Despite the recession, the IT research firm reported some good earnings for its fiscal 2008.
For the full year, Forrester net income was $29.2 million, compared with $18.9 million last year; on revenues of $240.9 million, up from $212.1 million reported last year.
However, the firm is projecting a decline in revenues in 2009, with a forecast of between $215 million and $235 million. “That’s assuming the 2009 plays out as Q4 2008, and as it relates to cash flow,” said Forrester CFO Mike Doyle.
“The recession caused a slowdown in our business toward the end of 2008,’ said Forrester CEO George Colony. ‘The market conditions, however, did not prevent us from remaining profitable and achieving our EPS targets for the year. This is due in part to our role-based strategy, which resulted in a relatively strong retention of clients despite the tough economy.”
Earlier in the week, the firm announced it would be laying off approximately 50 jobs or about 5% of its worldwide workforce in response to the ailing economy.
Forrester sees “soft” Events business amid cuts in travel budgets
“As you might expect, the events business has been softer than it has been historically. That’s largely tied to people’s travel budgets being down,” adds Forrester CFO Charles Rustein.
… But growing research business
“The overall syndicated business, which includes the research, the core research product itself, as well as the leadership boards product, as well as some of the data products, as you saw in the results, are growing faster than the company overall,” said Rustein.