SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): November 20, 2007

FORRESTER RESEARCH, INC.

(Exact name of registrant as specified in its charter)

Delaware		000-21433		04-2797789
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification Number)

400 Technology Square
Cambridge, Massachusetts 02139

(Address, of principal executive offices, including zip code)

(617) 613-6000

(Registrant’s Telephone number including area code)

N/A

(Former Name or Former Address, if Changes since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Page 1 of 5
Exhibit Index appears on Page 4

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

     The information contained in this current report on Form 8-K is furnished pursuant to Item 2.02 of Form 8-K “Results of Operations and Financial Condition”. This information and the exhibits hereto are being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of, or otherwise regarded as filed under, the Securities Exchange Act of 1934, as amended. The information contained in this report shall not be incorporated by reference into any filing of Forrester Research, Inc. with the SEC, whether made before or after the date hereof, regardless of any general incorporation language in such filings.

     On November 19, 2007, Forrester Research, Inc. (the “Company”) issued a press release announcing its financial results for the quarter and nine months ended September 30, 2007. On November 20, 2007, the Company issued another press release reporting that the consolidated financial statements appended to the original press release contained an error in the consolidated statements of cash flows for the nine months ended September 30, 2006. A copy of the November 20, 2007 press release, to which the corrected consolidated statements of cash flows is appended, is included as an exhibit to this Current Report on Form 8-K.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

     (c) Exhibits

99.1 Press Release dated November 20, 2007

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: November 20, 2007

Exhibit Index

Exhibit				Description		Page
	99.1			Press Release dated November 20, 2007			5

EXHIBIT 99.1

		FOR IMMEDIATE RELEASE

Forrester Research Corrects Third-Quarter 2007 Financial Results Press Release

Cambridge, Mass., November 20, 2007 . . . Forrester Research, Inc. (Nasdaq: FORR) today reported a correction to the consolidated statements of cash flows included in its November 19, 2007 press release announcing financial results for the third quarter ended September 30, 2007. The consolidated statement of cash flows for the nine months ended September 30, 2006 contained a mathematical error, resulting in inaccurate net cash provided by operating activities and accordingly, in the net increase in, and end of period, cash and cash equivalents. The consolidated statements of income and balance sheets are not affected.

The consolidated statements of income, consolidated balance sheets, and corrected consolidated statements of cash flows are attached.

About Forrester Research

Forrester Research (Nasdaq: FORR) is an independent technology and market research company that provides pragmatic and forward-thinking advice about technology’s impact on business and consumers. For 24 years, Forrester has been a thought leader and trusted advisor, helping global clients lead in their markets through its research, consulting, events, and peer-to-peer executive programs. For more information, visit www.forrester.com.

Michael Doyle		Karyl Levinson
Chief Financial Officer		Vice President, Corporate
		Communications
Forrester Research, Inc.		Forrester Research, Inc.
+1 617/613-6000		+1 617/613-6262
mdoyle@forrester.com		press@forrester.com

^© 2007, Forrester Research, Inc. All rights reserved. Forrester is a trademark of Forrester Research, Inc.

Forrester Third-Quarter Fiscal 2007 Results

Forrester Research, Inc.
Consolidated Statements of Income

(In thousands, except per share data)

		Three months Ended								Nine months Ended
		Sept 30,				Sept 30,				Sept 30,				Sept 30,
		2007				2006				2007				2006
						(as restated)								(as restated)
		(Unaudited)								(Unaudited)
Revenues
Research services		$	32,945			$	29,690			$	96,312			$	84,280
Advisory services and other			18,190				14,384				57,325				48,245
Total revenues			51,135				44,074				153,637				132,525
Operating expenses
Cost of services and fulfillment			18,648				17,070				60,106				54,301
Selling and marketing			17,913				14,228				52,813				44,031
General and administrative			7,002				5,445				22,533				16,760
Depreciation			1,026				947				2,881				2,747
Amortization of intangible assets			293				474				978				1,598
Total operating expenses			44,882				38,164				139,311				119,437
Income from continuing operations			6,253				5,910				14,326				13,088
Other income, net			2,175				1,652				6,153				3,936
Gains (impairments) from non-marketable investments, net			98				98				(1,690	)			305
Income from continuing operations before income taxes			8,526				7,660				18,789				17,329
Income tax provision			1,729				2,828				5,460				7,511
Income from continuing operations		$	6,797			$	4,832			$	13,329			$	9,818
Discontinued operations
Income from discontinued operations, net of taxes			—				51				—				300
Gain on sale of discontinued operations, net of taxes			—				1,399				—				1,399
Net Income		$	6,797			$	6,282			$	13,329			$	11,517
Diluted income per share from continuing operations		$	0.29			$	0.21			$	0.56			$	0.43
Diluted income per share from discontinued operations		$	—			$	0.06			$	—			$	0.07
Diluted income per share from net income		$	0.29			$	0.27			$	0.56			$	0.51
Diluted weighted average shares outstanding			23,667				23,428				23,749				22,693
Basic income per share from continuing operations		$	0.29			$	0.21			$	0.58			$	0.45
Basic income per share from discontinued operations		$	—			$	0.07			$	—			$	0.08
Basic income per share from net income		$	0.29			$	0.28			$	0.58			$	0.53
Basic weighted average shares outstanding			23,072				22,637				23,067				21,937
Pro forma data (1):
Income from continuing operations		$	6,253			$	5,910			$	14,326			$	13,088
Amortization of intangible assets			293				474				978				1,598
Investigation related expenses			808				—				3,635				—
Non-cash stock-based compensation included in the following expense categories:
Cost of services and fulfillment			817				696				3,119				2,254
Selling and marketing			313				443				1,524				1,393
General and administrative			295				410				1,120				1,562
Pro forma income from continuing operations			8,779				7,933				24,702				19,895
Other income, net			2,175				1,652				6,153				3,936
Pro forma income before income taxes			10,954				9,585				30,855				23,831
Pro forma income tax provision			4,272				3,546				12,033				8,817
Pro forma net income		$	6,682			$	6,039			$	18,822			$	15,014
Pro forma diluted earnings per share		$	0.28			$	0.26			$	0.79			$	0.66
Diluted weighted average shares outstanding			23,667				23,428				23,749				22,693

