Technology research firm Forrester’s 4Q profit falls 27 pct on 2 pct lower revenue

Forrester 4Q profit falls 27 pct on lower revenue

CAMBRIDGE, Mass. — Technology research firm Forrester Research Inc. said Wednesday that its fourth-quarter net income fell 27 percent as business for both its research and advisory services declined.

Forrester earned $6.7 million, or 29 cents per share, compared with $9.2 million, or 39 cents per share, a year earlier.

Excluding one-time items, such as $2.3 million in reorganization costs, the company recorded earnings of $7.9 million, or 35 cents per share, for the period that ended in December. That compares with $9 million, or 38 cents per share, a year earlier.

Its revenue fell 2 percent to $61.5 million from $62.9 million. Advisory services revenue fell 4.6 percent to $20.7 million, while research services declined 1 percent to $40.8 million.

Forrester’s performance beat the average forecast of analysts polled by Thomson Reuters, who were expecting revenue of $59.8 million.

For the year, Forrester earned $19.8 million, or 86 cents per share, down from $29.2 million, or $1.24 per share, in 2008. Revenue was $233.4 million, down from $240.9 million.

Looking ahead, Forrester forecast first-quarter revenue of $57.5 million to $59.5 million and earnings, excluding one-time items, of 21 cents per share to 25 cents per share.

For 2010, Forrester expects to see revenue of $240 million to $280 million and earnings without one-time items in the range of 97 cents per share to $1.03 per share.

Shares of Forrester, based in Cambridge, Mass., fell 11 cents to $29.08 in afternoon trading.