Gartner Inc. (IT, Financial) filed Quarterly Report for the period ended 2009-09-30.
Gartner Inc. is a research and advisory firm that helps clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research Gartner Consulting Gartner Measurement and Gartner Events. Gartner has the most comprehensive body of global research that reports on and analyzes the technologies that drive business and organizational success. Gartner Consulting leverages the company's industry-leading research capabilities to deliver hands-on client support from strategy to measurable results. Gartner Inc. has a market cap of $1.8 billion; its shares were traded at around $18.95 with a P/E ratio of 20.4 and P/S ratio of 1.4. Gartner Inc. had an annual average earning growth of 17.8% over the past 5 years.
For those government contracts that permit termination, we bill the client the full amount billable under the contract but only record a receivable equal to the earned portion of the contract. In addition, we only record deferred revenue on these government contracts when cash is received. Deferred revenues attributable to government contracts were $58.2 million and $61.6 million at September 30, 2009 and December 31, 2008, respectively. In addition, at September 30, 2009 and December 31, 2008, we had not recognized uncollected receivables or deferred revenues relating to government contracts that permit termination of $11.2 million and $12.1 million, respectively.
Cost of services and product development decreased 8% quarter-over-quarter, or $10.4 million, with about $4.5 million of the decrease due to favorable foreign currency impact. We also had lower travel and internal meeting charges of $3.2 million and $1.2 million in lower personnel costs. Cost of services and product development as a percentage of sales increased by 1 point, to 44% from 43%, primarily due to lower utilization and billing rates in our Consulting business.
For the nine months ended September 30, 2009, Cost of services and product development expense decreased by about $63.7 million, or 15%. The favorable impact of foreign currency translation reduced expense by about $24.5 million. We had lower conference expenses of $13.3 million due to discontinued events and tight cost controls. We also had reduced travel and internal meeting charges of $13.7 million and lower personnel costs of about $6.5 million. The remaining $5.7 million reduction was spread across a number of other expense categories. Cost of services and product development as a percentage of sales declined by 2 points, to 43% from 45%, primarily due to tight expense controls across our businesses.
Selling, general and administrative (SG&A) expense decreased $12.7 million quarter-over-quarter, or 10%. The favorable impact of foreign currency translation reduced expense by about $5.0 million. We also had about $4.5 million of lower expenses related to reduced travel, internal meeting, and recruiting costs, reflecting our tight focus on cost controls. The remaining $3.2 million reduction reflects lower personnel and other costs.
For the nine months ended September 30, 2009, SG&A expense decreased by about $41.4 million, or 11%, compared to the same period in 2008. Consistent with the quarter-over-quarter decline, the impact of foreign currency translation reduced expense by about $23.0 million and we had lower travel, internal meeting, and recruiting costs of about $15.0 million. The remaining $3.4 million reduction was spread across a number of other expense categories.
Read the The complete ReportIT is in the portfolios of Ron Baron of Baron Funds, George Soros of Soros Fund Management LLC.
Gartner Inc. is a research and advisory firm that helps clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research Gartner Consulting Gartner Measurement and Gartner Events. Gartner has the most comprehensive body of global research that reports on and analyzes the technologies that drive business and organizational success. Gartner Consulting leverages the company's industry-leading research capabilities to deliver hands-on client support from strategy to measurable results. Gartner Inc. has a market cap of $1.8 billion; its shares were traded at around $18.95 with a P/E ratio of 20.4 and P/S ratio of 1.4. Gartner Inc. had an annual average earning growth of 17.8% over the past 5 years.
Highlight of Business Operations:
We repaid $81.3 million of our term loans and we had approximately $118.0 million of operating cash flow in the nine months ended September 30, 2009. Our cash and cash equivalents totaled $112.8 million as of September 30, 2009, and we had approximately $248.0 million of available borrowing capacity under our revolving credit facility. We believe we have a strong cash position and adequate borrowing capacity.For those government contracts that permit termination, we bill the client the full amount billable under the contract but only record a receivable equal to the earned portion of the contract. In addition, we only record deferred revenue on these government contracts when cash is received. Deferred revenues attributable to government contracts were $58.2 million and $61.6 million at September 30, 2009 and December 31, 2008, respectively. In addition, at September 30, 2009 and December 31, 2008, we had not recognized uncollected receivables or deferred revenues relating to government contracts that permit termination of $11.2 million and $12.1 million, respectively.
Cost of services and product development decreased 8% quarter-over-quarter, or $10.4 million, with about $4.5 million of the decrease due to favorable foreign currency impact. We also had lower travel and internal meeting charges of $3.2 million and $1.2 million in lower personnel costs. Cost of services and product development as a percentage of sales increased by 1 point, to 44% from 43%, primarily due to lower utilization and billing rates in our Consulting business.
For the nine months ended September 30, 2009, Cost of services and product development expense decreased by about $63.7 million, or 15%. The favorable impact of foreign currency translation reduced expense by about $24.5 million. We had lower conference expenses of $13.3 million due to discontinued events and tight cost controls. We also had reduced travel and internal meeting charges of $13.7 million and lower personnel costs of about $6.5 million. The remaining $5.7 million reduction was spread across a number of other expense categories. Cost of services and product development as a percentage of sales declined by 2 points, to 43% from 45%, primarily due to tight expense controls across our businesses.
Selling, general and administrative (SG&A) expense decreased $12.7 million quarter-over-quarter, or 10%. The favorable impact of foreign currency translation reduced expense by about $5.0 million. We also had about $4.5 million of lower expenses related to reduced travel, internal meeting, and recruiting costs, reflecting our tight focus on cost controls. The remaining $3.2 million reduction reflects lower personnel and other costs.
For the nine months ended September 30, 2009, SG&A expense decreased by about $41.4 million, or 11%, compared to the same period in 2008. Consistent with the quarter-over-quarter decline, the impact of foreign currency translation reduced expense by about $23.0 million and we had lower travel, internal meeting, and recruiting costs of about $15.0 million. The remaining $3.4 million reduction was spread across a number of other expense categories.
Read the The complete ReportIT is in the portfolios of Ron Baron of Baron Funds, George Soros of Soros Fund Management LLC.
