Greenfield Financial Results 'Not Acceptable'

Greenfield Online President Albert Angrisani has described the company's financial performance in 2005 as 'not acceptable', particularly in North America. He says the figures, which show an operating loss of $88.6m in the last quarter, reflect the company's problematic year, and vows to turn the company around.

The results are as follows (figures in brackets show the results for the same period a year ago).

Three months ending 31st December 2005
Net revenue $24.5m ($13.6m). This includes net revenue from Ciao (the company's European subsidiary) of $9.1m.
Net operating loss $88.6m (operating income $2.5m). This figure includes impairment and restructuring charges of $91.3m. Excluding these charges, operating income was $2.7m.
Gross profit $18.5m ($10m).
Cash flow from operations $7.6m ($3.3m).

Full year ending 31st December 2005
Net revenue $89.2m ($44.4m).
Net operating loss $65.5m (operating income $5.7m).
Cash flow from operations $23.8m ($5.3m).

For the full fiscal year 2006, the company expects total revenue of $88m to $95m.

Commenting on the results, Angrisani stated: 'Despite our improving performance in the fourth quarter, our full year's results are not exciting. In fact they are not acceptable to me, particularly in North America. But they're also not surprising. They reflect a problematic year for what had been a dynamic and successful company.'

He added: 'The business has to be turned around, and the way to do it is very clear: rationalise our expense structure and profit model; increase quality and customer satisfaction; build the North American panel to meet customer demand and innovate effective new technologies.'

Looking at the future, he stated: 'Based on our North American January sales numbers, lower than expected growth rates in Europe, as well as typical historical industry patterns, we do not yet have a high degree of confidence in our ability to gauge the short-term, quarter by quarter, revenue outlook of our overall business.'

In December, Angrisani announced a 'major rightsizing initiative', aimed at saving $7m in annual operating costs (www.mrweb.com/drno/news4960.htm ). The initiative involved the loss of 39 jobs and the closing of two offices. Angrisani joined the company in September 2005, stating that his aim was to 'use my experience as a successful turnaround manager to reinvigorate this company'.

The companies are online at www.Greenfield.com and www.ciao-group.com

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

• Ciao Ag
• All news