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Revenues Plunge at ISG
Information Services Group (ISG), which owns outsourcing data and advisory firm TPI, has reported a 32% drop in first half revenues to $65.8m from $96.2m in the prior year period. Second quarter revenues fell $19.2m (or 38%) to $31.5m.
 In the first half of the year, revenues in the Americas decreased 29% as current and prospective clients deferred sourcing decisions. Revenues from international operations decreased 20% on a constant currency basis as clients, particularly in Western Europe, adopted a more cautious approach to implementing sourcing strategies. International revenues were down 35% year-over-year, including the impact of currency translation.
Reported operating income for the three months ended June 30, 2009 totalled $1.4m compared with $5.6m during the same 2008 period.
Excluding the impact of year-on-year currency translation on reported revenues and expenses, operating income decreased $3.0m or 70% from second quarter 2008 levels.
Excluding the impact of currency translation, EBITDA decreased $3.2m or 46% from second quarter 2008 levels. Q2 2009 operating income and EBITDA include $1.6m in severance charges offset partially by a $0.6m gain relating to vacation accrual adjustments, which have no prior year counterpart.
'Growth in the overall sourcing market remains sluggish in 2009 as clients continue to look for tactical short term cost reductions,' said Chairman and CEO Michael Connors. 'When corporate confidence and decision-making return to historical norms, ISG will be well positioned to support our clients' efforts to lower their costs and drive business improvements in their key technology and business operations.'
Connecticut-based ISG is run by a team including several former Nielsen / VNU executives and is on the web at www.informationsg.com , while Houston-based TPI is online at www.tpi.net .
Separately, ISG has appointed finance and strategic planning specialist Kalpana Raina to its Board of Directors. Raina is a Managing Partner at advisory firm 252 Solutions, prior to which, she spent 18 years with The Bank of New York Mellon Corp; most recently in London as EVP and Head of European Country Management and Corporate Banking.
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