News notes
Simmons Research, Fort Lauderdale, Fla., has been awarded a patent by the United States Patent and Trademark Office for a process underpinning its Television BehaviorGraphics. The patent was awarded for the system of integrating information from disparate databases for the purposes of predicting consumer behavior. It protects Simmons’ intellectual property rights to the database integration processes developed for Television BehaviorGraphics, Movie BehaviorGraphics, Shopper BehaviorGraphics and the integration of other proprietary databases with Simmons National Consumer Study.
Milwaukee research firm Market Probe celebrated its 30th anniversary in May.
Fieldwork International, the field division of the health care arm of research agency Synovate, unveiled new look in May with a complete re-branding.
Sigma: Research Management Group, Cincinnati, is celebrating its 25th anniversary during 2006.
Acquisitions/transactions
Research firm Technomic has acquired the practice of Mount Vernon Strategies (MVS). MVS specializes in providing marketing research and strategic consulting services to private equity firms and consumer-branded companies. MVS President Charles Collier has joined Technomic as vice president. He will split his time between Technomic’s headquarters in Chicago and the MVS offices in Boston.
Alliances/strategic partnerships
Stamford, Conn., research firm InsightExpress and Denver-based research company iModerate announced that InsightExpress will become an authorized provider of iModerate’s one-on-one interview tool. The agreement joins InsightExpress’ quantitative survey platform with iModerate’s qualitative research technology.
Harris Interactive Service Bureau, Rochester, N.Y., has formed a strategic alliance with Oak Brook, Ill.-based DM2-DecisionMaker, a division of Reed Business Information, to co-develop new online expert decision-maker panels.
Association/organization news
Betul Khan, managing director of Millward Brown Turkey, has been elected president of the Turkish Market Research Association for a two-year term.
Awards/rankings
Norman Nie, chairman and co-founder of SPSS Inc., Chicago, has received the Lifetime Achievement Award from the American Association of Public Opinion Research for his work in survey research tools, methodology and his award-winning books.
Portland, Ore., research firm Doxus ranked No. 4 on Media Inc.’s Top Market Research Companies List. Market research firms in the Northwest were ranked by 2005 development revenue, as reported in surveys submitted to Media Inc.
G & S Research, Carmel, Ind., took third place in the inaugural Best Places to Work in Indiana program in the small-to-medium-sized companies category (comprised of companies employing between 25 and 199 people). The Best Places to Work in Indiana program was created by the Indiana Chamber of Commerce in partnership with the Indiana State Council of the Society of Human Resource Management and Best Companies Group. Rankings were based on employer reports of company policies, practices and demographics as well as employee surveys.
New accounts/projects
CBS Radio has entered into a seven-year agreement for New York-based Arbitron Inc.’s Portable People Meter radio ratings when the new audience ratings technology is deployed in the 35 CBS Radio markets encompassed in Arbitron’s previously announced PPM rollout plan. RAJAR, the industry radio ratings consortium in the United Kingdom, has also selected the Portable People Meter system for an electronic radio and television audience measurement panel in London. And radio station WBEB-FM has signed a four-year contract for a Portable People Meter-based audience ratings service in Philadelphia. The contract anticipates a start date of January 2007.
Vancouver, B.C., research firm Vision Critical announced that Toronto marketing firm Lang Marketing Network will use Vision Critical’s custom panel software to conduct research for its clients.
The AGF, which represents the German TV stations of ARD, ProSiebenSat.1, RTL and ZDF, has commissioned GfK Fernsehforschung (TV research) to gradually replace the existing metering technology from mid-2007 onwards. The new technology facilitates the collection of data on future TV usage, which results from technological change in terms of reception and the introduction of new ancillary equipment.
The German TV research contract, which runs from 2005 to 2011 with an extension option until 2013, was supplemented by a contract for new metering technology. The AGF has commissioned GfK Fernsehforschung to switch to the new metering technology from mid-2007 onwards. This enhanced contract will be valid from 2007 to 2011 and also contains an extension option until 2013. The total volume now amounts to around EUR 100 million. In addition to the existing measurement of analog TV, the new agreement covers all digital platforms, such as DVB-T, DVB-C and DVB-S. The use of traditional video recorders will continue to be measured, but will be supplemented by the metering of recording devices including personal video recorders and DVD recorders.
