Gartner and Forrester See Revenues Fall

Technology research rivals Forrester Research and Gartner have both posted significant declines - of nine and ten per cent respectively - in their third quarter revenues.

At Forrester, revenue fell by 9% to $53.9m (2008 = $59.9m) and operating income dropped 7% to $7.9m.

For the first nine months of the year, revenue declined by 3% to $172m (2008 = $178.0m), and net income was $13.1m, compared with a net income of $20.1m for the same period last year. The company says it is anticipating further declines in sales of 3% to 8% for the fourth quarter and 3% to 5% for the full year.

'Given the sluggish economy, we are pleased with Forrester's third-quarter performance,' stated George Colony, Forrester's Chairman of the Board and CEO. 'Overall, our results exceeded our guidance.'

At Gartner, revenue dropped 10% to $267.5m for the period (2008 = $297.7m). Revenue from its research segment fell 7% to $185.7m; consulting was down 18% ($65.7m); and events revenue declined 9% ($16.0m). Net income of $20.1m in the third quarter was up about 7%.

For the nine month period, net income shrank to $57.2m (2008 = $70.2m), while revenue dropped 13% to $810.97m (2008 = $931.7m).

However, Gartner has reiterated its full-year revenue outlook of $1.1bn to $1.16bn.

'We expect our business trends to continue to improve in the fourth quarter and we expect to generate revenue, earnings and cash flow growth in 2010,' CEO Gene Hall said in a statement.

Web site: www.forrester.com and www.gartner.com .