Daily Research News Online no. 5854 - 'Reinvented' Harris 'Achieves Every Major Goal'

'Reinvented' Harris 'Achieves Every Major Goal'

August 22 2006

Harris Interactive has released its financial results for the fiscal fourth quarter (Q4) and fiscal year ended June 30, 2006. Revenue for Q4 was up 11% year-on-year to a record $60.0m and for the fiscal year up 10% to $216m. Net earnings leapt almost 500% to $9.5m or $0.15 per share.

Listen to Greg Novak on the results and the 'reinvention', via DRNO's EarPiece podcast:

US and European revenue for the fourth quarter were each up 11%, US to $46.8m and European to $13.2m. Global Internet revenue also rose 11%, as did US Internet revenue, to $33.9m and $30.2m respectively; European Internet revenue was $3.7m, up a more modest 7%. Internet revenue makes up 64% of the total in the US and still only 28% in Europe.

Operating income was up 47% to $4.2m or 7.0% of revenue, and net income for the quarter increased 189% to $3.3m, or $0.05 per diluted share. Sales bookings for the quarter however were flat at $47.9m (they were $47.8m in Q4 2005).

President and CEO Gregory T. Novak described the quarter as 'the capstone to a very good year for Harris Interactive. We reinvented this Company and along the way achieved every major goal we communicated a year ago. We made progress addressing our challenges in the UK, recommitted ourselves to Internet growth and are now actively working to expand on that good performance in the coming year.'

Revenue totals for the full fiscal year 2006 are as follows:

global revenue up 10% to $216.0m from $197.0m.
US revenue up 13% to $170.1m
European revenue down 1% to $46.0m
Unfavorable foreign currency exchange rates had a negative $1.8m impact on revenue for the fiscal year.

Internet revenues grew 14-15% in each of the following categories:

Global Internet revenue up to $125.4m
US Internet revenue $112.2m
European Internet revenue was $13.2m.

For the full fiscal year, Internet revenue comprised approximately 58% of consolidated revenue, 66% of US revenue and 29% of European revenue.

Operating income was $14.3m, or 6.6% of revenue, up 58% when compared with operating income of $9.0m, or 4.6% of revenue for the last fiscal year. Net income for the fiscal year was $9.5m or $0.15 per diluted share, up 498% when compared with net income of $1.6m (including a $3.0m mostly non-cash loss from discontinued operations), or $0.03 per diluted share for fiscal 2005. Total sales bookings for fiscal 2006 were $218.6m, up from the $184.1m of sales bookings reported in FY2005. The company says it remains essentially debt-free.

CFO Ronald E. Salluzzo says the company will discontinue its quarterly guidance, so as to concentrate on long-term objectives. Expected revenue for the first half of FY2007 is $108 - $113m; and for the full fiscal year 2007 $230 - $240m, generating net earnings of between $0.22 and $0.24 per fully diluted share.

Full details are on the web site at www.harrisinteractive.com .

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