News notes
London-based Aegis Research, a division of the Aegis Group plc, has chosen Synovate as the new brand name for its 43-conntry research network. The full transition to Synovate is expected to be complete by January 1, 2003. In the interim, the individual companies making up the network will retain their original names while endorsing the new brand. In the U.S., Aegis Research companies include Market Facts Inc., Market Facts of Canada, BAIGlobal, Strategy Research Corporation, Tandem Research Associates, Marketing Strategy & Planning, Motoresearch, MarkTrend, Copernicus, and IMR Research Inc.
Opinion Research Corporation, Princeton, N.J., has been named one of Fortune Small Business’s 100 Fastest- Growing Publicly Held Small Businesses in America for the second consecutive year. Compiled with help from Zachs Investment Research, the FSB 100 is based on three criteria: earnings growth, revenue growth, and stock performance over the past three years.
Hy Mariampolski of QualiData Research, New York, and Pat Sabena of Sabena Qualitative Research Services, Westport, Conn., conducted two three-day workshops on qualitative research practices and techniques in Beijing and Shanghai in September. The workshops were hosted by the China Market Research Association and the Pan-Asia Market Research Institute.
Arbitron Inc., New York, will expand its Portable People Market trial in the United States. The company plans to equip a new and separate panel of approximately 1,000 consumers in the Philadelphia Radio Metro Survey Area that will allow direct comparisons to the radio station audience estimates being produced by the existing panel of consumers in the current PPM market trial. Arbitron also announced that it agrees in principle with the radio industry’s request for a second Portable People Meter market trial in one of the Top 25 Hispanic markets. The company noted that fielding this second PPM trial market would be contingent on the formation of the proposed joint venture with Nielsen Media Research. The company also reaffirmed its commitment to a thorough examination of radio listening, diary-keeping behavior and PPM compliance during the morning drivetime period and other radio dayparts.
Harris Interactive, Rochester, N.Y., has announced plans to consolidate and realign its various operations in the U.K. to operate under the new brand name HI Europe. HI Europe, a wholly-owned subsidiary of Harris Interactive, will provide integrated, consultative market research, including Internet-based research to its clients.
Research Data Design, Inc. (RDD), Portland, Ore., has been named one of the Top 100 Fastest Growing Private Companies in Oregon by The Portland Business Journal. RDD placed 57th on this year’s list for achieving a 70 percent revenue increase between 1999 and 2001. To be eligible for the Fastest Growing Private Companies list, companies must demonstrate significant revenue growth for three straight years, be headquartered in Oregon, and have been in business for three years. PriceWaterHouse Coopers verified all results.
Fort Washington, Pa.-based Marketing Systems Group is celebrating its 15th year in business.
Market Trends, Inc., Seattle, is celebrating 20 years in business.
Acquisitions
In a deal announced too late for inclusion in our July/August issue, comScore Networks, Inc., Reston, Va., and Jupiter Media Metrix, Inc., New York, reported in June that comScore has acquired certain assets of the Media Metrix Intemet Audience Measurement service in the United States and Canada. ComScore simultaneously announced the establishment of its Media Metrix Division, which will sell and service comScore’s portfolio of Interact audience measurement services. ComScore’s Media Solutions Division will be merged into the Media Metrix Division. The acquisition was completed through a cash transaction of approximately $1.5 million. A number of Jupiter Media Metrix employees will join comScore’s Media Metrix Division, and comScore will establish a New York City office to accommodate staff currently employed in that location.
Milpitas, Calif., Internet audience measurement firm NetRatings has agreed to acquire a controlling interest in France-based Internet audience behavior measurement firm NetValue. Following its acquisition of the controlling interest, NetRatings will initiate a tender offer to acquire the remaining outstanding shares of NetValue. In the agreement signed by NetRatings, NetValue and NetValue’s majority shareholders, NetRatings acquired a 52 percent ownership position in NetValue through the direct purchase of 4,603,069 shares of common stock from majority shareholders at EUR 2 per share. Payment was to be approximately 80 percent cash and approximately 20 percent NetRatings’ common stock, evaluated on the basis of the weighted average U.S. dollar closing price for NetRatings common stock as quoted for the 10 trading days preceding August 2. Upon the acquisition of the controlling interest, NetValue’s board was to be reconstituted to provideNetRatings with majority control. Lennart Brag will continue to serve as chairman of the board of directors.
