Harris Interactive Inc. (HPOL, Financial) filed Quarterly Report for the period ended 2009-03-31.
Harris Interactive Inc. is a leading market research and polling firm using Internet-based and traditional methodologies to provide the clients with information about the views experiences and attitudes of people worldwide. The company provides the clients with information about the preferences needs purchase behavior and brand recognition of their potential and existing customers. The company also offers the clients continuous tracking capabilities so that they can ascertain product performance competitive position and consumer satisfaction. Harris Interactive Inc. has a market cap of $19.9 million; its shares were traded at around $0.37 with and P/S ratio of 0.1. Harris Interactive Inc. had an annual average earning growth of 4.3% over the past 5 years.
At September 30, 2008, we considered the incremental decline in our stock price from $2.01 at June 30 to $1.73 at the end of September. At that time, we concluded that this decline was short-term in nature and absent factors to the contrary, did not trigger a review for impairment outside of our next scheduled annual impairment evaluation date, June 30, 2009.
Asian revenue increased by $396 to $919 for the three months ended March 31, 2009, an increase of 75.7% compared with the same prior year period. The increase was principally impacted by increased focus on driving business with clients in the pharmaceutical, telecommunications and hotel industries. The impact of the foreign exchange rate on Asian revenue was inconsequential compared with the same prior year period.
Cost of services. Cost of services was $24,912, or 62.4% of total revenue, for the three months ended March 31, 2009, compared with $34,150, or 59.6% of total revenue, for the same prior year period. Cost of services was impacted by the mix of projects during the quarter when compared with the same prior year period, the declines in revenue discussed above, and the headcount reductions taken during this fiscal year, which are more fully described above under Restructuring. Cost of services as a percentage of revenue for the three months ended March 31, 2009 was greater than the same prior year period given the pace of the declines in revenue relative to our cost reductions.
Interest expense. Interest expense was $647, or 1.6% of total revenue, for the three months ended March 31, 2009, compared with $514, or 0.9% of total revenue, for the same prior year period. The increase in interest expense was principally the result of a $56 charge recorded during the quarter to reflect the ineffectiveness of our interest rate swap as a cash flow hedge, along with an increase in the applicable spread under our credit facilities from 0.875% to 4.00%, each as a result of the covenant violation and temporary waivers described below under Credit Facilities.
Revenue from services. Revenue from services decreased by $34,367, or 19.6%, to $140,857 for the nine months ended March 31, 2009 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 $8,636 compared with the same prior year period.
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Harris Interactive Inc. is a leading market research and polling firm using Internet-based and traditional methodologies to provide the clients with information about the views experiences and attitudes of people worldwide. The company provides the clients with information about the preferences needs purchase behavior and brand recognition of their potential and existing customers. The company also offers the clients continuous tracking capabilities so that they can ascertain product performance competitive position and consumer satisfaction. Harris Interactive Inc. has a market cap of $19.9 million; its shares were traded at around $0.37 with and P/S ratio of 0.1. Harris Interactive Inc. had an annual average earning growth of 4.3% over the past 5 years.
Highlight of Business Operations:
Restructuring charges for the three and nine months ended March 31, 2009 totaled $2,966 and $6,086, respectively. We expect that the headcount and leased space reductions described above will result in approximately $21,000 in annualized savings.At September 30, 2008, we considered the incremental decline in our stock price from $2.01 at June 30 to $1.73 at the end of September. At that time, we concluded that this decline was short-term in nature and absent factors to the contrary, did not trigger a review for impairment outside of our next scheduled annual impairment evaluation date, June 30, 2009.
Asian revenue increased by $396 to $919 for the three months ended March 31, 2009, an increase of 75.7% compared with the same prior year period. The increase was principally impacted by increased focus on driving business with clients in the pharmaceutical, telecommunications and hotel industries. The impact of the foreign exchange rate on Asian revenue was inconsequential compared with the same prior year period.
Cost of services. Cost of services was $24,912, or 62.4% of total revenue, for the three months ended March 31, 2009, compared with $34,150, or 59.6% of total revenue, for the same prior year period. Cost of services was impacted by the mix of projects during the quarter when compared with the same prior year period, the declines in revenue discussed above, and the headcount reductions taken during this fiscal year, which are more fully described above under Restructuring. Cost of services as a percentage of revenue for the three months ended March 31, 2009 was greater than the same prior year period given the pace of the declines in revenue relative to our cost reductions.
Interest expense. Interest expense was $647, or 1.6% of total revenue, for the three months ended March 31, 2009, compared with $514, or 0.9% of total revenue, for the same prior year period. The increase in interest expense was principally the result of a $56 charge recorded during the quarter to reflect the ineffectiveness of our interest rate swap as a cash flow hedge, along with an increase in the applicable spread under our credit facilities from 0.875% to 4.00%, each as a result of the covenant violation and temporary waivers described below under Credit Facilities.
Revenue from services. Revenue from services decreased by $34,367, or 19.6%, to $140,857 for the nine months ended March 31, 2009 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 $8,636 compared with the same prior year period.
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