Forrester Reports 2.5% Q1 Revenue Growth

Forrester Research has reported first quarter revenue growth of 2.5% to $56.4m, from $55m for the first quarter of last year. GAAP net income was halved but on a pro forma basis it was almost unchanged from Q1 2008.

On a GAAP basis, net income was $2.6m, or $0.11 per diluted share, compared with $5m, or $0.21 per diluted share, for the same period last year. Excluding items, earnings were $0.27 a share.

On a pro forma basis, net income was $6.3m, which excludes stock-based compensation of $2.2m, amortization of $656k of acquisition-related intangible assets, and $3.1m or reorganization costs resulting from the loss of about 50 jobs during the quarter. This compares with pro forma net income of $6.2m for the same period in 2008.

For the quarter, the research service business revenue rose 9% to $39m, from just under $36m in the same period last year.

For the second quarter, the company is forecasting earnings of $0.33 to $0.37 per share, excluding items, on revenue of $60m to $63m.

'As demonstrated by our first-quarter financial performance, we are weathering the current recession and managing the business accordingly,' stated Chairman of the Board and CEO George Colony.

Colony added that the 'current softness' in the market will result in a delayed impact on the firm's revenue later in the year. However, while the firm exceeded its revenue guidance for the first quarter, he said is reiterating its full-year guidance of $215m to $235m in revenues.

Shares of Forrester, whose competitors include Gartner and IDC, were up $4.20 at $25.81 this morning.

Web site: www.forrester.com .