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Internet Revenues Fuel Growth at Harris Interactive
Harris Interactive(r) has released results for the third quarter of fiscal 2004, showing revenue of $35.4m for the quarter, 10% up on the same period the previous year. Worldwide sales bookings rose above $40m for the first time, with a sharp rise in Internet-based revenue (42%) more than compensating for an 18% fall elsewhere.
CEO and Vice Chairman Robert E. Knapp says the sales momentum 'has continued into April, and we expect another excellent performance for bookings for the fourth quarter as a whole'.
Internet-based revenue grew 42% to $21.7 million and is now 61% of the company's total (previously 48%), while 'traditional' revenue declined 18% to $13.7 million from $16.8 million a year ago. The different speed of conversion to Internet research across the Atlantic is evident from the fact that HI Europe Internet revenue for the quarter was $0.9 million, 14% of the European revenue total and similar to the previous year. President and COO Gregory T. Novak believes that 'European Internet revenue will grow at a pace similar to the historical growth of US Internet revenue'. US Internet-based revenue for the quarter was $20.5 million, or 76% of the total US revenue.
Pre-tax income for the quarter was $2.6 million, or $0.05 per share, the same as Q3 of fiscal 2003. The figures reflect non-recurring charges during the quarter including hiring of additional sales and project staff to maintain growth and consolidation of some UK back-office operations.
In accordance with GAAP requirements, the Company recorded an income tax provision of $997,000 for the third fiscal quarter. That provision, a non-cash expense, produced after-tax net earnings of $1.6 million or $0.03 per diluted share. A tax provision was not booked in Q3 of fiscal 2003, thereby preventing a comparison of net income with a year ago.
Harris Interactive reports Novatris integration 'well underway and on schedule' with the entire one-million member database merged into the Harris Interactive panel (see DRNO 4th March '04, www.mrweb.com/drno2k/news2974.htm ).
Knapp says the company expects fiscal fourth quarter revenue, including Novatris, in the range of $41 to $43 million, with pre-tax income of between $0.10 and $0.12 per share, and revenue for the full fiscal year of $146 to $148 million.
Harris Interactive's web site is at www.harrisinteractive.com
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