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Harris Revenues Rise Again
Harris Interactive(r) has released its financial results for the second quarter of fiscal 2005. Consolidated revenue and organic revenue both rose strongly (by 51% and 9% respectively), but high costs combined with a one-time payment to outgoing Chairman Gordon Black led to a decline in operating income.
Sales bookings, which do not include Wirthlin, rose to a record $46.3m, up 16% on last year. Chairman and CEO Robert E. Knapp says there is clear evidence that the company's investment in sales is beginning to pay off, but admits that 'we got ahead of ourselves with other costs, and now will focus on improving our margins in the second half of the fiscal year'.
Fiscal second quarter revenue of $54.4m includes $13.9m from Wirthlin and $1.1m from Novatris, and repsresents an increase of 51% versus the same period a year ago ($36.1m). Organic revenue, not including revenue from Novatris (acquired in March 2004) and Wirthlin (acquired in September 2004), was $39.4m, up 9% from last year.
Global Internet revenue, including $1.1m from Wirthlin and $1.0m from Novatris, was $25.9m, up 29% from the $20.0m a year ago. For the quarter, Internet revenue comprised 48% of global revenue, and 59% of the U.S. revenue.
Operating income for the quarter was $2.3m, which includes $1.2m from Wirthlin and zero income from Novatris, compared with operating income of $3.1m reported last year. The Company recorded a one-time cost of $0.8m to reflect payment obligations to Dr. Gordon S. Black, former chairman of Harris Interactive, under the terms of his employment agreement which expired December 31, 2004. Net income for the quarter was $1.4m, including one-time after-tax costs of $0.5m for Dr. Black's severance. Earnings per share for the quarter were $0.02 per fully diluted share, including $0.01 of one-time costs for Dr. Black, compared with $2.2m, or $0.04 per share, reported in the second quarter of fiscal 2004.
Harris Interactive expects revenue for the full fiscal year of between $205 and $210m, including $54 to $55m for the fiscal third quarter; and full fiscal year earnings per share from $0.15 to $0.17. These are of course forward-looking statements and results depend on market conditions / may be affected by unforeseen circumstances.
The company is online at www.harrisinteractive.com
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