

(171.4

)

$

(16.2

)

$

(24.9

)

$

160.5

 

Money Market

78.1

 

1.6

 

(9.0

)

62.4

 

(21.9

)

(17.8

)

(10.3

)

Total Broadridge Flows

$

131.7

 

$

29.1

 

$

(3.3

)

$

(109.0

)

$

(38.1

)

$

(42.7

)

$

150.2

 

(1) Industry data is provided for illustrative purposes only and is not intended to reflect the Company's or its clients' activity.

(2) 3Q19 data is on a rolling 3 month basis and includes June through August 2019 for EMEA (Copyright 2019 Broadridge Financial Solutions, Inc.)

INVESTMENT SERVICING AUC/A

The following table presents AUC/A information by product and financial instrument.

(Dollars in billions)

3Q19

2Q19

3Q18

% QoQ

% YoY

Assets Under Custody and/or Administration

 

 

 

 

 

By Product Classification:

 

 

 

 

 

Mutual funds

$

8,687

 

$

8,645

 

$

8,717

 

0.5

%

(0.3

)%

Collective funds, including ETFs

9,224

 

9,272

 

9,646

 

(0.5

)

(4.4

)

Pension products

6,817

 

6,542

 

6,807

 

4.2

 

0.1

 

Insurance and other products

8,171

 

8,295

 

8,826

 

(1.5

)

(7.4

)

Total Assets Under Custody and/or Administration

$

32,899

 

$

32,754

 

$

33,996

 

0.4

 

(3.2

)

By Financial Instrument:

 

 

 

 

 

Equities

$

18,243

 

$

18,504

 

$

20,070

 

(1.4

)

(9.1

)

Fixed-income

10,413

 

10,089

 

10,018

 

3.2

 

3.9

 

Short-term and other investments

4,243

 

4,161

 

3,908

 

2.0

 

8.6

 

Total Assets Under Custody and/or Administration

$

32,899

 

$

32,754

 

$

33,996

 

0.4

 

(3.2

)

INVESTMENT MANAGEMENT AUM

The following table presents 3Q19 activity in AUM by product category.

(Dollars in billions)

Equity

Fixed- Income

Cash

Multi-Asset Class Solutions

Alternative Investments(1)

 

Total

 

Beginning balance as of June 30, 2019(2)

$

1,841

 

$

450

 

$

319

 

$

155

 

$

153

 

 

$

2,918

 

 

 

 

 

 

 

 

 

Long-term institutional flows, net(3)

(13

)

(5

)

2

 

 

2

 

 

(14

)

ETF flows, net

3

 

3

 

(1

)

 

7

 

 

12

 

Cash fund flows, net

 

 

15

 

 

 

 

15

 

Total flows, net

$

(10

)

$

(2

)

$

16

 

$

 

$

9

 

 

$

13

 

 

 

 

 

 

 

 

 

Market appreciation/(depreciation)

11

 

14

 

2

 

3

 

10

 

 

40

 

Foreign exchange impact

(11

)

(3

)

(1

)

(1

)

(2

)

 

(18

)

Total market/foreign exchange impact

$

 

$

11

 

$

1

 

$

2

 

$

8

 

 

$

22

 

 

 

 

 

 

 

 

 

Ending balance as of September 30, 2019

$

1,831

 

$

459

 

$

336

 

$

157

 

$

170

 

 

$

2,953

 

(1) Includes real estate investment trusts, currency and commodities, including SPDR® Gold Shares ETF and SPDR® Long Dollar Gold Trust ETF. State Street is not the investment manager for the SPDR® Gold Shares ETF and the SPDR® Long Dollar Gold Trust ETF, but acts as the marketing agent.

(2) 2Q19 has been revised to reflect a reclassification of $14 billion in assets from Passive equity to Passive alternative assets.

(3) Amounts represent long-term portfolios, excluding ETFs.

REVENUE

(Dollars in millions)

3Q19

2Q19

3Q18

 

% QoQ

 

% YoY

 

Servicing fees

$

1,272

 

$

1,252

 

$

1,333

 

 

1.6

%

 

(4.6

)%

 

Management fees

445

 

441

 

474

 

 

0.9

 

 

(6.1

)

 

Foreign exchange trading services

284

 

273

 

288

 

 

4.0

 

 

(1.4

)

 

Securities finance revenue

116

 

126

 

128

 

 

(7.9

)

 

(9.4

)

 

Processing fees and other revenue

142

 

168

 

95

 

 

(15.5

)

 

nm

 

Total fee revenue

$

2,259

 

$

2,260

 

$

2,318

 

 

 

 

(2.5

)

 

 

 

 

 

 

 

 

 

 

Net interest income

644

 

613

 

672

 

 

5.1

 

 

(4.2

)

 

Gains (losses) related to investment securities, net

 

 

(1

)

 

nm

 

nm

 

Total Revenue

$

2,903

 

$

2,873

 

$

2,989

 

 

1.0

 

 

(2.9

)

 

 

 

 

 

 

 

 

 

 

Net interest margin (FTE)(d)

1.42

%

1.38

%

1.48

%

 

4

 

bps

(6

)

bps

Servicing fees decreased 5% compared to 3Q18 driven by the impact of challenging industry conditions including fee pressure. Servicing fees were up 2% compared to 2Q19 primarily due to higher average market levels and net new business.

