ISG 'Positioned to Manage Through Downturn'

Information Services Group (ISG), which owns outsourcing data and advisory firm TPI, has reported a 1% climb in revenues to $174.8m during 2008, while Q4 revenues dropped 13% to $37.4m.

'Against the back drop of one of the most challenging macro-economic climates in memory, 2008 was a year of strong accomplishments for ISG,' said Chairman and CEO Michael Connors. 'Our global leadership, data driven products and services and our robust geographic footprint have positioned us well to manage through the current economic downturn.'

Before ISG purchased TPI in November 2007, it was a special purpose acquisition company which had no operations. Therefore, to ensure comparability between 2008 and 2007, proforma results are given for the fourth quarter and full year of 2007 on the basis that the acquisition had occurred on January 1, 2007.

On a proforma basis, ISG Q4 revenues decreased $5.7m or 13.3% from $43.1m to $37.4m in the fourth quarter of 2007. International revenues decreased just 4.7% from proforma Q4 2007, while in the Americas the decline was much steeper at 19.0%.

ISG reported a $70.9 million operating loss for the three months ended December 31, 2008 compared with a reported operating loss of $0.9 million during the same 2007 period. The 2008 figure was attributable to a $74.2 million impairment charge resulting mainly from the sustained decline in the market value of its common stock and the challenging economic conditions - with this excluded, a $3.3m operating profit would have been recorded.

Revenues from international operations increased 14.8% from proforma 2007 level, which the group says was driven by strong demand from clients in the manufacturing, telecoms and consumer sectors, offset partially by softness in the financial services and energy markets.

For the Americas, revenues were down 7.6% compared with the same prior year period, primarily due to current and prospective clients - particularly in the financial services and automotive sectors - delaying sourcing decisions during the second half of 2008 in light of the difficult economic conditions.

Connecticut-based ISG is run by a team including several former Nielsen / VNU executives and is on the web at www.informationsg.com , while Houston-based TPI is online at www.tpi.net .

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