ISG Reports $5.2m Loss

In the US, Information Services Group (ISG), the acquisition vehicle set up by former VNU boss Michael Connors, has reported an operating loss of $5.2m. Two recent acquisitions added $2.1m to the loss but also helped first quarter revenues to climb 17% to $40.7m (2010: $34.8m).

The acquisitions of Compass and STA Consulting contributed $11.0m in revenues, without which ISG would have seen further revenue depletion - not helped by a $2.7m decline in business from a major auto client.

ISG's operating loss of $5.2m, which compares to the $1.7m in operating income reported in the first quarter of 2010, was driven by lower revenue from its outsourcing advisory firm TPI, as well as acquisition-related and restructuring costs for the quarter.

Adjusted net loss was $0.1m, compared with $2.3m in the prior year's first quarter. Adjusted EBITDA showed a loss of $1.6m, compared with income of $4.9m in Q1 2010.

'We are very pleased with the progress we are making on integrating the two acquisitions, and feel positive about the momentum we are generating in the market place, winning over ten joint Compass/TPI client proposals with more in the pipeline,' Connors states. 'We also made progress against our cost synergy plan as we work to create the 'ISG One Platform' of global shared services. And we continue to have excellent success in Governance Services, re-signing two of our existing clients to multi-year agreements which will add incremental recurring revenue over the next three years.'

Web site: www.informationsg.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.