Taylor Nelson Sofres has acquired Sweden-based research firm Svenska Gallup AB. Founded in 1941, Svenska Gallup operates in two locations in Sweden and employs a staff of 14.
Separately, Taylor Nelson Sofres has acquired the business and assets of Evaliant Media Resources LLC, a provider of online advertising data and analysis tools. The business will be combined with the online ad tracking division of TNS CMR. Evaliant employs 17 people and the senior management team will remain with the business.
New York-based software firm MetaSource Group has acquired PFA Research, a U.K.-based business-tobusiness research firm.
Germany-based GfK Group has taken over the activities of I+G Nürnberg and its subsidiaries GPI Kommunikationsforschung and I+G Suisse from the existing joint venture with NFO Europe, called I+G Gesundheitsforschung, which was terminated on June 30. Business operations will continue under the name GfK HealthCare.
Separately, wholly-owned GfK subsidiary Intomart GfK Belgium NV has acquired 51 percent of the shares in Significant, a Belgian research company.
London-based Aegis Research has acquired Sample Surveys Limited, a U.K. research firm. Sample Surveys is the second addition to Aegis’s research acquisitions in the U.K., the first being Pegram Waiters last year.
Paris research firm Ipsos has signed a letter of intent to acquire F-Squared, a custom research company operating in Central and Eastern Europe. According to this agreement, Ipsos will acquire 100 percent of F-Squared’s holdings.
Alliances/strategic partnerships
Martin Hamblin GIN Inc., the U.S.-based health care operation of international research agency GfK, has signed an agreement to partner with New York-based WebSurveyResearch and gain access to WebSurveyMD, a dedicated Intemet panel of physicians and other health care professionals.
ComScore Networks, Inc. and CMR jointly announced the extension of their strategic alliance through their respective acquisitions of Media Metrix and Evaliant. In June, Taylor Nelson Sofres (TNS), parent company of CMR, acquired the business and assets of Evaliant Media Resources LLC, a provider of online advertising data. Media Metrix now operates as the comScore Media Metrix division of comScore Networks; Evaliant now operates as a division of CMR/TNS.
Following these acquisitions and subsequent developments, including the recent introduction of the next-generation comScore Media Metrix 2.0 audience measurement service, comScore and CMR have elected to expand their alliance to include several new elements. As part of this expanded alliance, comScore Media Metrix will co-market Evaliant services to marketers across a range of industries. CMR will also comarket new comScore Media Metrix products. Further, CMR and comScore will collaborate to integrate comScore Media Metrix audience measurement data with CMR’s Evaliant ad tracking data to provide the convenience of uniform reporting to clients who purchase both services.
Arbitron Inc. and IBOPE Media Information have announced an agreement to cooperate in the testing of Arbitron’s Portable People Meter (PPM) technology in Latin America. The agreement will give IBOPE access to operational data from Arbitron’s U.S. market trial. IBOPE and Arbitron will work jointly with radio and television broadcasters, advertisers, and advertising agencies to help them evaluate the PPM technology. The two companies will also cooperate in an effort to introduce the PPM into a number of Latin American countries.
Association/organization news
The European Society for Opinion and Marketing Research (ESOMAR) has for the first time appointed two representatives with joint responsibilities in the U.S. They are Daphne Chandler and Michael Kenyon. Together they will represent ESOMAR in the U.S., with Chandler active east of the Mississippi and Kenyon west of the Mississippi. Kenyon is vice president- consulting at Gartner Primary Research, Portland, Ore. Chandler is president/partner of Global Focus, an Oyster Bay, N.Y., research firm.
Canada’s Professional Marketing Research Society (PMRS) has announced its support of the Principles of Marketing Research certificate program, which was developed by the Marketing Research Association in conjunction with the University of Georgia Center for Continuing Education. "PMRS currently offers over 40 courses across Canada for its members and others with an interest in market research. PMRS is pleased to be able to include the Principles of Marketing Research program as another way for members to take an active role in the education process," says PMRS President Cam Davis.
