Forrester Reorganizes Sales Force And Reduces Workforce In Response To Changing Market Demands
Forrester Research, Inc. (Nasdaq: FORR), a leading provider of research and analysis on emerging technologies, today announced a reorganization related to its sales force and the elimination of 111 jobs or approximately 15% of its workforce worldwide. The company also announced anticipated second-quarter 2001 financial results.
“Today’s announcement is a two-pronged response to both the conditions and demands of the market,” said George F. Colony, Forrester’s chairman of the board and chief executive officer. “First, we’re reorganizing our sales team around a new vertical focus that addresses the need for increased specialization in a more complex market. Second, the workforce reduction is a move driven by a slower economy. Reducing our staff for the first time in Forrester’s 18-year history was a very difficult decision, and we deeply appreciate all that our employees, both past and present, have done in contributing to the company’s success.”
“We believe that our long-term market position and business model remain strong,” Colony continued. “Technology change will continue to present significant business challenges for Global 3,500 companies. Forrester’s charter of helping companies thrive on technology change represents a powerful and sustainable value proposition.”
Anticipated Second-Quarter Results
For the second quarter ended June 30, 2001, Forrester anticipates revenues of approximately $46.0 million and diluted EPS of approximately $0.24 per share. These expected results are consistent with the company’s previous guidance. For the current third quarter of 2001, the company expects to record a one-time charge in the range of $3.0 million to $4.0 million related to the reorganization and workforce reduction. On an annualized basis, associated savings are estimated to be approximately $15.0 million to $17.0 million.
The company expects to report its second-quarter results and plans to provide guidance for the second half of the year on July 18, 2001.
Conference Call Information
In conjunction with this news release, Forrester management will host a conference call for investors at 10 a.m. EDT today, July 12, 2001. The call will be broadcast live over the Internet. Investors interested in listening to the Webcast should log on to the “Investor Relations” section of the Forrester Web site, located at www.forrester.com, at least 15 minutes prior to the event’s broadcast. A Webcast replay will be available from July 12, 2001, through July 18, 2001.