Harris Interactive Returns to Profit

After eighteen months of losses, Harris Interactive has posted net income of $1.3m on revenue of $44.6m for the quarter ending December 31.

Comparisons with the year earlier period are clouded by a massive goodwill impairment charge in the 2009 figure - a year ago the firm made a net loss of $65.6m on revenue of $50.7m. Nevertheless, the results seem to represent a corner turned for the firm.

Operating income for the firm's fiscal Q2 2010 was $0.6m (compared with an operating loss of $45.9m for the same period in 2009), and included $0.4m in restructuring and other charges, compared with $46.1m in goodwill impairment, restructuring and other charges for the same prior year period.

CEO Kimberly Till said that the results reflect the many initiatives the firm has put in place to grow bookings, rebuild revenue, and improve profitability, adding that this is the first time in seven quarters that Harris had recorded a profit.

Although consolidated revenue was down 12% compared with last year's second quarter, it was up by 15% from Q1 fiscal 2010.

Bookings for the second quarter of fiscal 2010 were $53.2m, compared with $48.6m for the prior year period.

The US division, which represents about 60% of total revenue, achieved an operating profit for the third consecutive quarter and saw bookings rise by 9% during the last quarter. While bookings also rose in Europe by 20%, they fell by 50% in Asia.

Till stated that overall, the improved results demonstrated her team was turning around the performance of the business, and that the firm was beginning to put in place plans to move towards a leadership position in the market research industry.

Harris is planning to develop products in the areas of social media, mobile platforms and linkage among different data sets and measures, which Till said should lead to higher margins.

The company is also planning to expand into new and related market information and insight segments, by leveraging its brand, technology expertise and other 'relevant competencies'.

Shares of the firm opened at $1.46 today, an increase of 11 cents.

Web site: 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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