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Forrester Sets Sights Low Despite Q4 Growth
Forrester Research has reported revenues of $62.9m for the fourth quarter, up from $58.2m the previous year, while for the year ended December 31, 2008, total revenues increased to $240.9m from $212.1m a year before.
However, the firm is projecting a decline in revenues for the full year 2009, with a forecast of between $215m and $235m, and first quarter revenues of approximately $52m to $56m or $0.15 to $0.19 a share. This news sent shares tumbling 14% to their lowest in about four years as analysts had been expecting an earnings prediction of $0.27 on revenue of $59.1m.
'The recession caused a slowdown in our business toward the end of 2008,' explained CEO and Chairman of the Board, George Colony. 'The market conditions, however, did not prevent us from remaining profitable and achieving our EPS targets for the year. This is due in part to our role-based strategy, which resulted in a relatively strong retention of clients despite the tough economy.'
In Q4, net income was $9.2m or $0.39 per diluted share, compared with net income of $5.6m or $0.24 for the same period last year. For the full year, net income was $29.2m or $1.24 per diluted share for 2008, compared with net income of $18.9m or $0.80 per diluted share for 2007.
Earlier in the week, the firm announced it would be shedding approximately 50 jobs or an estimated 5% of its workforce worldwide in response to the ailing economy. With relation to severance and benefits costs, the company anticipates that it will incur pre-tax expenses of approximately $2.5m to $3m in the first quarter of 2009, and it is also evaluating associated facilities-related costs.
'We are grateful for the contributions of all of our employees over the past year,' said Colony. 'Forrester has lived through tough economic times before, and we are confident that with our strategy and our current offerings, we are well poised to successfully deliver what our clients need today and in the long term.'
Web site: www.forrester.com .
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