Harris Interactive (HPOL)
Q4 2010 Earnings Call
August 19, 2010, 5:00 PM ET
Michael Burns - VP IR & External Reporting
Kimberly Till - President, CEO
Eric Narowski - interim CFO, CAO, SVP and Global Controller
Steve Kohl - Mangrove Capital
Jacques Soenens - Great Gable
Previous Statements by HPOL
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Good day, ladies and gentlemen, and thank you for standing by and welcome to the fourth quarter and full year fiscal 2010 Harris Interactive earnings conference call. At this time, all participants are in a listen-only mode. Later we'll conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions)
As a reminder, this conference may be recorded. Now I'll turn the call over to Mr. Michael Burns. Sir, please go ahead.
Thank you. Good afternoon and thank you for joining us to discuss Harris Interactive's fourth quarter and full year fiscal 2010 financial results. With me today are Kimberly Till, our President and Chief Executive Officer, and Eric Narowski, our Interim Chief Financial Officer.
The format for today's call will include formal remarks by both Kimberly and Eric on the state of the business and our performance for both the fourth quarter and full fiscal year. After the formal remarks, Kimberly and Eric will be available for questions.
A webcast replay of this entire call will be accessible via the Investor Relations section of our corporate website later this evening and will be archived there for at least 30 days. However, no telephone replay of this call will be provided. We will post a transcript of this call as soon as we can after the call.
We would like to take this opportunity to remind you that certain statements made during this conference call are forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995.
These statements includes beliefs, predictions and expectations related to the company's future financial performance, other business and operating metrics, as well as statements regarding the company's future plans and operations.
They involve a number of risks, known and unknown, that could cause actual results, performance and/or achievements of the company to be materially different from the beliefs, predictions and expectations discussed on this call.
Factors that could cause the company's results to materially differ from the forward-looking statements made today and which are incorporated by reference herein are more fully described in today's press release, as well as the company's SEC filings, particularly under the Risk Factors section of the company's most recent annual report on Form 10-K as updated quarterly in our quarterly reports of Form 10-Q to reflect additional material risks.
You are urged to consider these factors carefully in evaluating such forward-looking statements and are cautioned not to place undue reliance on them. The forward-looking statements are only made as of the date of this presentation and the company undertakes no obligation to publicly update them to reflect subsequent events or circumstances.
We also will be discussing non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA with the add-back of the restructuring and other charges. These items are reconciled to GAAP financial measures in today's press release and are posted on the Investor Relations section of our website.
I'd now like to turn today's call over to Harris Interactive's President and Chief Executive Officer, Kimberly Till. Kimberly?
Thank you, Mike. Good afternoon, everyone, and thank you for joining us and for your interest in Harris Interactive. On today's call I'd like to cover two main areas. First, I'll provide an overview of our financial results for fiscal year 2010 including Q4 and highlight some of the key accomplishments we achieved during this fiscal year.
Second, after Eric delivers his remarks on our financial results, I'll provide an update on where we are on our roadmap for the future and our priorities for fiscal year 2011.
Now let's turn to our Q4 and fiscal 2010 results. Financial highlights include consolidated revenue for Q4 was $43.6 million, essentially even with the $43.5 million for last year's Q4. For the full year, consolidated revenue was $168.4 million, down 9% from fiscal 2009. Foreign currency exchange rate differences had a mutual impact on both Q4 and the full fiscal year results as compared with the same periods last year.
Even though revenue declined from fiscal 2009, it is important to note that despite this decline we improved our adjusted EBITDA margin with the add-back of restructuring and other charges from $6.9 million, or 3.7% of revenue, in fiscal 2009 to $8.9 million, or 5.3% of revenue, in fiscal 2010.
The revenue decline was contained in the first half of fiscal 2010 as consolidated revenue in local currency for the second half of the year was even with the second half of fiscal 2009.
Our consolidated bookings for Q4 were up 5% compared with Q4 of last year excluding foreign currency exchange rate differences. This growth was driven primarily by increased bookings in the US, UK and France.
Operating income for Q4 was $186,000, improved from a $58,000 loss in last year's Q4. For the full year we had an operating loss of $523,000 compared with an operating loss of $56.4 million for fiscal year 2009. So from an operating standpoint, we have essentially achieved breakeven performance on a global basis in fiscal 2010. In fiscal 2011 we plan to achieve revenue and profit growth and I'll discuss this more later.