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): April 29, 2010

FORRESTER RESEARCH, INC.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation)		000-21433 (Commission File Number)		04-2797789 (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))

 

 

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 April 29, 2010, Forrester Research, Inc. issued a press release announcing its financial results for the quarter ended March 31, 2010.

     Forrester believes that pro forma financial results provide investors with consistent and comparable information to aid in the understanding of Forrester’s ongoing business. Forrester uses pro forma financial information to manage its business, including use of pro forma financial results as the basis for setting targets for various compensation programs. Our pro forma presentation excludes the following, as well as their related tax effects:

     Amortization of intangibles—we exclude the effect of the amortization of intangibles from our pro forma results in order to more consistently present our ongoing results of operations.

     Gains and losses from investments—we have consistently excluded both gains and losses related to our investments in non-marketable securities and sales of marketable securities from our pro forma results in order to keep quarter-over-quarter and year-over-year comparisons consistent.

     Stock-based compensation expense—we exclude stock-based compensation from our pro forma results in order to keep quarter-over-quarter and year-over-year comparisons consistent.

     Reorganizations costs associated with the Company’s reduction in force announced in February 2009 are not included in our pro forma results in order to keep quarter-over-quarter and year-over-year comparisons consistent.

     Acquisition related costs and credits are not included in our pro forma results in order to more consistently present our ongoing results of operations.

     However, these measures should be considered in addition to, not as a substitute for, or superior to, operating income or other measures of financial performance prepared in accordance with generally accepted accounting principles as more fully discussed in our financial statements and filings with the Securities and Exchange Commission.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

     (d) Exhibits

99.1 Press Release dated April 29, 2010 with respect to financial results for the quarter ended March 31, 2010.

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: April 29, 2010

Exhibit Index

Exhibit				Description		Page
	99.1			Press Release dated April 29, 2010			5

Exhibit 99.1

		FOR IMMEDIATE RELEASE

Forrester Research Reports First-Quarter Financial Results

Cambridge, Mass., April 29, 2010 . . . Forrester Research, Inc. (Nasdaq: FORR) today announced its first-quarter ended March 31, 2010 financial results.

First-Quarter Financial Performance

•		Total revenues were $59.2 million, compared with $56.4 million for the first quarter of last year.
•		On a GAAP-reported basis, Forrester reported net income of $5.8 million, or $0.25 per diluted share, compared with net income of $2.6 million, or $0.11 per diluted share, for the same period last year.
•		On a pro forma basis, net income was $6.3 million, or $0.28 per diluted share, for the first quarter of 2010, which reflects a pro forma effective tax rate of 40 percent. Pro forma net income excludes stock-based compensation of $1.1 million, amortization of $0.9 million of acquisition-related intangible assets, $0.3 million of acquisition-related credits and net investment gains of $0.4 million. This compares with pro forma net income of $6.3 million, or $0.27 per diluted share, for the same period in 2009, which reflects a pro forma effective tax rate of 40 percent. Pro forma net income for the first quarter of 2009 excludes stock-based compensation of $2.2 million, amortization of $0.7 million of acquisition-related intangible assets and $3.1 million of reorganization costs.

A reconciliation of GAAP results to pro forma results may be found in the attached financial tables.

“On the heels of a good fourth quarter last year, we have followed with a strong first quarter this year,” said George F. Colony, Forrester’s chairman of the board and chief executive officer. “We finished in the upper end of our revenue guidance and surpassed our expectations for earnings and operating margin in the first quarter. Renewal rates have returned to pre-recession levels, deferred revenue is 8.5 percent higher than the same period one year ago, and we continue to expand our sales force to increase market penetration of our role-based products and services. We are off to a very good start in a year of economic recovery.”

Forrester is providing second-quarter 2010 financial guidance as follows:

Second-Quarter 2010 (GAAP):

•		Total revenues of approximately $63.5 million to $66.5 million.
•		Operating margin of approximately 15.5% to 17.5%.
•		Other income of approximately $250,000.
•		An effective tax rate of 40%.

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•

Diluted earnings per share of approximately $0.26 to $0.31.

Second-Quarter 2010 (Pro Forma):

Pro forma financial guidance for the second quarter of 2010 excludes estimated stock-based compensation of $1.0 million to $1.2 million, estimated amortization of acquisition-related intangible assets of approximately $0.9 million, and any gains or losses related to marketable and non-marketable investments.

