Gartner Group Fiscal 1996 Income up 68% on Revenue Growth of 34%.STAMFORD Stamford, town, England Stamford, town (1991 pop. 18,127), in the Parts of Kesteven, Lincolnshire, E central England, on the Welland River. It is a market town. Products include diesel engines, electrical equipment, bricks, and tiles. , Conn.--(BUSINESS WIRE)--Nov. 12, 1996-- Acquisition-related charge of $33.2 million taken in the fourth quarter Gartner Group (company) Gartner Group - One of the biggest IT industry research firms. Address: Connecticut, USA. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :GART GART Phosphoribosylglycinamide Formyltransferase/Phosphoribosylglycinamide Synthetase/Phosphoribosylaminoimidazole Synthetase GART Graphics Address Remapping Table (AGP chipset) GART Graphics Address Relocation Table ), today announced results for the fiscal year ended September September: see month. 30, 1996. Total revenues grew 34 percent to a record $394.7 million, compared with $295.1 million for fiscal 1995. Net income for the year increased 68 percent to $50.5 million ($0.51 per share) compared with $30.0 million ($0.32 per share), before acquisition-related and nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". in both periods. Gartner (Gartner, Inc., Stamford, CT, www.gartner.com) The largest information technology consulting firm that specializes in research and analysis. Founded in 1979 by Gideon Gartner, it has grown through acquisitions, including Dataquest in 1995 and Techrepublic in 2000. Group's fourth quarter revenues also increased 34 percent to $110.0 million from $81.9 million for the same period in 1995. Net income for the fourth quarter, before acquisition-related and nonrecurring charges, was $13.4 million ($0.13 per share), compared with $7.6 million ($0.08 per share) for the fourth quarter 1995, an increase of 76 percent. During the fourth quarter ended September 30, 1996, the Company incurred an acquisition-related charge of $33.2 million ($0.33 per share), primarily for in-process research and development costs associated with the acquisition of J3 Learning Corporation. Including the charge, the Company reported a net loss of $19.4 million ($0.19 per share) for the fourth quarter 1996. For the fiscal year, the Company reported net income of $16.4 million ($0.17 per share) after accounting for additional transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). related to the acquisition of Dataquest (Dataquest Inc., San Jose, CA, www.dataquest.com) A major market research and analysis firm in the information field. Dataquest offers market intelligence on more than 25 topics and provides conferences, annual subscriptions and custom research. . All per share amounts have been restated for the Dataquest acquisition and the Company's two-for-one stock split on April 1, 1996. Manny Fernandez Manny Fernandez is the name of at least three people:
adj. 1. Almost exact or correct: the approximate time of the accident. 2. 85 percent." Fernandez added, "We saw very strong market response to Gartner Group Learning's technology-based training products and believe we have gained a firm foothold foot·hold n. 1. A place providing support for the foot in climbing or standing. 2. A firm or secure position that provides a base for further advancement. foothold Noun 1. in this rapidly growing market. During the fourth quarter, we sold over $12 million in technology-based training products, which accelerated our growth rate above 30 percent." John Halligan John Halligan (4 May 1876 – 11 December 1934) was an admiral of the United States Navy in the early 20th century. Halligan, born 4 May 1876 in South Boston, Mass., graduated from the United States Naval Academy at the head of his class in 1898. , Executive Vice President and Chief Financial Officer commented, "This quarter marked several milestones for the Company. We reported our first $100 million revenue quarter and growth continues to accelerate, from a large base, as we bring a wider range of products and services to information technology professionals worldwide." Halligan added, "Also in line with our stated objectives, operating contribution margin improved by three points to 22.3 percent, largely a result of continued volume leverage and operating efficiencies." The Company reported contract value at September 30, 1996 of $390.0 million, representing a 29 percent increase from the previous year. In addition, backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of contracts, which includes training, consulting and other renewable business, was $50.1 million. Contract value is defined as the aggregate annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. subscription fees under all outstanding continuous service contracts in effect at a given point in time, without regard to the duration of the contracts outstanding at such time. Throughout the year, a number of new products and corporate initiatives added to the Company's overall growth and profitability. Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). and Japan contract value grew to 7 percent of total contract value, primarily fueled by locally developed products and services, sales initiatives and an expanded presence in the region. In addition, clients receiving deliverables via electronic mediums increased 58 percent to $126.0 million, or 32 percent of total contract value. Seven acquired companies were successfully integrated during the fiscal year adding new market segments and client organizations to the Company's core business. Gartner Group, Inc. is the world's leading provider of IT research, advisory and market research services. Founded in 1979 and headquartered in Stamford, Conn., Gartner Group serves approximately 7,500 client organizations worldwide. Additional information about Gartner Group is available on the World Wide Web at http://www.gartner.com. -0-
GARTNER GROUP, INC.
