ISG Reports 25% Drop in Q1 Revenues

Information Services Group (ISG), which owns outsourcing data and advisory firm TPI, has reported a 25% drop in Q1 revenues from $45.6m in 2008 to $34.3m this year. This corresponds to a decrease of 17% before the impact of currency translation.

Revenues in the Americas declined 26% for the quarter as current and prospective clients deferred sourcing decisions in the face of the continuing economic downturn.

Reported operating income for the three months ended March 31, 2009 totaled $2.1m compared with $3.9m during the same period last year. Excluding the impact of year-on-year currency translation on revenues and expenses, operating income decreased 40% from Q1 2008 levels.

First quarter 2009 earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $4.4m, compared with Q1 2008 EBITDA of $7.0m. Excluding the impact of currency translation, EBITDA decreased $1.9m, or 30%, from first quarter 2008 levels.

'Sourcing strategies remain a compelling business case with a strong ROI for our clients,' stated Chairman and CEO Michael Connors. 'When corporate confidence and decision-making returns we believe our global leadership, data driven products and services and our robust geographic footprint will provide a unique platform to support our clients' efforts to lower their costs and drive business improvements in their key technology and business operations.'

Former VNU/Nielsen executive Connors and other industry veterans, launched ISG in 2006 with almost $260m in funds. In 2007 the firm acquired sourcing advisory firm TPI, which supplies data, research, and knowledge to help clients evaluate their outsourcing strategies.

Web sites: www.informationsg.com and www.tpi.net .

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