Forrester Research Sees Q3 Profit Decline

US technology research and consulting firm Forrester Research has reported that on a GAAP-reported basis, third quarter net income has dropped 7% to $6.4m or $0.27 per share, compared with $6.8m or $0.29 per share for the same period last year.

On a pro forma basis, net income for the third quarter was $7.4m, against $6.7m for the prior year quarter.

During the period, total revenues rose 16% to $59.5m, compared with $51.1m for same period last year, while revenue from the firm's research services rose 22% to $40.3m.

Expenses for the firm's stock option investigation and reinstatement of its historical financial statements cost the firm $808k during the quarter.

Nine month revenues for the group were $178.0m, compared with $153.6m last year.

'Forrester's third-quarter financials were solid despite the economic slowdown,' said Founder, Chairman and CEO George Colony. 'We achieved our revenue and profit goals and are cautiously optimistic about the rest of 2008. During the third quarter, we continued to add new clients while renewing and enriching our existing clients.'

Forrester Research, which earlier in the year acquired rival JupiterResearch, is predicting full year total revenues of approximately $242m to $248m, compared to a prior outlook of $246m to $252m.

This morning, shares were up 84 cents at $26.01 on Nasdaq.

Web site: www.forrester.com .