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» Harris Interactive CEO Discusses F2Q2011 (Qtr End 12/31/2010) Results - Earnings Call Transcript
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 include 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 factor section of the company’s most recent Annual Report on Form 10-K. 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 call 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 with the add back of restructuring and other charges. These items are reconciled to GAAP financial measures in today’s press release and that reconciliation is also posted on the Investor Relations section of our website. I’d now like to turn today’s call over to Eric Narowski. Eric? Eric Narowski Thanks, Mike. Good afternoon everyone and thank you for joining us. Before I review the quarter, I’d like to remind you that while our Asian operations ceased in September 2011, the results of those operations are still included in our prior-year numbers. We expect that our Asian operations will be reclassified as discontinued operations no later than the fiscal quarter ended June 30, 2012 once all residual cash disbursements and receipts have been substantially completed.
Let me now give you a brief overview of our financial performance for Q2. Q2 revenue was $39.1 million, down 13% from $44.9 million for last year’s Q2. Foreign currency exchange rate differences did not have a meaningful impact on revenue. For comparative purposes, it is important to note that last year’s Q2 included $1.4 million revenue contribution from our Asia operations.Putting the revenue for the quarter into context, in local currency we saw a 4% decrease in US revenue mainly as a result of the revenue impact of the bookings decline in our US operations throughout the first half of fiscal 2012. A 1% increase in Canadian revenue essentially flat with last year’s Q2, a 48% decline in UK revenue in large part attributable to the expected impact of our restructuring actions to scale back our UK operations to focus on core markets and key solution areas, a 26% increase in France driven primarily by continued success in selling to new and existing clients across several industry sectors and a 3% decrease in Germany driven primarily by the revenue impact of the bookings decline in our German operations throughout the first half of fiscal 2012. Operating income for Q2 was $2.1 million, compared with $874,000 for last year’s Q2. Q2’s operating income included a credit and restructuring and other charges of $57,000 compared with $679,000 in restructuring and other charges for last year’s Q2. Net income for Q2 was $1.6 million or $0.03 per fully diluted share compared with $343,000 or $0.01 per fully diluted share for last fiscal year’s Q2. At December 31st, 2011, we had $14.1 million in cash and $8.4 million in outstanding debt and were in compliance with the financial covenants under our credit agreement. Cash provided by operations for Q2 was $3.3 million, consistent with $3.3 million for last year’s Q2. Non-GAAP adjusted EBITDA with restructuring and other charges added back was $3.8 million for the quarter compared with $3.7 million for last year’s Q2. Read the rest of this transcript for free on seekingalpha.com