European Results Dent Harris Revival

Harris Interactive has announced results for its fiscal third quarter 2006, ended March 31. Total revenue was $52.2m, up 3% on the same period a year previously. Strong US growth of 9% (revenue now $42.4m) was counterbalanced by poor figures for Europe, where revenue was down by $2.0m / 17% to $9.8m ($0.8m due to exchange rates).

Global Internet revenue for Q3 (ie the third fiscal quarter of 2006) was $31.2m, up 8% on a year ago. European Internet revenue was $3.2m, up 3% from a year previously. Internet revenue comprised 66% of US revenue (unchanged from a year ago) and 32% of European (up from 26%).

Operating income for the third fiscal quarter of 2006, which included $1.0m of severance and non-cash stock-based compensation expenses, was $4.1m, or 8% of revenue, up 274% when compared to operating income of $1.1m, or 2% of revenue, for the same period a year ago. Earnings per Share of $0.04 exceeded expectations on lower than expected revenue, and sales bookings exceeded $66m - a new quarterly record. The company remains confident of achieving $0.12 - $0.14 full-year EPS.

President and CEO Greg Novak comments: 'Despite lower than expected revenue, our improved management processes enabled us to more than triple our operating income. The improved discipline and visibility we've achieved in running our US business will now allow us to focus more attention on our two top priorities: growing consolidated revenue and to quickly take the steps needed to get UK sales and profitability moving in the right direction again.' Novak said the renewed focus on sales development and strategic selling, announced in September last year, 'has paid off by increasing our sales bookings while decreasing our selling costs to below 10% of revenue. We will now concentrate on replicating those same sales processes in the UK.'

The investor relations section of the company's web site is at www.harrisinteractive.com/ir .

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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