Forrester preparing for growth despite Q3 sales dip
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US— Forrester Research is gearing up for growth next year, despite a 9% fall in third-quarter revenue to $53.9m and a 7% decline in operating income to $7.9m.
Research services revenue was down 4% to $38.9m, but advisory and other services fared worse with sales down 22% to $15m.
However chairman and CEO George Colony said the firm’s results “exceeded our guidance”. “Given the sluggish economy, we are pleased with Forrester’s third-quarter performance,” he said.
Nine-month revenue was down 3% to $172m and the company expects further sales declines of 3%-8% and 3%-5% for the fourth quarter and full-year.
But Colony told analysts Forrester was “preparing for growth in 2010” as the US economy starts to stabilise and with Europe set to follow suit, albeit some six months behind.
Chief financial officer Michael Doyle said clients were showing cautious optimism about their prospects. Coming out of recession, he said the company would look to boost its sales resources, though he warned this may put pressure on margins.
