Skip navigation

Breaking News

Harris InteractiveŽ Reports Second Quarter Fiscal 2012 Results

16:00 EST Thursday, February 02, 2012

NEW YORK, Feb. 2, 2012 /PRNewswire/ -- Harris Interactive Inc. (NASDAQ: HPOL), a global custom market research firm, today announced its second quarter fiscal 2012 financial results.

(Logo: http://photos.prnewswire.com/prnh/20100518/NY06801LOGO )

Al Angrisani, Interim Chief Executive Officer of Harris Interactive, commented, "We made progress this quarter in improving our liquidity and profitability as a result of closely managing cash and our rightsizing efforts, both of which are core elements of our turnaround program. Looking ahead, we continue to face and seek to address sales challenges in certain areas of our business, in part by replacing low margin work with projects that yield appropriate margins. Addressing these challenges is not a quick or easy process and in the interim will put downward pressure on revenue."

Key Financial Statistics

USD in millions ? unaudited

For the Three Months Ended December 31,

For the Six Months Ended December 31,

2011

2010

2011

2010

Revenue (1)

$     39.1

$    44.9

$    77.4

$    82.0

Operating income (loss) (2)

$       2.1

$      0.9

$    (3.8)

$    (0.4)

Net income (loss)

$       1.6

$      0.3

$    (4.3)

$    (1.0)

Fully diluted net income (loss) per share

$     0.03

$    0.01

$  (0.08)

$  (0.02)

Adjusted EBITDA (3)

$       3.8

$      3.0

$    (0.2)

$      3.8

Adjusted EBITDA with add-back of restructuring and other charges (3)

$       3.8

$      3.7

$      6.6

$      4.5

Cash provided by (used in) operations

$       3.3

$      3.3

$      3.5

$      1.0

Bookings (4)

$     45.2

$    55.3

$    76.5

$    90.7

At December 31:

2011

2010

Cash and cash equivalents

$      14.1

$    13.5

Outstanding debt

$        8.4

$    13.2

Secured revenue (5)

$      45.1

$    53.7

(1) Amounts include the impact of foreign currency exchange rate differences. Excluding the impact of foreign currency exchange rate differences, revenue for the three and six months ended December 31, 2011 decreased by 12.8% and 6.6%, respectively, over the same prior year periods.

(2) Operating income for the three months ended December 31, 2011 included restructuring and other charges of $(0.1) million, compared with $0.7 million for the same prior year period. Operating income for the six months ended December 31, 2011 included restructuring and other charges of $6.8 million, compared with $0.7 million for the same prior year period.

(3) EBITDA is a non-GAAP measure. Adjusted EBITDA, also a non-GAAP measure, is EBITDA less stock-based compensation.

(4) Amounts include the impact of foreign currency exchange rate differences. Excluding the impact of foreign currency exchange rate differences, bookings for the three and six months ended December 31, 2011 decreased by 18.1% and 14.4%, respectively, over the same prior year periods. Bookings for the six months ended December 31, 2011 included negative bookings of $0.7 million for projects that were cancelled in connection with the closure of our Asia operations in September 2011.

(5) Amounts include the impact of foreign currency exchange rate differences. Excluding the impact of foreign currency exchange rate differences, secured revenue at December 31, 2011 decreased by 15.6% over the same prior year period.

Second Quarter Fiscal 2012 Results Conference Call and Webcast Access

Al Angrisani, Interim Chief Executive Officer, will host a conference call to discuss these results on Thursday, February 2, 2012, at 5:00 p.m. ET. Formal remarks will be followed by a question and answer session.

To access the conference call, please dial toll-free 877.303.9858 in the United States and Canada, or 408.337.0139 internationally.

A live webcast of the conference call also will be accessible via the Investor Relations section of our website at http://ir.harrisinteractive.com/, where an archived replay of the webcast will be available for 30 days following the call. No telephone replay of the conference call will be provided. This media release will be available under the Investor Relations section of our website at http://ir.harrisinteractive.com/ prior to the call.

Cautionary Note Regarding Forward Looking Statements

Certain statements in this press release and oral statements made by the Company on its conference call constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements include, among others, statements as to future economic performance, projections as to financial items, estimates, and plans and objectives for future operations, products and services. In some cases, you can identify forward-looking statements by terminology such as, "may", "should", "expects", "plans", "anticipates", "feel", "believes", "estimates", "predicts", "potential", "continue", "consider", "possibility", or the negative of these terms or other comparable terminology. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Such risks and uncertainties include, without limitation, risks detailed in the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K, as updated quarterly in our Quarterly Reports on Form 10-Q to reflect additional material risks. The Company has filed its reports on Forms 10-K and 10-Q with the Securities and Exchange Commission, and they are available under the Investor Relations section of our website at http://ir.harrisinteractive.com/. Risks and uncertainties also include the continued volatility of the global macroeconomic environment and its impact on the Company and its clients, the Company's ability to sustain and grow its revenue base, the Company's ability to maintain and improve cost efficient operations, the impact of reorganization, restructuring and related charges, quarterly variations in financial results, actions of competitors, the Company's ability to develop and maintain products and services attractive to the market, the Company's ability to remain in compliance with the financial covenants in its credit agreement, and uncertainties surrounding the Company's ability to regain compliance with certain NASDAQ listing requirements.

