Industry researcher, Harris Interactive, Inc. (NASDAQ: HPOL) has seen steady growth in its share price in the days following the company’s recent annual report in spite of a 23 percent decline in annual revenue compared to the previous fiscal year.
The Rochester-based company did however manage to generate $6.9 million in adjusted EBITDA during fiscal year 2009, thanks in large part to aggressive cost cutting initiatives made throughout the year.
“As a result of the proactive cost reduction actions we took this past December and March to bring our cost structure in line with our revenues, we reduced expenses by nearly $22 million on an annualized basis,” said Harris Interactive, CEO, Kimberly Till.
On a consolidated basis, Harris’ revenues were $184.3 million for fiscal 2009, a decrease of $54.4 million or 23 percent when compared to fiscal 2008. The company’s operating loss for fiscal 2009 was $56.4 million compared to an $84.6 million operating loss for 2008.
Among the highlights was an 82 percent increase in US dollar revenue from Asia, compared to the previous fiscal year and a $17.4 million reduction in SG&A expenses, a $2.1 million decrease in stock based compensation expense driven by departures of several senior executives, a $2 million decrease in travel and related expenses driven by our continued focus on controlling costs and a $900,000 decrease in office rent driven by space reductions taken during fiscal 2008 and 2009.
According to Till, Harris Interactive is focused on four key components of its strategy in fiscal 2010: deliver superior client insights and service; leveraging technology; creating a more seamless global account program; and development of new products and services.
“While we had a difficult year in the face of a challenging market, I am very pleased with a number of key initiatives we accomplished during the year, including assembling a very strong management team across key areas of the business and investing in business development and client outreach to rebuild revenues,” said Till.