Investment Restricts ISG to Flat Quarter

Stamford, CT-based Information Services Group has announced revenue flat at $49.9m for the quarter ended March 31st. The profit measure adjusted EBITDA fell from $4.6m to $3.3m, reflecting investment in new opportunities - forecasts the year were raised.

The revenue figure was flat on a constant currency basis, down 1 percent on a reported basis, from $50.5m in Q1 2015. Revenues were $25.9m in the Americas (down 6% at constant currency), $19.0m in Europe (up 7%), and $5.0m (up 12%) in Asia Pacific.

The fall in adjusted EBITDA was in part due to the cost of a stock tender offer and in part the cost of investment in building new revenue streams. Chairman and CEO Michael P. Connors (pictured) said despite the fall in Americas revenue this quarter, solid growth was projected for the full year, and pointed to the firm's investment 'to address our immediate growth opportunities', with a strategy of 'hiring ahead of revenue'. Areas for expansion include ISG Research, Digital Advisory Services and Higher Education, and the launch of ISG Events.

Consequently the firm raised its revenue forecast for the year, to growth of 7 to 9 percent, and predicted a 10 to 15 rise in adjusted EBITDA.

ISG has also made another acquisition - that of Atlanta, GA-based change management firm TracePoint Consulting on April 29th, and Connors says the buy is part of the continued expansion of ISG Digital Advisory Services launched last year. TracePoint founder Randy Geoghagan and his team will continue to lead the OCM business.

ISG has more than 1,000 employees and operates in 21 countries, with a web site at 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.