Forrester Hits Target but Research Revenue Dips

Technology specialist Forrester Research has met its revenue guidance for Q3, with revenue up 1.6% year-on-year to $69.6m. However, revenues from its majority Research division fell 1% to $49.8m.

For the group as a whole, third quarter net income dropped to $2.1m from $10.4m the previous year, partly because the 2012 figure was boosted by a $5.5m deferred tax benefit.

Chairman and CEO George Colony commented: 'Forrester met its revenue guidance and exceeded operating margin and earnings per share for the third quarter. We continue a deliberate, yearlong process to improve how we operate to better serve our clients and take advantage of emerging growth opportunities. While our recovery remains a work in progress, we are seeing positive signs in some areas of the business.'

In the nine month period ended September 30th 2013, total revenues rose 0.5% to $219.2m, compared with $217.9m for the same period last year, while net income fell to $10.1m from $21.3m. Forrester is anticipating fourth quarter revenues in the range of $75.5m to $78.5m, and for the fiscal year 2013, between $295.0m and $298.0m.

Earlier in the year, the company announced it would be 'streamlining' some support functions with the loss of an estimated 2.5% of its workforce. As part of this process, it recently put in place what it describes as a 'unified global research business', which is supported by the promotion of two execs: thirteen-year company veteran Dennis van Lingen to Chief Product Officer, and Cliff Condon, most recently VP/Global Director of Events, to Chief Research Officer.

Web site: www.forrester.com .