Management fees decreased 6% compared to 3Q18 primarily reflecting the run rate impact of late 2018 outflows and mix changes away from higher fee products, partially offset by higher average U.S. equity market levels. Management fees increased 1% compared to 2Q19 primarily driven by higher average U.S. equity market levels, day count and inflows.

Foreign exchange trading services decreased 1% compared to 3Q18 due to lower market volatility, and increased 4% compared to 2Q19 primarily due to higher market volatility and FX volumes.

Securities finance decreased 9% compared to 3Q18 largely reflecting the 2H18 balance sheet optimization efforts and 8% compared to 2Q19 primarily due to the absence of 2Q19 seasonal activity.

Processing fees and other increased compared to 3Q18 largely reflecting CRD revenue contribution, which was acquired in 4Q18. Processing fees were down 15% compared to 2Q19 primarily driven by market-related adjustments and lower CRD revenue due to timing of new business and renewals. In 3Q19, CRD contributed $77 million of revenue(b).

Net interest income (NII) decreased 4% compared to 3Q18 primarily due to lower long-end rates and MBS premium amortization, as well as mix shift away from non-interest bearing deposits. NII increased 5% compared to 2Q19 primarily due to the episodic market-related benefits, higher client repo activity, and active deposit management, partially offset by lower long-end rates. Net interest margin (NIM)(d) decreased 6 basis points compared to 3Q18 due to lower NII, partially offset by a decrease in interest-earning assets. Compared to 2Q19, NIM increased 4 basis points driven by higher NII and a larger investment portfolio, partially offset by balance sheet growth.

(b) See In This News Release for an explanation and reconciliation of CRD standalone and consolidated revenues and expenses.

(d) NIM is presented on a fully taxable-equivalent (FTE) basis. Refer to the Addendum for reconciliations of our FTE-basis presentation.

EXPENSES

(Dollars in millions)

3Q19

2Q19

3Q18

 

% QoQ

 

% YoY

 

Compensation and employee benefits

$

1,083

 

$

1,084

 

$

1,103

 

 

(0.1

)%

 

(1.8

)%

 

Information systems and communications

376

 

365

 

332

 

 

3.0

 

 

13.3

 

 

Transaction processing services

254

 

245

 

248

 

 

3.7

 

 

2.4

 

 

Occupancy

113

 

115

 

110

 

 

(1.7

)

 

2.7

 

 

Acquisition and restructuring costs

27

 

12

 

 

 

125.0

 

 

nm

 

Amortization of other intangible assets

59

 

59

 

47

 

 

 

 

25.5

 

 

Other

268

 

274

 

251

 

 

(2.2

)

 

6.8

 

 

Total Expenses

$

2,180

 

$

2,154

 

$

2,091

 

 

1.2

 

 

4.3

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

19.2

%

18.1

%

14.5

%

 

110

 

bps

470

 

bps

Total expenses were up 4% from 3Q18 primarily reflecting notable items and CRD expenses. Total expenses increased 1% compared to 2Q19 driven by notable items and technology infrastructure investments. Excluding notable items and CRD expenses, total expenses were down 1% compared to 3Q18 and 2Q19.

Compensation and employee benefits decreased 2% compared to 3Q18 driven by savings from resource discipline and process re-engineering initiatives, partially offset by the impact of CRD. Compensation and employee benefits were flat compared to 2Q19.

Information systems and communications increased 13% compared to 3Q18 and 3% compared to 2Q19 largely reflecting technology infrastructure investments.

Transaction processing services increased 2% compared to 3Q18 and 4% compared to 2Q19 both primarily due to higher business volumes.

Occupancy increased 3% compared to 3Q18 primarily reflecting the expansion of lower-cost locations in 4Q18 and CRD. Occupancy expense was down 2% compared to 2Q19.

Amortization of other intangible assets increased 26% compared to 3Q18 primarily due to the CRD acquisition. Amortization of other intangible assets was flat compared to 2Q19.

Other expenses increased 7% compared to 3Q18 primarily reflecting higher notable legal and related expenses, partially offset by lower professional fees. Compared to 2Q19, other expenses decreased 2% due to lower professional services costs, partially offset by the higher legal and related expenses.

