Gartner Group Reports First Quarter Results; Contract Value Up 37 Percent for the Quarter.STAMFORD, Conn.--(BUSINESS WIRE)--Jan. 20, 1998--Gartner Group, 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 record results for the first quarter of fiscal 1998 ended Dec. 31, 1997. Total revenue grew 30 percent to $162.7 million, compared with $125.4 million for the same period a year earlier. Net income increased 35 percent to $25.6 million (25 cents per diluted share) compared with $19.0 million (19 cents per diluted share) a year earlier. Contract value was $519.7 million, representing a 37 percent increase compared to a year earlier. Excluding the acquisition of Datapro Information Services See Information Systems. in August 1997, contract value increased 31 percent for the period. Contract value is calculated as the 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. value of all advisory, measurement and learning contracts in effect at a given point in time, without regard to the duration of the contracts outstanding at such time. 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 we again met or exceeded our stated goals for growth and quality of earnings. Contract value in our core business - advisory and measurement - turned in healthy year-over-year growth. Moreover, this quarter we enjoyed robust growth in South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. and the Asia/Pacific region, while North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe continue to exceed expectations. Once again, another great quarter." Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: contribution was 26.6 percent, reflecting the company's continuing strategy of leveraging its sales, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. and adding direct costs as revenues are known. "There is tremendous demand for GartnerGroup products and services from companies throughout the world," stated Manny Fernandez Manny Fernandez is the name of at least three people:
Noun the selling of a commodity or service by telephone telesales npl → televentas fpl telesales npl → organization that supports the field sales force and also targets smaller companies. Our customized solutions approach seeks to provide clients with the right products to solve their strategic and tactical information technology needs." Bill Clifford, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of GartnerGroup, stated, "We continue to focus on delivering high-quality products and services and making accurate predictions about IT that shape clients' decisions when defining and deploying their IT strategies." In a recently published survey of IS executives, GartnerGroup was highly ranked in the areas of delivering strategic value, high research quality, product knowledge and, most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , credibility. GartnerGroup also announced the purchase of Norbert Miconnet Information Technology Advisors (NMI (NonMaskable Interrupt) A high-priority interrupt that cannot be disabled by another interrupt. It is used to report malfunctions such as parity, bus and math coprocessor errors. NMI - Non-Maskable Interrupt ), an information technology (IT) benchmarking company based in France. Founded in 1991, NMI markets its products to banking and insurance companies and brings vertical-market expertise to the French-speaking IT market. NMI, along with Bouhot and Le Gendre (acquired in June 1997), adds local content and expertise to Gartner Group's research and advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal offered in the region. As the world's leading authority on IT, GartnerGroup provides clients with a wide range of products and services in the areas of IT advisory services, measurement, research, decision support, analysis, consulting and training. Founded in 1979, with headquarters in Stamford, Conn., GartnerGroup is at the center of a global community of more than 9,300 client organizations served by analysts in 80 locations worldwide. GartnerGroup's unique capabilities and resources help bring clarity to the direction of the world's hottest and most volatile industry. Additional information about the company 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) Quarter Ended Dec. 31 %
1997 1996 Change
Revenues
Advisory and measurement $115,989 $92,090 26
Learning 4,963 4,064 22
Other 41,715 29,213 43
Total revenues 162,667 125,367 30
Operating expenses
Cost of services and
product development 66,403 50,523 31
Selling, general &
administrative 48,995 39,234 25
Depreciation 3,940 2,595 52
Total costs and
expenses 119,338 92,352 29
Operating contribution 43,329 33,015 31
Amortization of intangibles 2,184 1,496 46
Operating income 41,145 31,519 31
Interest income, net 2,202 1,316 67
Income before taxes 43,347 32,835 32
Provision for income taxes 17,703 13,793 28
Net income $25,644 $19,042 35
Diluted earnings per
common share $0.25 $0.19 32
Basic earnings per
common share $0.26 $0.20 29
Diluted weighted average
shares outstanding 104,412 101,951 2
Basic weighted average
shares outstanding 97,838 93,327 5
-0-
GARTNER GROUP, INC.
SELECTED BALANCE SHEET DATA
(Dollars in thousands) As of Dec. 31 As of Sept. 30 %
1997 1997 Change
ASSETS
Total current assets $439,356 $425,608 3
Property and equipment,
net 44,899 44,102 2
Intangibles, net 136,304 132,195 3
Other assets 56,081 43,407
Total assets $676,640 $645,312 5
LIABILITIES & STOCKHOLDERS'
EQUITY
Total current liabilities $338,087 $372,183 (9)
Noncurrent liabilities 3,933 3,259 21
Total liabilities 342,020 375,442 (9)
Total stockholders' equity 334,620 269,870 24
Total liabilities and
stockholders' equity $676,640 $645,312 5
SELECTED STATISTICAL DATA As of Dec. 31 %
(Dollars in thousands) 1997 1996 Change
Contract value $519,679 $379,962 37
Client organizations 9,321 7,411 26
CONTACT: Jennifer L. Schlueter Vice President, Investor Relations Investor relations The process by which the corporation communicates with its investors. (203) 316-6537 jennifer.schlueter@gartner.com |
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