The Southwest Chapter of the Marketing Research Association has announced the recipients in its third annual scholarship program. The program, which offers monetary awards to members and employees of chapter members, was developed to encourage and assist educational pursuits among those employed in the market research industry. Coursework eligible for assistance was left broad to allow applicants to enhance or develop skills primary as well as ancillary to market research. Education could include such topics as software applications, moderator training, writing techniques, and the Principles of Marketing Research, sponsored by the national MRA. The eight 2002 Southwest Chapter MRA Scholarship Award recipients are: Jennifer Adamson, Saurage Research, advanced authoring, The Art Institute of Houston, $500 award; Lisa Benson, CCS Research, computer programming and problem solving, Pima Community College, $500; Donald Carroll, Clearwater Research, access programming, Executrain, $500; Daniel Hernandez, Galloway Research, Principles of Marketing Research course, University of Georgia, $500; Kamilah Garcia, Galloway Research, principles of management, Education Direct, $500; Aaron Lerwill, Discovery Research, business marketing, Harcourt Learning Direct, $500; Dr. Gayla Smutny, Clearwater Research, focus group moderator training, Riva Training Institute, $500; Louie Valdez, WestGroup, statistical elements, Arizona State University, $378.
Awards
IMS Health, Fairfield, Conn., announced that Graham Lewis, vice president of IMS Consulting, has received the Mary Clement Lifetime Achievement Award from the Pharmaceutical Business Intelligence and Research Group (PBIRG). The award, named in honor of researcher Mary Clement, a respected PBIRG member who died of cancer last year, was presented to Lewis by Nancy Wilkerson, PBIRG vice president of programs and education at the agency’s recent annual conference in San Antonio, Texas.
Clementine, the data mining product SPSS Inc., Chicago, was ranked as the No. 1 data mining tool used by the readers of KDnuggets News, a data mining and knowledge discovery industry e-newsletter.
Eli Lilly and Company presented Rochester, N.Y.-based Harris Interactive with a 2002 Global Supplier Award. Harris Interactive is the first market research company to be issued this award by Liliy. The company has been recognized for its work in consulting, designing, and implementing market and clinical research studies. The award recognizes suppliers for performance in quality, speed and service for support. Lilly selected 18 suppliers as honorees for 2002 among its global supplier base.
New accounts/projects
The Center of Automotive Research contracted with Birmingham, Mich.-based Amplitude Research, Inc. to conduct Web-based marketing research to assess the e-business readiness of the automotive supply chain. The research was sponsored by SupplySolution, Inc., a supply chain
execution firm.
Procter & Gamble has signed a three-year global license to use SPSS MR’s Dimensions market research software, including the SPSS MR Data
Model for handling survey data. The agreement follows a technology review by Procter & Gamble’s Consumer and Market Knowledge (CMK) division, in which potential solutions from both established and emerging players were considered.
New York-based Arbitron Inc. has signed contract extensions with Infinity Broadcasting Corporation and with ABC Radio, which gives the firms’ stations access to quarterly radio ratings up to the release of the Spring 2003 radio survey as well as access to additional services currently provided.
Simmons Market Research Bureau, New York, has signed a long-term service agreement with Omnicom Group, Inc. Included in the Omnicom agreement are OMD, a media specialist company, PttD Network and global agencies BBDO, DDB, and TBWA.
Separately, Hachette Filipacchi Media U.S., Inc. and Simmons Research Bureau signed a service agreement providing 18 Hachette magazines and seven special interest publications with access to the Simmons National Consumer Study.
New companies/new locations
Sharpen the Focus Institute, a qualitative research training facility, has been created as a spin-off of Executive Solutions, a Syosset, N.Y., research firm. It will be headed by Elizabeth Hurlow-Hannah.
Star Data Systems in Chicago has moved to new offices at 401 South Milwaukee Avenue, Suite 170, Wheeling, Ill., 60090.
Denver Qualitative Research Solutions has changed its name to INgather research.
Sunbelt Research Associates, Jupiter, Fla., has changed its name to SRA Research Group, Inc.
Dan Lee has founded EyeQ Research, a firm focusing on Web site testing and analysis, at Fontana Center, 4928 S. 79th East Avenue, Tulsa, Okla., 74145.
Oliver Karp has opened Karp Data Services, a data processing firm, at 4426 Ensenada Dr., Woodland Hills, Calif., 91364.
