Forrester Research Reports First-Quarter Financial Results
Forrester Research, Inc. (Nasdaq: FORR) today announced its first-quarter ended March 31, 2010 financial results.
First-Quarter Financial Performance
- Total revenues were $59.2 million, compared with $56.4 million for the first quarter of last year.
- On a GAAP-reported basis, Forrester reported net income of $5.8 million, or $0.25 per diluted share, compared with net income of $2.6 million, or $0.11 per diluted share, for the same period last year.
- On a pro forma basis, net income was $6.3 million, or $0.28 per diluted share, for the first quarter of 2010, which reflects a pro forma effective tax rate of 40 percent. Pro forma net income excludes stock-based compensation of $1.1 million, amortization of $0.9 million of acquisition-related intangible assets, $0.3 million of acquisition-related credits and net investment gains of $0.4 million. This compares with pro forma net income of $6.3 million, or $0.27 per diluted share, for the same period in 2009, which reflects a pro forma effective tax rate of 40 percent. Pro forma net income for the first quarter of 2009 excludes stock-based compensation of $2.2 million, amortization of $0.7 million of acquisition-related intangible assets and $3.1 million of reorganization costs.
A reconciliation of GAAP results to pro forma results may be found in the attached financial tables.
“On the heels of a good fourth quarter last year, we have followed with a strong first quarter this year,” said George F. Colony, Forrester’s chairman of the board and chief executive officer. “We finished in the upper end of our revenue guidance and surpassed our expectations for earnings and operating margin in the first quarter. Renewal rates have returned to pre-recession levels, deferred revenue is 8.5 percent higher than the same period one year ago, and we continue to expand our sales force to increase market penetration of our role-based products and services. We are off to a very good start in a year of economic recovery.”
Forrester is providing second-quarter 2010 financial guidance as follows:
Second-Quarter 2010 (GAAP):
- Total revenues of approximately $63.5 million to $66.5 million.
- Operating margin of approximately 15.5% to 17.5%.
- Other income of approximately $250,000.
- An effective tax rate of 40%.
- Diluted earnings per share of approximately $0.26 to $0.31.
Second-Quarter 2010 (Pro Forma):
Pro forma financial guidance for the second quarter of 2010 excludes estimated stock-based compensation of $1.0 million to $1.2 million, estimated amortization of acquisition-related intangible assets of approximately $0.9 million, and any gains or losses related to marketable and non-marketable investments.
- Pro forma operating margin of approximately 18.5% to 20.5%.
- Pro forma effective tax rate of 40%.
- Pro forma diluted earnings per share of approximately $0.32 to $0.36.
Forrester is reiterating full-year 2010 guidance as follows:
Full-Year 2010 (GAAP):
- Total revenues of approximately $240 million to $248 million.
- Operating margin of approximately 11% to 12%.
- Other income of approximately $1.0 million.
- An effective tax rate of 40%.
- Diluted earnings per share of approximately $0.72 to $0.78.
Full-Year 2010 (Pro Forma):
Pro forma financial guidance for full-year 2010 excludes estimated stock-based compensation expense of $5.0 million to $6.0 million, estimated amortization of acquisition-related intangible assets of approximately $3.6 million, and any gains or losses related to marketable and non-marketable investments.
- Pro forma operating margin of approximately 14.5% to 15.5%.
- Pro forma effective tax rate of 40%.
- Pro forma diluted earnings per share of approximately $0.97 to $ 1.03.