Forrester sees Q3 revenues dip 2% but research grows
US — Forrester Research has posted total revenues of $68.5m for the third quarter of 2012, compared with $69.8m for the third quarter of last year. Research revenues increased 2%, and advisory services and other revenue decreased 11% compared with the third quarter of last year.
Forrester says the decline in advisory services and other revenue during the third quarter 2012 is due to both a planned shift of a number of Forrester Events from being held during the current quarter to being held during the fourth quarter and a decrease in advisory services revenue.
The company said that net income for the period was $10.4m, compared with net income of $5.7m for the same period last year. This includes a $5.5m deferred tax benefit resulting from the settlement of a foreign tax audit.
Despite the decline, Forrester says that total revenues were $217.9m for the first nine months of the year, compared with $209m for the same period last year.
George F Colony (pictured), Forrester’s chairman and chief executive officer, said: “Forrester met our revenue guidance and exceeded operating margin and earnings per share for the third quarter. However, we expect the softness we experienced in our consulting business in the third quarter, related to both lower-than-expected productivity and the macroeconomic environment, to continue.
“We continue to see lingering dislocation from the ambitious research initiatives and aggressive changes to the sales organisation put in place earlier in the year — productivity gains are taking longer than expected to materialise, and attrition is hindering the delivery of consulting services,” added Mike Doyle, Forrester’s chief financial officer.
Forrester also announced the resignation of Charles Rutstein as chief operating officer and a member of the board of directors, effective immediately. The position of chief operating officer will not be filled.