Kissel Consulting Group has moved to 3404WoolseyDrNe, Chevy Chase, Md., 20815-3923.
Millward Brown Colombia has opened as a fully-owned company headed by Liliana Baena. The company will serve the Andina region, which is made up of Ecuador, Colombia, Peru, and Venezuela. Millward Brown’s former licensee, Market Research de Colombia, will continue to be the fieldwork for the next three months.
Focus on Food, a Norcross, Ga., and testing of menus and food products, has been opened by Ron Marks at 6679 Peachtree Industrial Blvd., Suite M, Norcross, Ga., 30092.
Company earnings reports
Opinion Research Corporation, Princeton, N.J., announced results for the second quarter and first half of fiscal 2002. For the second quarter of 2002, revenues were $44.8 million compared to $45.2 million in the second quarter of 2001. EBITDAwas $3.9 million compared to second quarter 2001 EBITDA of $4.2 million. Operating income for the current quarter was $2.8 million compared to $2.1 million in the second quarter of 2001. Net income for the current quarter was $977,000 compared to second quarter 2001 net income of $354,000. For the second quarter of 2002, diluted earnings per share were $0.16 compared to diluted earnings per share of $0.06 in the comparable period last year. Compared to December 31,2001, the company’s borrowings have been reduced by $2.2 million during the first six months of 2002.
For the first half of 2002, revenues were $87.2 million compared to $91 million in the first haft of 2001. EBITDA for the first half of 2002 was $7.5 million compared to $9.6 million in the first half of last year. Operating income for the first six months of 2002 was $5.3 million compared to $5.4 million in the first six months of 2001. First half 2002 net income was $1.8 million, or $0.29 per diluted share, excluding the cumulative effect of a change in accounting principle in the first quarter resulting from the adoption of FASB Statement 142. After the change, first haft 2002 net income was $1.5 million, or $0.24 per diluted share. For the first haft of 2001, net income was $1.4 million, or $0.24 per diluted share.
NetRatings, Inc., Milpitas, Calif., announced revenues for the second quarter of 2002 and for its second quarter ended June 30 of $7.3 million, up 69 percent from $4.3 million reported in the first quarter. Pro forma net loss for the second quarter of 2002 was $3.3 million, or a loss of ($0.10) per share on approximately 32.6 million weighted shares outstanding. This compares with pro forma net loss for the first quarter of 2002 of $2.3 million, or aloss of ($0.07) per share on approximately 32.9 million shares outstanding. (The pro forma results exclude the amortization of non-cash stock-based compensation and intangible assets, and one-time charges.) In accordance with generally accepted accounting principles (GAAP), net loss for the second quarter of 2002 was $6.5 million, or a loss of ($0.20) per share. This compares with a net loss of $14.6 million, or a loss of ($0.45) per share in the first quarter of 2002. (The GAAP results include the amortization of noncash stock-based compensation and intangible assets, and one-time charges.)
Second quarter gross margins were 47 percent, up 9 percentage points from the 38 percent gross margins the company reported in the first quarter. The improvement in gross margins is due to the effect of the recent acquisitions and management’s ongoing cost control program.
IMS Health, Fairfield, Conn., reported diluted earnings per share from recurring operations of $0.23 for the quarter ended June 30, up 5 percent from last year’s second quarter. Net income from recurring operations was $66.0 million, essentially unchanged year over year. Recurring results exclude certain pre-tax gains and charges totaling $6.2 million. During the 2002 second quarter, revenue totaled $353 million, up 5 percent constant dollar year over year and 6 percent on a reported basis. Operating income was $105 million, down 2 percent on a reported and constant-dollar basis from the year-earlier quarter. Net income of $66 million was essentially unchanged from the same period last year. Diluted earnings per share was $0.23 in the 2002 second quarter, compared with $0.22 per share in the second quarter of 2001. IMS Health’s first-haft 2002 revenue rose to $684.4 million, up 5 percent constant dollar and 3 percent on a reported basis. This compares with revenue of $663.9 million in the 2001 first half. Operating income for the first six months of 2002 was $196.3 million, down 4 percent on a reported basis and unchanged on a constant-dollar basis from the year-earlier period. Net income rose 2 percent to $124.8 million, or $0.43 per share, compared with $122.2 million, or $0.41 per share, in the first half of 2001.
