Forrester Research, Inc. (Nasdaq: FORR), a leading provider of research and analysis on emerging technologies, today announced financial results for the first quarter ended March 31, 2002, in line with its previous financial guidance.
First-Quarter Financial Performance
- Total revenues were $26.1 million, compared with $43.6 million for the first quarter of last year.
- Pro forma net income was $3.3 million, or $0.14 per diluted share. This compares with net income of $4.9 million, or $0.20 per diluted share, for the first quarter of fiscal year 2001. First-quarter 2002 pro forma net income and pro forma diluted earnings per share exclude a charge of $9.1 million related to the work force reduction announced in January and a write-down of $2.2 million related to impairments of non-marketable investments.
- Including these charges, Forrester reported a first-quarter net loss of $6.1 million or $0.26 per diluted share.
“In light of the difficult technology-spending environment, we were pleased to have met our first-quarter financial guidance,” said George F. Colony, chairman of the board and chief executive officer. “We believe that although a significant backlog of corporate technology projects increased during the quarter, budgets remained constrained as the sluggish economy persisted. During this economic period, we have taken aggressive steps to position our company and our products for success when companies begin to more actively evaluate their strategic needs for emerging technologies.”
WholeView Research Receives Positive Client Response
“As announced last quarter, the most significant step toward positioning us for our continued success was the introduction of WholeView Research,” continued Colony. “We’re happy to report that clients responded favorably to this comprehensive solution, which integrates a variety of Forrester research and service offerings. Through one integrated Web site, clients using WholeView have easy access to Forrester’s Technographics®, TechStrategy™, and TechRankings™ products.
“WholeView maps directly to our clients’ needs and the changing dynamics occurring in corporate technology decision-making,” continued Colony. “The IT, business strategy, and marketing functions, which once managed technology separately, now need to harmonize their efforts to achieve the highest possible return on technology. WholeView provides unified guidance on customer trends, business strategy, and technology planning, enabling Global 3,500 companies to get the most from their technology investments.”
Strong Participation At Q1 Events
Forrester held three first-quarter Events, including two sold-out Summits. The response to the company’s Automotive Summit in Los Angeles was very positive, as 99 percent of the attendees indicated that they would attend another Forrester Event. Forrester also hosted its first-ever Retail Summit which, based on attendee surveys, was one of the highest-ranked Events in Forrester history. The Forrester Technology Leadership Forum provided extensive insight into Web services, the primary emerging-technology concern for global companies.
Forrester’s second-quarter Events calendar includes two Forums and two Summits. Earlier this month, Forrester held the Leadership Forum Europe in Amsterdam, Netherlands, which focused on minimizing eBusiness strategy costs while developing technology innovations to drive growth. Forrester will host the Finance Forum in New York, featuring the key leaders in the financial services arena. In addition, Forrester will host two Summits: the Design Summit in Los Angeles and the Telecom Summit in Washington, D.C. For more information about these Events, please visit www.forrester.com.
“The global economic downturn has inhibited corporate technology spending, and we expect these conditions to continue affecting Forrester’s results for the short term,” stated Colony. “As the economy continues to improve and technology initiatives regain momentum, Forrester is positioned for a return to growth in the technology research market. Our balance sheet is strong, and our corporate structure and products are closely aligned with the needs of companies seeking to leverage technology change to drive their businesses.”
Forrester’ class=”newpage” target=”_blank”s guidance for the second quarter of and full-year 2002 continues to assume no significant improvement in technology spending and does not include the impact of the work force reduction and impairment charges mentioned previously.
- Total revenues of approximately $24.0 million to $26.0 million.
- Operating margin of approximately 10 percent to 12 percent.
- Pro forma diluted earnings per share of approximately $0.12 to $0.14.
- Total revenues of approximately $100.0 million to $105.0 million.
- Pro forma operating margin of approximately 10 percent to 12 percent.
- Pro forma diluted earnings per share of approximately $0.50 to $0.55.
- Diluted weighted average shares outstanding of approximately 24 million to 26 million.
- Pro forma 2002 effective tax rate of approximately 30 percent.