Harris Reports 'Pivotal Year' for Turnaround

Harris Interactive has reported a 5% drop in revenue for the year ended June 30th, to $140.3m; but adjusted EBITDA growth of 25% to $15.3m, leading CEO Al Angrisani to describe fiscal 2013 as a 'pivotal year' in the firm's turnaround process.

Angrisani (pictured) was brought in to Harris in 2011 to advise on turnaround strategy, following a slump in revenues from a high of $239m in 2008 to $168m in 2010.

The firm said this week that revenue for fiscal 2013 was down as a result of declines in the UK and Canada, but net income was $6.9m from a loss of $5.6m in fiscal 2012. Angrisani said that this was the first time the company had achieved full fiscal year net income since 2007.

Operating income was $7.5m, compared with an operating loss of $2.7m the previous year, with the 2013 figure including $1.3m in restructuring and additional charges relating to lease impairment at certain offices, compared with $7.5m for fiscal 2012.

The firm has also paid off all its outstanding debt, and built its cash position from $11.5m at the end of fiscal 2012, to $15.7m at the end of fiscal 2013. Angrisani explained that Harris is planning to invest some of this cash in 'intellectual capital' by adding new sales, research and consulting staff in areas of the business where there are opportunities for profitable growth such as new technologies and new data techniques.

While fourth quarter revenues were up slightly to $36.7m from $36.5m in the prior year period, Angrisani said the firm had experienced a 'slow start' in Q1, and had seen some 'softness' in a couple of areas of the US business. Overall he declared himself pleased with full fiscal 2013 financial performance, adding: 'Going forward, we will begin the transition away from the turnaround of the last two fiscal years to a business model focused on investing in the business for long term shareholder value creation.'

Based on current market conditions, for the year ended June 30th 2014, the company is projecting adjusted EBITDA between $14.5m and $16.5m.

Web site: www.harrisinteractive.com .