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Greenfield Results 'Show Beginning of Turnaround'
Panel provider Greenfield Online has announced results for the first quarter (Q1) of 2006, ending March 31. The results show the beginnings of 'tangible results from our turnaround efforts' according to President and CEO Albert Angrisani - but also 'a considerable amount of hard work in front of us, particularly in North America'.
Revenue rose to $21.5m from $15.3m in the same quarter last year, but operating income was down from $2.5m to $1.3m and net income from $2.5m to $0.8m. Total gross profit was $16.0m or 74.2% of revenues for the first quarter of 2006, as compared with $10.8m or 71.0% of revenues in Q1 2005. The company was helped by a strong performance from its (non-survey) comparison shopping service.
Among the positive highlights of the quarter, Angrisani singles out expense control, 'especially in the areas of cost of revenues and general and administrative expenses. The new supply chain management program instituted in January helped us to deliver 74.2% gross margins. In addition, we further reduced North American general and administrative expenses by 6% of total company first quarter revenues.' Cash flow from operations was $5.0m for the first quarter of 2006 as compared to $2.3m for the prior year period.
Among other positives, Angrisani points to panels launched in Japan, South Korea and China. 'These panels are already producing revenue and laying important groundwork for what I believe will be a major Asian business for Greenfield / Ciao.'
The company has not adjusted its forecasts for the whole year, which remain total revenue $88.0 to $95.0m and gross margins 68% to 70%. Web sites are at www.greenfield.com and www.ciao-group.com for European subsidiary Ciao.
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