Forrester Research, Inc. (Nasdaq: FORR) today announced its first-quarter ended March 31, 2011 financial results.
First-Quarter Financial Performance
- Total revenues were $65.7 million, compared with $59.2 million for the first quarter of last year.
- On a GAAP basis, net income was $2.9 million, or $0.13 per diluted share, compared with net income of $5.8 million, or $0.25 per diluted share, for the same period last year.
- On a pro forma basis, net income was $4.8 million, or $0.21 per diluted share, for the first quarter of 2011, which reflects a pro forma effective tax rate of 40%. Pro forma net income excludes stock-based compensation of $1.4 million, amortization of $0.7 million of acquisition-related intangible assets, $1.5 million of duplicate lease costs, $0.4 million of acquisition costs, and net investment gains of $0.6 million. This compares with pro forma net income of $6.3 million, or $0.28 per diluted share, for the same period in 2010, which reflects a pro forma tax rate of 40%. Pro forma net income for the first quarter of 2010 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.
“Our first quarter financial performance was consistent with our expectations during a year of planned significant investments to support growth in our business,” said George F. Colony, Forrester's chairman of the board and chief executive officer. “In addition to delivering double-digit revenue growth in the first quarter, our key metrics remained strong.”
A reconciliation of GAAP results to pro forma results may be found in the attached financial tables.
Forrester is providing second-quarter 2011 financial guidance as follows:
Second-Quarter 2011 (GAAP):
Second-Quarter 2011 (Pro Forma):
- Total revenues of approximately $71.5 million to $74.5 million.
- Operating margin of approximately 11.0% to 13.0%.
- Other income, net of $100,000.
- An effective tax rate of 40%.
- Diluted earnings per share of approximately $0.21 to $0.25.
Pro forma financial guidance for the second quarter of 2011 excludes stock-based compensation expense of $1.1 million to $1.3 million, amortization of acquisition-related intangible assets of approximately $0.4 million, duplicate lease costs of approximately $1.5 million, and any acquisition costs and investment gains or losses.
- Pro forma operating margin of approximately 15.0% to 17.0%.
- Pro forma effective tax rate of 40%.
- Pro forma diluted earnings per share of approximately $0.29 to $0.33.
Our full-year 2011 guidance is as follows: