Greenfield Revenues Down but Figures 'Show Turnaround'

Second quarter results for online survey solutions provider Greenfield Online show net revenue down to $24.5m from $26.3m in Q2 2005, and operating income down to $3.7m (15.1% of revenue) from $4.5m (17.2%). However, the firm's 'turnaround' is said to be underway and some forecasts have been raised.

Net income for the second quarter of 2006 (3 months to June 30th) was $2.3m, as compared with $19.1m for the prior year period, but the 2005 figure included a $15.7m tax allowance release. Cash flow from operations was down from $6.7m to $5.1m, although adjusted EBITDA, a non-GAAP financial measure which excludes restructuring charges, was $7.3m or 29.8% of revenues, vs. $7.6m (28.7%) the previous year.

President and CEO Albert Angrisani said the overall business performed well from a revenue, gross profit and adjusted EBITDA perspective for the second consecutive quarter. 'I believe this is an encouraging sign that the turnaround is underway. In addition, the comparison shopping segment reported yet another positive quarter of revenue growth and profitability.' However, he added that in the second quarter, 'the European Survey Solutions business experienced pricing pressure from a more competitive marketplace which has resulted in slower than anticipated revenue growth and weak July bookings. I believe it will take several quarters to reverse this situation and return to acceptable growth rates.'

The firm's backlog of signed contracts is unchanged from the previous quarter at $19m and bid volume for the three months was down from c.$155m to c.$125m. The proportion of revenue from full service work was down from 27% in the first quarter to 42% in the second, with a corresponding rise in Sample Only work to 58%. 14% more projects were completed in the second quarter, 2,896 for 477 clients, vs 2,536 projects for 461 clients in the first quarter.

The company has raised some of its annual guidance forecasts for the full fiscal year 2006, since May 8th. Total revenue is still predicted in the range $88.0 to $95.0m, but gross margins are now forecast between 70% - 72% (from $68% - 70%) and non-GAAP adjusted EBITDA at 21% - 23% (previously 19% - 21%).

Greenfield announced last month (DRNO www.mrweb.com/drno/news5761.htm ) that it was splitting the two business of its European subsidiary Ciao, creating separate companies for comparison shopping and online surveys. Greenfield is online at www.greenfield.com , where detailed financial results can be found.

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

• Greenfield Online, Inc.
• All news
• MrWeb info