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Harris Interactive Inc. Reports Operating Results (10-Q)

November 04, 2010 | About:
10qk

10qk

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Harris Interactive Inc. (HPOL) filed Quarterly Report for the period ended 2010-09-30.

Harris Interactive Inc. has a market cap of $43.3 million; its shares were traded at around $0.84 with and P/S ratio of 0.3. HPOL is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Revenue from services. Revenue from services decreased by $1,920, or 4.9%, to $37,015 for the three months ended September 30, 2010 compared with the same prior year period. As more fully described below, revenue from services was impacted by several factors and included a negative foreign exchange rate impact of $481.

North American revenue decreased by $743 to $26,616 for the three months ended September 30, 2010 compared with the same prior year period, a decrease of 2.7%. By country, North American revenue for the three months ended September 30, 2010 was comprised of:

Secured revenue for the three months ended September 30, 2010 was $45.0 million, compared with $42.5 million for the same prior year period. The increase in secured revenue was due primarily to the increase in bookings discussed above, partially offset by a $0.4 million unfavorable foreign exchange rate impact compared with the same prior year period.

that may be generated from our operations, and funds to the extent available through our credit facilities discussed in Note 8, Borrowings, to our unaudited consolidated financial statements contained in this Quarterly Report on Form 10-Q. Under our Amended and Restated Credit Agreement, we must maintain a minimum cash balance of the greater of $5,000 and 1.2 times the amount of borrowings we make under the revolving line that is part of our credit facilities (including outstanding letters of credit). While we believe that our available sources of cash, including funds available through our revolving line, will support known or reasonably likely cash requirements over the next 12 months, including quarterly principal payments of $1,199 and interest payments due under our Amended and Restated Credit Agreement, our ability to generate cash from our operations is dependent upon our ability to profitably generate revenue, which requires that we continually develop new business, both for growth and to replace completed projects. Although work for no one client constitutes more than 10% of our revenue, we have had to find significant amounts of replacement and additional revenue as client relationships and work for continuing clients change and will likely have to continue to do so in the future. Our ability to profitably generate revenue depends not only on execution of our business plans, but also on general market factors outside of our control. As many of our clients treat all or a portion of their market research expenditures as discretionary, our ability to profitably generate revenue is adversely impacted whenever there are adverse macroeconomic conditions in the markets we serve.

Net cash provided by (used in) investing activities. Net cash used in investing activities was $173 for the three months ended September 30, 2010, compared with $451 provided by investing activities for the same prior year period. The change was primarily due to a decrease in the net proceeds from the maturities and sales of marketable securities from $451 for the three months ended September 30, 2009 to $0 for the three months ended September 30, 2010.

Net cash used in financing activities. Net cash used in financing activities was $1,175 for the three months ended September 30, 2010, compared with $1,731 for the same prior year period. The change was primarily due to a decrease in our quarterly principal payments from $1,731 to $1,199 under our Amended and Restated Credit Agreement.

Read the The complete Report

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