Profitable Year For Harris Interactive

Harris Interactive has released its financial results for the fiscal fourth quarter and for the full fiscal year ended June 30, 2003. Revenue for the full fiscal year was $130.6 million, up over 30% on the fiscal year 2002. Pre-tax earnings were $8.2 million or $0.15 per share, compared to a loss of $14.8 million, or ($0.32 per share) reported for fiscal year 2002.

For the full fiscal year, net income was $11.1 million or $0.20 per share on a fully diluted basis, including an income tax benefit from the last quarter of $3.0 million or $0.05 cents per share, or $0.05 per share tax benefit. EBITDA for the year was $13.3 million or 10% of revenue.

Revenue for the quarter was $35.7 million, up 11% on the fiscal third quarter and up 20% from the same period a year ago. Net income for the fiscal fourth quarter was $5.5 million, or $0.10 per share, including the $3.0 million, similar to the fiscal third quarter and up significantly compared to Q4 of fiscal 2002. EBITDA for the quarter was $3.9 million, or 11% of revenue, up 216% from the $1.2 million of EBITDA reported in the same period a year ago.

Internet-based revenue is rising rapidly, in absolute terms and as a percentage of all revenue: in Q4 it was $18.1 million, up 47% versus the same period last year, and up 18% versus last quarter. Internet-based revenue for fiscal year 2003 was $60.1 million, up 48% versus fiscal 2002. For fiscal 2003, Internet-based revenue made up 46% of the total revenue of the Company, up from 41% of the total in fiscal 2002.

The Company reported cash and marketable securities at June 30, 2003 of $39.1 million, up $3.8 million or 11% from $35.3 million reported at the end of the third quarter of fiscal 2003. The Company continues to remain essentially debt-free.

'The announcement today marks a wonderful achievement for the employees of Harris Interactive', declared Gordon S. Black, chairman and CEO of Harris Interactive. 'They have earned the leading position in the Internet-based market research industry and have proven the effectiveness of our business model by achieving our first full year of profitability... We will continue to focus on profitable organic and acquisitive growth as we expand into Western Europe and Asia and make our move into the top tier of global market research companies'.

Total revenue for US operations only for the fiscal year was $101 million, up 29% from $78 million US revenue reported in fiscal year 2002. Pre-tax net income for U.S. operations was $7.7 million or 8% of revenue. 59% of all US revenue came from Internet research, which Black points out is 'inherently more profitable than traditional research revenue' pushing up profitability for the US operations.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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