Forrester Research Reports Third-Quarter EPS of $.19

Forrester Research, Inc. FORR today announced its third-quarter ended September 30, 2010 financial results. The company also announced that its board of directors has approved a special cash dividend of $3 per share and authorized the repurchase of up to an additional $60 million of its common stock.

Third-Quarter Financial Performance

• Total revenues were $59.8 million, compared with $53.9 million for the third quarter of last year.
• On a GAAP-reported basis, Forrester reported net income of $3.7 million, or $0.16 per diluted share, compared with net income of $4.3 million, or $0.19 per diluted share, for the same period last year. The effective tax rate for the third quarter of 2010 was 41 percent, compared with 44 percent for the same period last year.
• On a pro forma basis, net income was $4.4 million, or $0.19 per diluted share, for the third quarter of 2010, which reflects a pro forma effective tax rate of 40 percent. Pro forma net income excludes stock-based compensation of $1.2 million, amortization of $0.9 million of acquisition-related intangible assets, $0.4 million of duplicate lease costs, and net investment gains of $1.4 million. This compares with pro forma net income of $6.2 million, or $0.27 per diluted share, for the same period in 2009, which reflects a pro forma effective tax rate of 40 percent. Pro forma net income for the third quarter of 2009 excludes stock-based compensation of $1.4 million, amortization of $0.4 million of acquisition-related intangible assets, and net investment losses of $0.7 million.