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Gartner Grows, Aims High for 2007
Technology researcher Gartner has reported fourth quarter and full year 2006 results with research and events divisions growing strongly, outpacing consulting. Overall earnings were $58.2m from a loss of $2.4m in 2005, and revenue rose 7% to $1.06 billion.
The company also made confident predictions for 2007, suggesting a rise in profit of between 21 and 28% and a target total revenue of $1,150-$1,177m, including $635-$645m for the research segment.
Total revenue for Q4 2006 increased 5% (vs Q4 2005) to $304m and research contract value was up 8% to $640m. Excluding currency effects, these figures were up 3% and 11% respectively. Normalized EBITDA for the quarter was $52m.
Total revenue for 2006 increased 7% to $1.06bn with normalized EBITDA up 48% from 2005, to $156m. In terms of the company's three main divisions or 'segments', research was the biggest contributor with revenue $152m for the 2006 fourth quarter (up 16%) and $571m for the year (up 9%); consulting revenue was down from $85m to $76m for the fourth quarter and up fractionally from $301m to $305m for the year; Events revenue was up 4% to $72m for the fourth quarter and up 12% to $169m for the year.
CEO Gene Hall says results show the success of its strategy to grow research business and improve margins, with the company delivering its twelfth consecutive quarter of contract value growth. 'We will further increase our momentum in 2007 with the continued enhancement of our products, improvements in client service, and continued growth of our sales organization.'
The company continues its share repurchase program with $17.2m spent during the fourth quarter in 2006 and a total of 5.4m shares bought back for $80.3m as of December 31, 2006, under the $100m program authorized in October 2005 which will now be replaced by a newly authorized $200m program, to be funded from cash flow from operations and possible borrowings under the Company's existing credit facility.
Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 3,700 associates, including 1,200 research analysts and consultants in 75 countries worldwide. Full details of the results are on the group's web site at www.gartner.com .
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