European Growth Keeps ISG on the Rise

Information Services Group has announced third quarter revenue up 3% in constant currency terms, to $53.3m. Revenues in Europe rose strongly (up 10% to $19.7m) while elsewhere they were flat or fell back.

Revenue of $28.4m for the Americas was flat (constant currency), and Asia Pacific revenue fell 5% to $5.1m. The Americas and European results were much improved on the second quarter, when the rise in Europe was just 3% and Americas revenue fell 8% - however Asia pacific revenue had been up 7% in Q2.

Operating income for the third quarter (ended September 30th) was $3.8m, more than doubled versus Q3 2013, while adjusted net income was $3.8m, up 44%, and adjusted earnings per share rose to $0.10 from $0.07. Adjusted EBITDA was $6.5m, up 12% on a reported basis or 10% on a constant-currency basis, from $5.8m in Q3 2013. Cash balance increased nu $4.7m to $21.8m and debt fell slightly to $54.2m.

Chairman and CEO Michael P. Connors (pictured) said the company had 'continued its momentum' in Managed Services, with more than $20 million in recently signed contracts, and concluded: 'We remain confident in ISG's future, our strategy, and our prospects for long-term growth.'

The group's capabilities include outsourcing advisory services, benchmarking and analytics and public sector consulting - the three companies acquired with these specialisms (TPI, Compass and STA Consulting respectively) were combined under the ISG brand in 2012.

The company is based in Stamford, CT, has more than 850 employees and is online at www.isg-one.com .