Cuts Ahead after Mixed Year for Forrester

US-based technology specialist Forrester Research has reported annual revenue up six percent to $202.9m for its Research arm (from $191.5m in 2011). However, its Advisory services business declined two percent to $89.9m, and the firm is planning to make 30 staff redundant.

Similarly, Forrester reported a 3% rise in fourth quarter research revenues to $51.8m, but a 4% decrease in revenue for Advisory services and other business to $23.2m. Overall for the group, total revenues were $75.1m in the fourth quarter of 2012, compared with $74.7m in Q4 2011.

On a GAAP basis, total Q4 net income was $4.7m, compared with net income of $8.9m in the fourth quarter of 2011; while on a pro forma basis, net income was $6.4m, down from $9.2m in the prior year period.

For the full year 2012, total revenues increased to $292.9m from $283.6m in 2011, while on a GAAP basis, net income rose to $26.0m from $23.0m in the prior year. The most recent figure includes a $5.5m deferred tax benefit resulting from the settlement of a tax audit at one of the company's foreign subsidiaries. During the year, total operating expenses increased to $262.2m from $246.6m in 2011.

Chairman and CEO George Colony (pictured) comments: 'While our sales performance in 2012 will manifest itself in dampened revenue growth in 2013, we are aggressively taking action to correct what we believe were specific, one-time issues. Our brand remains strong as evidenced by our stable client retention rates, and our market opportunity is large.'

As part of this 'action', Forrester is 'streamlining' some support functions, in a bid to get its costs more in line with projected revenue in 2013. This will involve the loss of an estimated 2.5% of its workforce, and approximately $1.5m to $1.8m of severance and related costs in the first quarter of 2013.

For this first quarter, Forrester is anticipating total revenues of c.$66.0m to $69.0m.

www.forrester.com .

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

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