The effective tax rate in 3Q19 was 19.2% compared to 14.5% in 3Q18 and 18.1% in 2Q19. Compared to 3Q18, the effective tax rate increased primarily due to the absence of a 3Q18 adjustment to the estimated impact of 2017 tax legislation changes originally estimated in 4Q17. Compared to 2Q19, the effective tax rate increased due to the lesser impact of tax advantaged investments.

CAPITAL AND LIQUIDITY

The following table presents preliminary estimates of regulatory capital ratios for State Street Corporation.

September 30, 2019

3Q19

2Q19

3Q18

Basel III Standardized Estimated:

 

 

 

Common Equity Tier 1 ratio

11.3

%

11.5

%

13.0

%

Tier 1 capital ratio

14.7

 

14.9

 

16.4

 

Total capital ratio

15.3

 

15.5

 

17.2

 

 

 

 

 

Tier 1 leverage ratio

7.4

 

7.6

 

8.1

 

Supplementary leverage ratio

6.6

 

6.7

 

7.1

 

Standardized CET1, Tier 1 and Total Capital ratios as well as Tier 1 Leverage ratio and SLR were down compared to 3Q18 as a result of the timing of the CRD acquisition, and largely flat as compared to 2Q19.

Returned approximately $690 million to shareholders in 3Q19 consisting of $500 million in common share repurchases and approximately $190 million in common share dividends. Repurchased 9.4 million common shares in 3Q19 and declared 3Q19 quarterly common share dividend of $0.52 per share, an increase of 11% from the 2Q19 dividend.

Preliminary estimated average liquidity coverage ratio (LCR) for State Street Corporation of approximately 110% at quarter-end.

INVESTOR CONFERENCE CALL AND QUARTERLY WEBSITE DISCLOSURE

State Street will webcast an investor conference call today, Friday, October 18th, 2019, at 10:00 a.m. EST, available at http://investors.statestreet.com/. The conference call will also be available via telephone, at (866) 211-3118 inside the U.S. or at (647) 689-6605 outside of the U.S. The Conference ID# is 8237248.

Recorded replays of the conference call will be available on the website and by telephone at (800) 585-8367 or (416) 621-4642 beginning approximately two hours after the call's completion. The Conference ID# is 8237248.

The telephone replay will be available for approximately two weeks following the conference call. This News Release, presentation materials referred to on the conference call and additional financial information are available on State Street's website, at http://investors.statestreet.com/ under “Investor Relations--Investor News & Events" and under the title “Events and Presentations.”

State Street intends to publish updates to its public disclosure regarding regulatory capital, as required by the Basel III final rule, and the liquidity coverage ratio, on a quarterly basis on its website at http:// investors.statestreet.com/, under "Filings & Reports." Those updates will be published each quarter, during the period beginning after State Street's public announcement of its quarterly results of operations and ending on or prior to the due date under applicable bank regulatory requirements (i.e., ordinarily, ending no later than 60 days following year-end or 45 days following each other quarter-end, as applicable). For 3Q19, State Street expects to publish its updates during the period beginning today and ending on or about November 15, 2019.

State Street Corporation (NYSE: STT) is the world's leading provider of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $32.90 trillion in assets under custody and administration and $2.95 trillion* in assets under management as of September 30, 2019, State Street operates globally in more than 100 geographic markets and employs approximately 40,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

* Assets under management include the assets of the SPDR® Gold ETF and the SPDR® Long Dollar Gold Trust ETF (approximately $44 billion as of September 30, 2019), for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.

IN THIS NEWS RELEASE:

FORWARD LOOKING STATEMENTS

This News Release (and the conference call referenced herein) contains forward-looking statements within the meaning of United States securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of operations, strategies, the financial and market outlook, dividend and stock purchase programs, governmental and regulatory initiatives and developments, expense reduction programs, new client business, and the business environment. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “outlook,” “guidance,” “expect,” “priority,” “objective,” “intend,” “plan,” “forecast,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “will,” “trend,” “target,” “strategy” and “goal,” or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any time subsequent to the time this News Release is first issued.

Important factors that may affect future results and outcomes include, but are not limited to:

Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in our 2018 Annual Report on Form 10-K and our subsequent SEC filings. We encourage investors to read these filings, particularly the sections on risk factors, for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this News Release should not by relied on as representing our expectations or beliefs as of any time subsequent to the time this News Release is first issued, and we do not undertake efforts to revise those forward-looking statements to reflect events after that time.

Investor Contact: Ilene Fiszel Bieler +1 617/664-3477

Media Contact: Marc Hazelton +1 617/513-9439