Contract Delays Hit ISG First Quarter

In the US, tech research and advisory firm Information Services Group (ISG) has delivered record quarterly revenues of $68.9m compared with $66.6m in the prior year period. However, Q1 adjusted EBITDA fell from $7.0m to $5.8m as several contracts were pushed back to Q2.

The firm was founded in 2006 and has just relocated its HQ to the Harbor Point area of Stamford. Recent acquisitions include emerging IT trends analyst Saugatuck Technology, subscription-based research, advisory and benchmarking firm Experton Group AG, and outsourcing advisory firm Alsbridge Holdings. ISG already owned outsourcing data and advisory firm TPI, benchmarking and analytics specialist Compass and public sector advisor STA Consulting.

For the first quarter of 2018, reported revenues were $21.8m in Europe (up 8% from the same period in 2017), $41.7m in the Americas (up 1%), and $5.4m in Asia Pacific (up 4%). Group operating income was $1.8m, up 49% from $1.2m in Q1 2017; net income for the quarter was $200k compared with a net loss of $600k in the prior year; and adjusted net income was $2.5m, down from $2.7m. ISG said first-quarter 2018 adjusted EBITDA had been impacted by the timing of several network advisory contracts that were delayed to the second quarter.

Founder, Chairman and CEO Michael Connors (pictured) added: 'Overall, growth was tempered by the timing of several network advisory engagements that moved into the second quarter, along with an anticipated decline in Germany. We remain confident of achieving our full-year revenue and adjusted EBITDA guidance based on continued strong demand for our digital services, growth in recurring revenues, and an expected return to growth in Germany'.

Web site: www.isg-one.com .

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