ISG Seeks Acquisitions as Revenues Stabilise

In the US, Information Services Group (ISG), which owns outsourcing data firm TPI, has reported flattish Q1 revenues of $34.8m (Q1 2009: $34.3m), and says it will pursue potential acquisitions following signs of recovery in the sector.

Connecticut-based ISG is run by a team including several former Nielsen / VNU executives, including Chairman and CEO Michael Connors. This time last year, it was badly hit by the recession, reporting a 25% crash in revenues from $45.6m in Q1 2008 (down 17% before currency effects).

ISG's first quarter 2010 revenue before client reimbursable expenses (fee revenue) totalled $32.2m - an increase of 1%, but down 4% on a constant currency basis. Adjusted EBITDA was $4.8m, or 14.8% of fee revenue, down c.15% from first quarter 2009 levels once currency effects are excluded. Operating income fell $0.4m to $1.7m. Thefirm put these declines down to increased variable compensation expense, partially offset by higher revenue.

Revenue in the Americas increased 5% to $21.2m for the quarter, compared with $20.2m in the year ago period, which the firm puts down to higher levels of sourcing activity.

However, revenue from international operations decreased 12% on a constant currency basis, and 3% including the impact of currency translation from first quarter 2009 levels, with lower levels of sourcing activity in Europe, offset by strength in Asia Pacific, the firm said.

'The sourcing industry began to show signs of recovery in the first quarter,' states Connors. 'Our investments in broadening our geographic footprint and expanding our industry verticals have resulted in several new client wins, and we are well-positioned to take advantage of these opportunities during 2010.'

'Additionally our solid balance sheet allows us to pursue potential acquisitions that align with our vision while at the same continuing to invest in all parts of our business,' he adds.

Web sites: www.informationsg.com and www.tpi.net .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.