ISG Confident Despite Q1 Revenue Dip

Research and advisory firm Information Services Group (ISG) has announced results for the quarter ended March 31st. Revenues slid 5% to $48.2m (reported and constant currency), with a sharp rise in Europe (up 15% to $19.8m) more than counterbalanced by falls of 14-15% in the Americas and Asia Pacific.

Americas revenue was $24.4m and Asia Pac $4.0m at constant currency. Operating income was down from $2.6m to $1.0m, and fully diluted earnings per share (EPS) fell from $0.03 to nought. Adjusted net income was $1.3m, down 42% from Q1 2013, and adjusted EBITDA fell one third to $3.4m.

The company had a good year in 2013, with a 10% rise in revenues to $211.0m, and believes the Q1 declines reflect difficult comparatives and the timing of specific contracts - it has thereforereaffirmed its full-year revenue guidance as $215-$225m and forecasts adjusted EBITDA of $23-$26m.

ISG has had a busy couple of months, acquiring Australian b2b client research and benchmarking firm CCI Consulting Pty Ltd in April, and in March taking a 51% stake in a JV in Italy with public sector IT advisory specialist Convergent Technologies Partners S.p.A.

Company Chairman Michael Connors (pictured) says these two recent ventures 'expand our capabilities and presence in two areas of increasing importance to ISG: research and benchmarking in Asia Pacific and the public sector in Europe'. Both will contribute, he adds, to ISG's long-term strategy of 'building ISG into a premier global information-based services company for private and public sector enterprises'.

The company remains positive about its cash position and potential in this regard, and the Board has approved a new share repurchase authorization of up to $20m.

Web site: www.isg-one.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.