•		Pro forma operating margin of approximately 18.5% to 20.5%.
•		Pro forma effective tax rate of 40%.
•		Pro forma diluted earnings per share of approximately $0.32 to $0.36.

Forrester is reiterating full-year 2010 guidance as follows:

Full-Year 2010 (GAAP):

•		Total revenues of approximately $240 million to $248 million.
•		Operating margin of approximately 11% to 12%.
•		Other income of approximately $1.0 million.
•		An effective tax rate of 40%.
•		Diluted earnings per share of approximately $0.72 to $0.78.

Full-Year 2010 (Pro Forma):

Pro forma financial guidance for full-year 2010 excludes estimated stock-based compensation expense of $5.0 million to $6.0 million, estimated amortization of acquisition-related intangible assets of approximately $3.6 million, and any gains or losses related to marketable and non-marketable investments.

•		Pro forma operating margin of approximately 14.5% to 15.5%.
•		Pro forma effective tax rate of 40%.
•		Pro forma diluted earnings per share of approximately $0.97 to $1.03.

About Forrester Research

Forrester Research (Nasdaq: FORR) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester works with professionals in 19 key roles at major companies providing proprietary research, customer insight, consulting, events, and peer-to-peer executive programs. For more than 26 years, Forrester has been making IT, marketing, and technology industry leaders successful every day. For more information, visit www.forrester.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, Forrester’s financial guidance for the second quarter of and full-year 2010. These statements are

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based on Forrester’s current plans and expectations and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual future activities and results to differ include, among others, Forrester’s ability to respond to business and economic conditions, technology spending, market trends, competition, industry consolidation, the ability to attract and retain professional staff, possible variations in Forrester’s quarterly operating results, any cost savings related to reductions in force and associated actions, risks associated with Forrester’s ability to offer new products and services, and Forrester’s dependence on renewals of its membership-based research services and on key personnel. Forrester undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information, please refer to Forrester’s reports and filings with the Securities and Exchange Commission.

The consolidated statements of income and the table of selected balance sheet and cash flow data are attached.

Contact:

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
© 2010, Forrester Research, Inc. All rights reserved. Forrester is a trademark of Forrester Research, Inc.

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Forrester Research, Inc.
Consolidated Statements of Income
(Unaudited, In thousands, except per share data)

		Three months ended
		March 31,
		2010				2009
Revenues:
Research services		$	39,416			$	39,050
Advisory services and other			19,764				17,357
Total revenues			59,180				56,407
Operating expenses:
Cost of services and fulfillment			21,127				22,212
Selling and marketing			20,405				19,149
General and administrative			8,087				6,972
Depreciation			918				1,092
Amortization of intangible assets			905				656
Reorganization costs			—				3,141
Total operating expenses			51,442				53,222
Income from operations			7,738				3,185
Other income, net			1,075				1,269
Gains from investments, net			425				—
Income before income taxes			9,238				4,454
Income tax provision			3,466				1,823
Net Income		$	5,772			$	2,631
Diluted income per share		$	0.25			$	0.11
Diluted weighted average shares outstanding			22,877				23,106
Basic income per share		$	0.26			$	0.11
Basic weighted average shares outstanding			22,389				22,946
Pro forma data (1):
Income from operations		$	7,738			$	3,185
Amortization of intangible assets			905				656
Reorganization costs			—				3,141
Acquisition costs (credits)			(326	)			—
Stock-based compensation included in the following expense categories:
Cost of services and fulfillment			449				1,149
Selling and marketing			244				365
General and administrative			413				678
Pro forma income from operations			9,423				9,174
Other income, net			1,075				1,269
Pro forma income before income taxes			10,498				10,443
Pro forma income tax provision			4,199				4,177
Pro forma net income		$	6,299			$	6,266
Pro forma diluted income per share		$	0.28			$	0.27
Diluted weighted average shares outstanding			22,877				23,106

Forrester Research, Inc.
Consolidated Balance Sheet and Cash Flow Data
(Unaudited, In thousands)

		March 31,				December 31,
		2010				2009
Balance sheet data:
Cash, cash equivalents and marketable investments		$	283,118			$	259,792
Accounts receivable, net		$	46,878			$	67,436
Deferred revenue		$	117,580			$	117,888

		Three months ended
		March 31,
		2010				2009
Cash flow data:
Net cash provided by operating activities		$	23,128			$	20,677
Cash used for acquisitions		$	(1,660	)		$	(561	)
Purchases of property and equipment		$	(1,402	)		$	(2,602	)
Repurchases of common stock		$	—			$	(4,899	)