'No Quick Fix' for Harris as Results Disappoint

Harris Interactive's results for the fourth quarter and full year fiscal 2011 show a further decline in revenues in real terms, and a significant rise in operating loss. Recently appointed Interim CEO Al Angrisani says there is 'not going to be a quick or easy fix' for the company's problems.

Reported fourth quarter revenue was $45.2m, up from $43.6m in Q4 of fiscal 2010 but in real terms - allowing for currency changes - it was down 1% year-on-year. Operating loss of $4.7m included $4.3m in restructuring and other charges, but even without these was still worse than the previous Q4 when the firm made an operating income of $0.2m. Bookings for Q4 were $34.6m, down from $35.7m the previous year and down a full 10% once currency effects are excluded; while adjusted EBITDA was $1.5m, down from $2.3m in Q4 2010.

For the full year, revenue fell 1.9% from $168.4m in 2010 to $165.3m; operating loss jumped from $0.5m to $7.0m and adjusted EBITDA fell from $8.9m to $6.5m.

Angrisani replaced Kimberly Till, who was herself brought in to try and restore the business's fortunes three years ago, and who appeared to be having some success a year ago.

Of the latest results, Angrisani says: 'It has been approximately 100 days since I assumed the role of Interim CEO and initiated a turnaround program. The financial results are the product of a previous turnaround effort that was not successful. Putting this disappointing fiscal 2011 behind us, we are now focused on remedying the major challenges that face the Company as we attempt to restore the Company's business model back to viability and begin the process of creating shareholder value. Unfortunately, this is not going to be a quick or easy fix.'

Home page: www.harrisinteractive.com .