The new metering device is called Telecontrol score and is being developed and produced by GfK’s Swiss subsidiary, Telecontrol AG, which also produced the predecessor equipment. TC score comprises a centralized terminal which stores all measured data and several additional metering modules that can be added as required. These can be installed in the centralized terminal or located in additional equipment.
New companies/new divisions/ relocations/expansions
MarketTools has moved to 150 Spear St., Suite 600, San Francisco, Calif., 94105-5119. Phone 415-957-2200. Fax 415-957-2181.
U.K.-based Operations Centre has changed its name to Kantar Operations.
Millward Brown has opened a new office in Geneva, Switzerland, and tapped Sana Carlton to lead it.
Company earnings reports
Menlo Park, Calif.-based Knowledge Networks announced record quarterly revenue of $9.4 million for Q1 2006, surpassing a high set in Q4 2005. This year’s first-quarter revenue represents 34 percent growth over the same quarter one year ago, as well as the company’s second consecutive quarter of positive net income.
Norway-based FIRM reported a 24 percent revenue increase in first-quarter 2006 to $4.8 million, up from $3.9 million in the corresponding quarter of 2005. Adjusted for currency fluctuations the growth rate was 29 percent. Operating results (EBIT) for the first quarter in 2006 were $334,000 compared to $154,000 in the corresponding quarter of 2005. The cash flow from operations was $2.5 million in the first quarter of 2006.
In the first quarter of 2006, Paris-based Ipsos generated revenues of EUR 188 million, a 31 percent increase on the first quarter 2005. It was the firm’s strongest quarterly growth in the past five years. The company attributed the performance to good news on three fronts. The currency effect was very positive in early 2006, contributing 7.1 percent of overall revenue growth. Changes in the scope of consolidation also had a very positive impact, adding 14.6 percent of growth, following the integration of MORI in the U.K., Understanding Unlimited in the U.S. and Camelford Graham in Canada. This performance reflects the size of the newly integrated companies and their volume of business during the first quarter. And, as in fourth-quarter 2005, organic growth held above 9 percent.
In the first three months of 2006, Germany-based GfK Group reported a rise in sales of 54.6 percent from EUR 160.8 million to EUR 248.5 million. Adjusted operating income climbed 51.3 percent from EUR 14.0 million to EUR 21.1 million. The margin, that is the ratio of adjusted operating income to sales, stood at 8.5 percent and, despite the first-time consolidation of NOP World, the margin was almost on a par with the prior year’s figure of 8.7 percent in the first quarter. At the end of April, GfK had already recorded 58.4 percent of its target sales for 2006. This is slightly down on the prior year.
SPSS Inc., Chicago, announced net revenues for the quarter ended March 31, 2006 of $62.2 million, an increase of 8 percent from $57.5 million in the first quarter of 2005. New license revenues were $29.9 million, up 15 percent from $26.0 million in the 2005 first quarter. Diluted earnings per share (EPS) were $0.24, an increase of 85 percent from $0.13 for the same period last year. 2006 first-quarter EPS includes a $0.03 charge for the expensing of share-based compensation. Operating income for the first quarter of 2006 increased to $7.0 million or 11 percent of total revenues, from $4.0 million or 7 percent of total revenues in the same quarter last year. Cash totaled $100.4 million as of March 31, 2006, up from $84.4 million as of December 31, 2005.
Greenfield Online Inc., Wilton, Conn., reported total net revenue of $21.5 million for the first quarter of 2006 as compared with $15.3 million for the prior year period. Total gross profit was $16.0 million or 74.2 percent of revenues for the first quarter of 2006, as compared with $10.8 million or 71.0 percent of revenues in the prior year period. Operating income was $1.3 million for the first quarter of 2006 or 6.1 percent of revenue, including the $0.17 million restructuring charge, as compared to $2.5 million or 16.7 percent of revenue for the prior year period.
Net income for the first quarter of 2006 was $0.84 million, as compared with $2.5 million for the prior year period. Cash flow from operations was $5.0 million for the first quarter of 2006 as compared to $2.3 million for the prior year period. For the first quarter of 2006, adjusted EBITDA excluding restructuring charges, was $5.2 million or 24.2 percent of revenues, as compared to $4.0 million or 26.0 percent of revenue for the prior year period. Operating free cash flow, a non-GAAP financial measure, was $4.2 million for the first quarter of 2006 as compared to $1.6 million for the prior year period.
