Harris Cuts Losses Despite Revenue Dip

Harris Interactive has announced its financial results for the first quarter of fiscal 2010, with revenue of $38.9m, down $11.3m or 23% on the previous period, but operating loss almost eliminated due to cost-cutting measures.

The revenue decline was heightened by an unfavourable foreign exchange rate, accounting for $1.4m or 13% of the overall drop. Bookings are down from $43.5m to $32.7m.

Operating loss for the first quarter of fiscal 2010 was $0.4m and net loss $0.6m, as compared with an operating loss of $3.2m and net loss of $2.3m for the same period in the prior year.

Non-GAAP Adjusted EBITDA for the first quarter of fiscal 2010 was $1.9m, up from just $0.1m for the same period in the prior year. The US business generated $0.8m in operating income and $2.1m in Adjusted EBITDA in the quarter.

President and CEO Kimberly Till highlighted the second consecutive quarter of operating income for the US business and the 'significant improvement' in Adjusted EBITDA compared with last year's first quarter, which she says 'clearly demonstrate the benefit of the cost reductions we implemented last year.' Combined with a continuing strong cash position, Till says the firm remains on track to deliver on its key strategic initiatives. A 'comprehensive' set of initiatives currently underway to drive revenue and control costs include 'developing a robust pipeline of innovative products, significantly improving the efficiency of our workflow processes and systems, and developing larger more strategic account relationships', added Till.

Reporting a 23% decline in full year results in August, Till said Harris had taken $22m in annualized costs out of the business in the year, and expected to re-invest around $6m in the coming year on talent to support key strategic initiatives.

In September, the company received a warning from the Nasdaq, which gave it 180 days to increase its share price above a floor of $1. Tonight the shares were up ten cents on the day at $0.90.

Web site: www.harrisinteractive.com .