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Tougher Quarter for Forrester
US technology specialist Forrester Research has reported a 2% rise in revenue in its Research arm to $50.3m from $49.2m in the prior year period. However, the firm's total revenues dropped to $68.5m from $69.8m as a result of an 11% decline in its Advisory Services division.
 On a GAAP basis, total Q3 net income was $10.4m, compared with net income of $5.7m for the same period last year; but on a pro forma basis, net income was $5.8m down from $7.9m in Q3 2011.
For the nine month period ended September 30, 2012 total revenues were $217.9m, compared with $209.0m for the same period last year, Research revenues increased from $141.1m to $151.1m, and Advisory Services revenue dropped from $67.8m to $66.7m.
Chairman and CEO George Colony (pictured) comments: 'Forrester met our revenue guidance and exceeded operating margin and earnings per share for the third quarter. However, we expect the softness we experienced in our consulting business in the third quarter, related to both lower-than-expected productivity and the macroeconomic environment, to continue and therefore are reducing revenue and EPS guidance for the year.'
Forrester is now anticipating full year 2012 revenue of approximately $290 - 294m, down from the previously announced $295 - 300m.
Colony also announced that he will be assuming day-to-day management of the company following the resignation of COO Charles Rutstein.
Separately, CFO Mike Doyle said that the Board currently believes the company's share price is undervalued, and that Forrester plans to repurchase $100m of stock by the end of 2013 in a bid to 'build long-term shareholder value without compromising our ability to invest in our business'.
Web site: www.forrester.com .
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