St. Petersburg, Fla.-based Catalina Marketing Corporation today reported first quarter results for the period ended June 30, including a revenue increase for the quarter of 16 percent to $109.1 million, compared to $94.4 million in the first quarter of the prior fiscal year. Quarterly net income was $10.7 million, or $0.19 per diluted share, versus $9.4 million, or $0.16 per diluted share, for the comparable prior year period. Revenue in the company’s research operations, which are conducted by Alliance Research, was approximately equal to revenue in the first quarter of the prior year. Catalina Marketing Research posted a nominal profit this quarter.
For the second quarter 2002, New York-based Arbitron Inc. reported revenue of $56.5 million, an increase of 12.4 percent over revenue of $50.3 million during the second quarter of 2001. Earnings before interest and taxes (EBIT) for the quarter were $15.0 million, compared with EBIT of $12.8 million during the comparable period last year. Net income for the quarter was $6.6 million, compared with $4.7 million for the second quarter of 2001. Cost and expenses for the quarter increased by 11.0 percent, from $40.4 million in 2001 to $44.8 million in 2002. Interest expense declined $1.0 million from 2001 as a result of significant reductions in debt. Net income per share for the quarter was $0.22 (diluted), compared with $0.16 per share (diluted) during the comparable period last year. Effective January 1, 2002, the company discontinued the amortization of goodwill in accordance with generally accepted accounting principles, Had the company been required to adopt this accounting effective as of January 1, 2001, net income and net income per share (diluted) for the three months ended June 30, 2001 would have been $5.1 million and $0.18, respectively.
For the six months ended June 30, 2002, revenue was $122.4 million, an increase of 10.8 percent over the same period last year. EBIT was $42.6 million, compared to $40.1 million in 2001. Net income for the six months was $20.9 million or $0.70 per share (diluted), compared with $21.0 million or $0.72 per share (diluted) last year. Had the discontinuation of amortization of goodwill been in effect in 2001, net income and net income per share (diluted) for the six months ended June 30, 2001 would have been $21.9 million and $0.75, respectively.
Harris Interactive, Rochester, N.Y., reported positive quarterly net eamings for the first time as a public company as it released its financial results for the fiscal 2002 fourth quarter and for the entire fiscal 2002 year. The company reported total revenue of $29.8 million for its fiscal fourth quarter ended June 30, versus $28.3 million in the fiscal third quarter and $17.7 million a year ago, representing increases of 5 percent and 68 percent respectively. Revenue for the entire fiscal year was $100.0 million, up 66.4 percent from the $60.1 million posted the previous fiscal year. Intemet revenue for the year was $40.6 million - up 25 percent versus fiscal 2001.
Net income for the fourth quarter was $169,000 ($0.00 per share), an improvement from a net loss of $1.2 million ($0.02 per share) in the third quarter and a net loss of $4.5 million ($0.13 per share) a year ago. Net loss for the 2002 fiscal year was $14.8 million or ($0.32) per share, compared to a net loss of $24.0 million or ($0.70) per share a year ago.
Paris-based Ipsos Group reported revenues for the first half of 2002 of EUR 244.5 million, a 13 percent increase over the same period last year. On a like-for-like perimeter and exchange rate basis, Ipsos revenues increased by 7.3 percent during the first six months of 2002. For the second quarter of 2002 alone, consolidated revenues stood at EUR 136.1 million, a 12 percent increase. Organic growth accounts for 7.7 percent, slightly higher than during the first quarter (7 percent).
Growth has been satisfactory in all Ipsos sectors of specialization, except for media research (which accounts 9 percent of total Group revenues), which is still negatively affected by the drop in advertising revenues among media companies. The firm’s advertising research division (23 percent of total revenues) had an organic growth increase of 15 percent. The marketing research (53 percent of total revenues) and opinion and social research divisions (6 percent of total revenues) respectively increased their organic growth by 7 percent and 9 percent.
In the first six months of 2002, Germany-based GfK Group increased its sales by 17.7 percent from EUR 225.3 million in the same period in the previous year to EUR 265.1 million. EBIT including income from participations rose from EUR 8.5 million to EUR 19.1 million, while consolidated total income before minority interests increased from EUR 2.6 million to EUR 10.2 million.