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

February 04, 2011 | About:
10qk

10qk

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Harris Interactive Inc. (HPOL) filed Quarterly Report for the period ended 2010-12-31.

Harris Interact has a market cap of $57.1 million; its shares were traded at around $1.0501 with and P/S ratio of 0.4. Hedge Fund Gurus that owns HPOL: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns HPOL: Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Revenue from services. Revenue from services increased by $311, or 0.7%, to $44,940 for the three months ended December 31, 2010 compared with the same prior year period. Excluding foreign currency exchange rate differences, revenue from services for the three months ended December 31, 2010 increased by 1.7% compared with the same prior year period. As more fully described below, revenue from services was impacted by several factors.

Asian revenue increased by $315 to $1,438 for the three months ended December 31, 2010, an increase of 28.1% compared with the same prior year period. The impact of the foreign exchange rate on Asian revenue for the three months ended December 31, 2010 was inconsequential compared with the same prior year period. The increase in Asian revenue was driven primarily by revenue from work on a large tracking study sold during the fourth quarter of fiscal 2010.

Income taxes. We recorded an income tax provision of $223 for the three months ended December 31, 2010, compared with an income tax benefit of $1,227 for the same prior year period. The tax provision for the three months ended December 31, 2010 was comprised primarily of tax expense related to pre-tax income in certain of our international jurisdictions, partially offset by an additional tax benefit of $188 in France applied for and refunded during the quarter. The tax benefit for the three months ended December 31, 2009 was principally impacted by the tax benefits related to pre-tax losses in certain of our foreign jurisdictions and a tax law change which resulted in an additional tax benefit of $1,103. Based upon managements assessment of the realizability of the Companys deferred tax assets in the U.S., U.K., and Asia, a full valuation allowance continued to be recorded at December 31, 2010.

Asian revenue increased by $430 to $2,457 for the six months ended December 31, 2010, an increase of 21.2% compared with the same prior year period. The impact of the foreign exchange rate on Asian revenue for the six months ended December 31, 2010 was inconsequential compared with the same prior year period. The increase in Asian revenue was driven primarily by revenue from work on a large tracking study sold during the fourth quarter of fiscal 2010.

Interest expense. Interest expense was $785 or 1.0% of total revenue for the six months ended December 31, 2010, compared with $1,036 or 1.2% of total revenue for the same prior year period. Interest expense for the six months ended December 31, 2010 reflects the impact of the decline in our outstanding debt as we continue to make required principal payments, as well as the decline in our effective interest rate as a result of amending our credit agreement in June 2010.

Income taxes. We recorded an income tax benefit of $165 for the six months ended December 31, 2010, compared with an income tax benefit of $1,476 for the same prior year period. The tax benefit for the six months ended December 31, 2010 was driven primarily by an additional tax benefit of $188 in France applied for and refunded during the second quarter. The tax benefit for the six months ended December 31, 2009 was principally impacted by tax benefits related to pre-tax losses in certain of our foreign jurisdictions and a tax law change which resulted in an additional tax benefit of $1,103. Based upon managements assessment of the realizability of our deferred tax assets in the U.S., U.K., and Asia, a full valuation allowance continued to be recorded at December 31, 2010.

Read the The complete Report

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10qk
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