Harris Interactive Inc. (HPOL, Financial) filed Quarterly Report for the period ended 2010-03-31.
Harris Interactive Inc. has a market cap of $71.7 million; its shares were traded at around $1.32 with and P/S ratio of 0.4. HPOL is in the portfolios of Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Revenue from services. Revenue from services decreased by $16,090, or 11.4%, to $124,767 for the nine months ended March 31, 2010 compared with the same prior year period, and included a positive foreign exchange rate impact of $1,633. This decrease was principally as a result of the timing of the global recession and the factors discussed under Revenue from services for the three months ended March 31, 2010. While revenue from services was down on a consolidated basis and in most of our geographic regions compared with the same prior year period, the rate of decline has slowed significantly.
Restructuring and other charges. Restructuring and other charges were $623 or less than 1% of total revenue for the nine months ended March 31, 2010, compared with $11,813 or 8.4% of total revenue for the same prior year period. There were no restructuring activities during the nine months ended March 31, 2010. Other charges for the nine months ended March 31, 2010 included additional legal fees associated with the amendment of our credit agreement during fiscal 2009, costs incurred to close our telephone-based data collection center in Brentford, United Kingdom, and costs associated with reorganizing the operational structure of our businesses in Asia. For the nine months ended March 31, 2009, we incurred restructuring charges of $6,086 related to headcount reductions and consolidations of leased office space at our U.S. facilities, and $5,727 of other charges which included fees incurred for services provided by a consulting firm engaged to assist us with performance improvement and other activities, contractually obligated payments to former executives, and legal fees in connection with the amendment of our credit agreement.
Interest expense. Interest expense was $1,560 or 1.3% of total revenue for the nine months ended March 31, 2010, compared with $2,477 or 1.8% of total revenue for the same prior year period. Interest expense for the nine months ended March 31, 2009 included a $961 charge to reflect the ineffectiveness of our interest rate swap as a cash flow hedge as a result of the violation of certain financial covenants under our credit agreement. There was no such charge during the nine months ended March 31, 2010. Interest expense for the nine months ended March 31, 2010 also reflects the impact of the decline in outstanding debt as we continue to make required principal payments.
Income taxes. We recorded an income tax benefit of $1,354 for the nine months ended March 31, 2010, compared with an income tax provision of $16,105 for the same prior year period. The tax benefit for the nine months ended March 31, 2010 was principally impacted by the tax benefits related to operating losses in certain of our foreign jurisdictions and a tax law change which resulted in an additional tax benefit of $1,103. The tax provision for the nine months ended March 31, 2009 was principally impacted by the valuation allowance of $18,861 recorded against our U.S. deferred tax assets. A full valuation allowance continues to be recorded at March 31, 2010 against our U.S. deferred tax assets.
Bookings for the three months ended March 31, 2010 were $44.7 million, an increase of 17.8% compared with $37.9 million for the same prior year period. Excluding a favorable foreign currency impact of $4.5 million, bookings were up 6.1%. The increase in bookings was primarily due to strong sales growth in our service bureau business, omnibus products, and sales within the government sector in Canada, the renewal of a large tracking study in the U.K. after a one year postponement of that study and continued success in selling to new clients across several industry sectors in France, partially offset by an 8.0% decline in U.S. bookings driven primarily by our sales force requiring additional time to rebuild the sales pipeline.
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Harris Interactive Inc. has a market cap of $71.7 million; its shares were traded at around $1.32 with and P/S ratio of 0.4. HPOL is in the portfolios of Chuck Royce of Royce& Associates, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Restructuring and other charges. Restructuring and other charges were $92 or less than 1% of total revenue for the three months ended March 31, 2010, compared with $5,341 or 13.4% of total revenue for the same prior year period. There were no restructuring activities during the three months ended March 31, 2010. Other charges for the three months ended March 31, 2010 consisted primarily of costs associated with reorganizing the operational structure of our businesses in Asia. For the three months ended March 31, 2009, we incurred restructuring charges of $2,966 related to headcount reductions and consolidations of leased office space at our U.S. facilities and $2,375 of other charges which included fees incurred for services provided by a consulting firm engaged to assist us with performance improvement and other activities, contractually obligated payments to former executives, and legal fees in connection with the amendment of our credit agreement.Revenue from services. Revenue from services decreased by $16,090, or 11.4%, to $124,767 for the nine months ended March 31, 2010 compared with the same prior year period, and included a positive foreign exchange rate impact of $1,633. This decrease was principally as a result of the timing of the global recession and the factors discussed under Revenue from services for the three months ended March 31, 2010. While revenue from services was down on a consolidated basis and in most of our geographic regions compared with the same prior year period, the rate of decline has slowed significantly.
Restructuring and other charges. Restructuring and other charges were $623 or less than 1% of total revenue for the nine months ended March 31, 2010, compared with $11,813 or 8.4% of total revenue for the same prior year period. There were no restructuring activities during the nine months ended March 31, 2010. Other charges for the nine months ended March 31, 2010 included additional legal fees associated with the amendment of our credit agreement during fiscal 2009, costs incurred to close our telephone-based data collection center in Brentford, United Kingdom, and costs associated with reorganizing the operational structure of our businesses in Asia. For the nine months ended March 31, 2009, we incurred restructuring charges of $6,086 related to headcount reductions and consolidations of leased office space at our U.S. facilities, and $5,727 of other charges which included fees incurred for services provided by a consulting firm engaged to assist us with performance improvement and other activities, contractually obligated payments to former executives, and legal fees in connection with the amendment of our credit agreement.
Interest expense. Interest expense was $1,560 or 1.3% of total revenue for the nine months ended March 31, 2010, compared with $2,477 or 1.8% of total revenue for the same prior year period. Interest expense for the nine months ended March 31, 2009 included a $961 charge to reflect the ineffectiveness of our interest rate swap as a cash flow hedge as a result of the violation of certain financial covenants under our credit agreement. There was no such charge during the nine months ended March 31, 2010. Interest expense for the nine months ended March 31, 2010 also reflects the impact of the decline in outstanding debt as we continue to make required principal payments.
Income taxes. We recorded an income tax benefit of $1,354 for the nine months ended March 31, 2010, compared with an income tax provision of $16,105 for the same prior year period. The tax benefit for the nine months ended March 31, 2010 was principally impacted by the tax benefits related to operating losses in certain of our foreign jurisdictions and a tax law change which resulted in an additional tax benefit of $1,103. The tax provision for the nine months ended March 31, 2009 was principally impacted by the valuation allowance of $18,861 recorded against our U.S. deferred tax assets. A full valuation allowance continues to be recorded at March 31, 2010 against our U.S. deferred tax assets.
Bookings for the three months ended March 31, 2010 were $44.7 million, an increase of 17.8% compared with $37.9 million for the same prior year period. Excluding a favorable foreign currency impact of $4.5 million, bookings were up 6.1%. The increase in bookings was primarily due to strong sales growth in our service bureau business, omnibus products, and sales within the government sector in Canada, the renewal of a large tracking study in the U.K. after a one year postponement of that study and continued success in selling to new clients across several industry sectors in France, partially offset by an 8.0% decline in U.S. bookings driven primarily by our sales force requiring additional time to rebuild the sales pipeline.
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