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 qualified in their entirety by this cautionary statement.

About Harris Interactive

Harris Interactive is one of the world's leading custom market research firms, leveraging research, technology, and business acumen to transform relevant insight into actionable foresight. Known widely for the Harris Poll and for pioneering innovative research methodologies, Harris offers expertise in a wide range of industries including health care, technology, public affairs, energy, telecommunications, financial services, insurance, media, retail, restaurant, and consumer package goods. Serving clients in more than 215 countries and territories through our North American and European offices and a network of independent market research firms, Harris specializes in delivering research solutions that help us - and our clients - stay ahead of what's next. For more information, please visit www.harrisinteractive.com.

HPOL ? E

HARRIS INTERACTIVE INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

(Unaudited)

December 31,

June 30,

2011

2011

Assets

  Cash and cash equivalents

$         14,053

$ 14,224

  Accounts receivable, net

24,001

26,480

  Unbilled receivables

5,882

7,580

  Prepaids and other current assets

3,808

3,619

  Deferred tax assets

523

306

Total current assets

48,267

52,209

  Property, plant and equipment, net

2,334

3,447

  Other intangibles, net

12,133

14,582

  Other assets

1,229

1,610

Total assets

$         63,963

$ 71,848

Liabilities and Stockholders' Equity

  Accounts payable

$           9,770

$  9,521

  Accrued expenses

19,979

21,249

  Current portion of long-term debt

4,794

4,794

  Deferred revenue

13,491

13,872

Total current liabilities

48,034

49,436

  Long-term debt

3,596

5,993

  Deferred tax liabilities

1,993

2,195

  Other long-term liabilities

4,167

2,752

Total stockholders' equity

6,173

11,472

Total liabilities and stockholders' equity

$         63,963

$ 71,848

HARRIS INTERACTIVE INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

Three months ended

Six months ended

December 31,

December 31,

2011

2010

2011

2010

Revenue from services

$      39,115

$      44,940

$      77,378

$      81,954

Operating expenses:

  Cost of services

24,470

29,560

48,467

53,753

Selling, general and administrative

11,393

12,312

23,379

24,876

Depreciation and amortization

1,197

1,515

2,490

3,043

Restructuring and other charges

(57)

679

6,823

679

Total operating expenses

37,003

44,066

81,159

82,351

Operating income (loss)

2,112

874

(3,781)

(397)

Operating margin

5.4%

1.9%

-4.9%

-0.5%

Interest expense, net

204

308

398

762

   Income (loss) from operations before income taxes

1,908

566

(4,179)

(1,159)

Provision (benefit) for income taxes

283

223

153

(165)

  Net income (loss)

$        1,625

$           343

$       (4,332)

$          (994)

Basic net income (loss) per share

$          0.03

$          0.01

$         (0.08)

$         (0.02)

Diluted net income (loss) per share

$          0.03

$          0.01

$         (0.08)

$         (0.02)

Weighted average shares outstanding -

     Basic

55,272,335

54,472,556

55,149,610

54,447,673

     Diluted

55,294,426

54,542,596

55,149,610

54,447,673

Reconciliation of GAAP Income to EBITDA and Adjusted EBITDA

Three months ended

Six months ended

December 31,

December 31,

2011

2010

2011

2010

GAAP net income (loss)

$ 1,625

$    343

$ (4,332)

$   (994)

Interest expense, net

204

308

398

762

Provision (benefit) for income taxes

283

223

153

(165)

Depreciation and amortization

1,462

1,937

3,005

3,895

EBITDA

$ 3,574

$ 2,811

$    (776)

$ 3,498

Stock-based compensation (1)

271

171

550

350

Adjusted EBITDA

$ 3,845

$ 2,982

$    (226)

$ 3,848

Adjusted EBITDA

$ 3,845

$ 2,982

$    (226)

$ 3,848

Add-back of restructuring and other charges

(57)

679

6,823

679

Adjusted EBITDA with add-back of restructuring and other charges

$ 3,788

$ 3,661

$  6,597

$ 4,527

(1) Stock-based compensation expense represents the cost of stock-based compensation awarded by the Company to its employees under the FASB guidance for stock-based compensation

Press Contact:Michael T. BurnsInvestor Relations Harris Interactive Inc.800-866-7655 x7328mburns@harrisinteractive.com

SOURCE Harris Interactive Inc.




Back to top