In results for the first quarter ended March 31, 2006, NetRatings Inc., New York, reported revenues of $18.3 million for the first quarter of 2006, an 11 percent increase over revenues of $16.4 million in the first quarter of 2005. Net loss for the first quarter of 2006 was ($255,000), or ($0.01) per share, on approximately 34.7 million shares. This compares with a net loss of ($1.6) million, or ($0.05) per share, in the first quarter of 2005, on approximately 35.8 million shares. Related to the company’s adoption of SFAS 123(R) on January 1, 2006, NetRatings’ first quarter 2006 results included stock option compensation expense of $364,000, or $0.01 per share, which was offset by the one-time benefit of the cumulative effect of a change in accounting principle - also related to the adoption of SFAS 123(R) on January 1, 2006. On an EBITDA basis the company earned $1 million, or $0.03 per share, during the first quarter of 2006.
At Harris Interactive, Rochester, N.Y., revenue for the third fiscal quarter ended March 31, 2006 was $52.2 million, up 3 percent when compared with $50.9 million of revenue reported for the same period a year ago. U.S. revenue was $42.4 million, up 9 percent from the $39.1 million of revenue reported a year ago. European revenue was $9.8 million, down $2.0 million (including $0.8 million of unfavorable foreign exchange rate differences), or 17 percent from the $11.8 million of revenue reported for the third fiscal quarter of 2005.
Global Internet revenue for the third fiscal quarter of 2006 was $31.2 million, up 8 percent compared to the $28.9 million reported for the same period a year ago. U.S. Internet revenue was $28.0 million, up 9 percent when compared to $25.8 million in the third fiscal quarter of 2005. European Internet revenue was $3.2 million, up 3 percent from the $3.1 million of Internet revenue reported for the same quarter last year. Internet revenue comprised 60 percent of total revenue, 66 percent of the U.S. revenue and 32 percent of the European revenue for the third fiscal quarter of 2006, versus 57 percent, 66 percent and 26 percent respectively last year.
Operating income for the third fiscal quarter of 2006, which included $1.0 million of severance and non-cash stock-based compensation expenses, was $4.1 million, or 8 percent of revenue, up 274 percent when compared to operating income of $1.1 million, or 2 percent of revenue, for the same period a year ago. Operating income for third fiscal quarter 2005 did not include any stock-based compensation expense, but did include pre-tax restructuring charges of $1.1 million.
Net income for the third fiscal quarter of 2006 was $2.5 million, or $0.04 per diluted share, as compared with a net loss of $2.7 million, or $0.04 per diluted share for the same period a year ago.
Revenue for the first nine months of fiscal 2006, which ended on March 31, 2006, was $156.0 million, up 9 percent when compared with $142.8 million of revenue reported for the same period a year ago. U.S. revenue for nine months was $123.2 million, up 14 percent from $107.6 million of revenue reported for the same period a year ago. European revenue for the nine month period was $32.8 million, down $1.8 million (including $1.7 million of unfavorable foreign exchange rate differences), or 5 percent when compared with $34.6 million of revenue reported for the same period a year ago.
Global Internet revenue for the first nine months of fiscal 2006 was $91.5 million, up 16 percent from Internet revenue of $78.8 million reported for the same period a year ago. U.S. nine-month fiscal 2006 Internet revenue was $82.0 million, up 16 percent when compared to the $70.6 million reported for the nine months of fiscal 2005. European Internet revenue for the first nine months of 2006 was $9.5 million, up 17 percent from the $8.1 million of Internet revenue reported for the same period a year ago. For the first nine months of fiscal 2006, Internet revenue comprised 59 percent of total revenue, 67 percent of U.S. revenue and 29 percent of European revenue, versus 55 percent, 66 percent and 24 percent respectively last year.
Operating income for the first nine months of fiscal 2006, which included $2.4 million of severance and non-cash stock-based compensation expenses, was $10.1 million, or 6 percent of revenue, as compared to operating income of $6.2 million, or 4 percent of revenue for the same period a year ago. Operating income for the first nine months of 2005 did not include any stock-based compensation expense, but did include pre-tax restructuring costs of $1.1 million.
Net income for first nine months of 2006 was $6.1 million, or $0.10 per diluted share, up significantly when compared with net income of $0.4 million, or $0.01 per diluted share reported a year ago.