OPERATING RESULTS
(Dollars in thousands, except per share data)
QTR ENDED 9/30 FY ENDED 9/30
1996 1995 %Change 1996 1995 %Change
Revenues
Continuous services $82,071 $66,637 23 $306,542 $235,867 30
Other 27,886 15,255 83 88,130 59,279 49
Total revenues 109,957 81,892 34 394,672 295,146 34
Operating expenses
Cost of services
and product
development 42,790 31,118 38 152,982 112,675 36
Selling, general &
administrative 40,892 34,016 20 144,473 119,626 21
Depreciation 2,613 1,381 89 9,064 6,399 42
Total operating
expenses 86,295 66,515 30 306,519 238,700 28
Operating contribution 23,662 15,377 54 88,153 56,446 56
Acquisition-related
& nonrecurring
charges 33,233 8,800 U 34,898 8,800 U
Amortization 1,250 1,161 8 3,815 3,906 (2)
Operating
income (loss) (10,821) 5,416 U 49,440 43,740 13
Net interest income
(expense) 1,098 905 21 3,665 2,271 61
Income (loss) before
min. int. & taxes (9,723) 6,321 U 53,105 46,011 15
Minority Interest 0 (98) (25) (98)
Income (loss) before
taxes (9,723) 6,419 U 53,130 46,109 15
Provision for
income taxes 9,665 3,644 165 36,692 20,948 75
Net income (loss) ($19,388) $2,775 U $16,438 $25,161 U
Net income per
common share ($0.19) $0.03 U $0.17 $0.27 U
Weighted average
shares outstanding 100,919 96,100 98,612 94,762
Excluding acquisition-related
and nonrecurring charges:
Net income $13,401 $7,615 76 $50,548 $30,001 68
Net income per
common share $0.13 $0.08 63 $0.51 $0.32 59
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BALANCE SHEET DATA
(Dollars in thousands) AS OF 9/30
1996 1995 %Change
ASSETS
Total current assets $310,150 $236,228 31
Furniture and
equipment, net 32,818 23,973 37
Intangibles, net 93,144 62,871 48
Other assets 7,996 9,834 (19)
Total assets $444,108 $332,906 33
LIABILITIES & STOCKHOLDERS' EQUITY
Total current liabilities $291,408 $255,209 14
Noncurrent liabilities 2,465 3,446 (28)
Total liabilities 293,873 258,655 14
Total stockholders'
equity 150,235 74,251 102
Total liabilities and
stockholders' equity $444,108 $332,906 33
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SELECTED STATISTICAL DATA
AS OF 9/30
(Dollars in thousands) 1996 1995 %Change
Contract Value $389,969 $303,231 29
Backlog $50,079 N/A F
Client Organizations (1) 7,463 5,500 36
Client Memberships (1) 28,867 19,219 50
(1) 1995 does not include Dataquest information.
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CONTACT: Jennifer Jennifer became a common first name for females in English-speaking countries during the 20th century. The name Jennifer is a Cornish variant of Guinevere, deriving ultimately from Proto-Celtic *windo-seibaro- "white ghost", via Brythonic *wino-hibirā (cf. L. Schlueter Director, Investor Relations Investor relations The process by which the corporation communicates with its investors. (203) 316-6537 jschluet@gartner.com |
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