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Forrester Third-Quarter Fiscal 2007 Results

Forrester Research, Inc.
Consolidated Balance Sheets
(In thousands)

		Sept 30,				December 31,
		2007				2006
		(Unaudited)
Assets:
Cash and cash equivalents		$	40,820			$	39,157
Available-for-sale securities			198,562				168,676
Accounts receivable, net			35,729				59,727
Deferred commissions			7,901				10,117
Deferred income taxes			14,717				13,592
Prepaid expenses and other current assets			10,558				7,610
Total current assets			308,287				298,879
Property and equipment, net			6,641				5,611
Goodwill, net			53,527				53,171
Deferred income taxes			5,323				11,335
Intangible assets, net			539				1,517
Other Assets			855				615
Non-marketable investments			10,013				13,015
Total assets		$	385,185			$	384,143
Liabilities and stockholders’ equity:
Accounts payable		$	2,531			$	2,878
Accrued expenses			23,520				29,852
Deferred revenue			85,238				99,875
Total liabilities			111,289				132,605
Deferred income tax liability and other non-current accrued income tax liability			6,068				6,633
Preferred stock			—				—
Common stock			279				279
Additional paid-in capital			276,880				270,306
Retained earnings			75,862				62,766
Treasury stock, at cost			(85,834	)			(85,834	)
Accumulated other comprehensive loss			641				(2,612	)
Total stockholders’ equity			267,828				244,905
Total liabilities and stockholders’ equity		$	385,185			$	384,143

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Forrester Third-Quarter Fiscal 2007 Results

Forrester Research, Inc.
Consolidated Statements of Cash Flows
(In thousands)

		Nine Months ended
		Sept 30,				Sept 30,
		2007				2006
						(as restated)
		Unaudited
Cash flows from operations:
Net income		$	13,329			$	11,517
Net income and gain from sale of discontinued operations			—				(1,699	)
Income from continuing operations		$	13,329			$	9,818
Adjustments to reconcile net income to net cash provided by operating activities —
Depreciation			2,881				2,747
Amortization of intangible assets			978				1,598
Non-cash stock-based compensation			5,763				5,209
Impairments (gains) from non-marketable investments, net			1,690				(258	)
Increase in provision for doubtful accounts			380				150
Deferred income taxes			3,991				(316	)
Accretion of premiums on marketable securities			473				631
Changes in assets and liabilities -			—				—
Accounts receivable			24,147				21,816
Deferred commissions			2,216				1,725
Prepaid expenses and other current assets			(4,146	)			(1,606	)
Accounts payable			(338	)			280
Accrued expenses			(6,116	)			5,403
Deferred revenue			(16,053	)			(11,389	)
Net cash provided by operating activities			29,195				35,808
Net cash provided by discontinued operations			—				326
Net cash provided by operating activities			29,195				36,134
Cash flows from investing activities:
Purchases of property and equipment			(3,826	)			(2,348	)
Purchase of non-marketable investments			—				(300	)
Proceeds from non-marketable investments			1,058				380
Proceeds from sale of discontinued operations			250				1,642
Decrease in other assets			26				403
Purchase of marketable securities			(872,420	)			(465,362	)
Proceeds from sales and maturities of marketable securities			845,631				388,916
Net cash (used in) provided by investing activities			(29,281	)			(76,669	)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock option plans and employee stock purchase plan			811				35,216
Excess tax benefits from non-cash stock-based compensation			—				253
Acquisition of treasury shares			—				(12,307	)
Net cash provided by (used in) financing activities			811				23,162
Effect of exchange rate changes on cash and cash equivalents			938				457
Net increase in cash and cash equivalents			1,663				(16,916	)
Cash and cash equivalents, beginning of period			39,157				48,538
Cash and cash equivalents, end of period		$	40,820			$	31,622

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