Harris Interactive Reports First Quarter Revenue Drop

Harris Interactive has reported a drop in revenues for the first quarter fiscal 2007 of 2% to US$48 million. Figures for the quarter ended 30 September were affected by non-renewals, an aberrant number of no bids and outsourcing decisions that negatively affected revenue.

US revenues fell by 1% to US$36.6 million, whilst European revenues fell by 4% to US$11.4 million. Global Internet revenues rose by 3% to US$28.9 million, with US Internet revenue down 1% to US$24.4 million. European Internet revenues rose by 40% to US$4.5 million.

Net income for the quarter came in at US$0.9 million compared with US$1.2 million in the year earlier period. "Our internal processes effectively controlled our spending to match the lower revenue in the quarter," stated Ronald E. Salluzzo, CFO of Harris Interactive. "However, we made some deliberate exceptions, such as investing an additional $500,000 for panel development, U.S. sales resources and employee training which we felt were essential for our long-term growth."

Gregory T. Novak, president and CEO added, "Because the sales force has already been significantly increased, our sales momentum is building, and we've already seen a 12% lift in combined sales bookings for September and October. That increased sales capacity, as well as a strong ongoing demand for our services has pushed our proposal pipeline up to near record levels, making us confident that we will achieve full year estimates of approximately 10% revenue, and 45% earnings growth," Novak added.

The company has adjusted its first-half fiscal year 2007 expectations to revenue of between US$105 – US$110 million down slightly from its original first-half expectations of US$108 - US$113 million revenue. It has also adjusted its full fiscal year 2007 expectations for revenue of US$230 to US$240 million, generating net earnings of between US$0.21 and US$0.23 per diluted share.

The company is online at www.harrisinteractive.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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