Mixed Quarter for ISG

Information Services Group (ISG) has reported a 6% constant currency increase in second-quarter revenues. Reported revenue declined 3% to $53.4m, due to the strong dollar. Profit measures declined versus Q2 2014, with adjusted EBITDA down from $7.0m to $5.2m.

Founded in 2007 as an acquisition vehicle, ISG (Information Services Group) first bought outsourcing advisory firm TPI, then in 2011 acquired UK-based benchmarking and analytics specialist Compass and public sector advisor STA Consulting. Yesterday, the firm announced its acquisition of emerging technology trends analyst Saugatuck Technology.

During the second quarter, ISG's operating income was $2.0m, compared with $4.5m in the second quarter of 2014, and net income was $1.0m against $3.1m in the prior year period. Adjusted net income was down to $2.6m from $4.3m in Q2 2014.

For the first half of the year, the firm reported a 1% increase in revenue to $104.0m (up 9% on constant currency terms). Operating income for the period fell to $4.0m from $5.6m in H1 2014, and adjusted net income totalled $4.6m against $5.5m a year earlier. Adjusted EBITDA was $9.8m, compared with $10.4m in the first half of 2014.

Michael Connors (pictured), ISG Chairman and CEO, remarked: 'I am pleased with our first-half performance, with revenues climbing 9% in constant currency, driven by growth in all regions. Importantly, our recurring revenues continued to grow in the first half, with Managed Services Total Contract Value (TCV) sales increasing at the highest rate in two years'.

Web sites: www.isg-one.com .

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