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NEWS29 April 2010

Forrester reports ‘good start’ to year of economic recovery

Financials North America

US— Analyst firm Forrester has reported a 5% rise in first quarter revenue to $59.2m, a result CEO George Colony called “a very good start in a year of economic recovery”.

Both operating income and net income figures for the three months ended 31 March were more than double where they were a year ago, at $7.7m and $5.8m respectively. However, Q1 2009 had comparatively higher costs related to stock-based compensation and amortisation, as well as reorganisation charges connected to a 5% reduction in headcount. Looked at on a pro forma basis, net income for Q1 2010 was flat year-on-year.

Still, Colony said, the firm had surpassed its expectations for earnings and operating margin.

Returning to the sales figures, Forrester’s research services revenue was virtually flat at $39.4m, meaning the technology and market research agency’s growth came from sales of advisory and other services, which was up 14% to $19.8m.

Colony said: “On the heels of a good fourth quarter last year, we have followed with a strong first quarter this year… Renewal rates have returned to pre-recession level, deferred revenue is 8.5% higher than the same period a year ago, and we continue to expand our sales force to increase market penetration of our role-based products and services.”