Even top companies look outside their walls for advice. One firm that has long served in this advisory and research role is Forrester Research (NASDAQ:FORR).
And it's been a good business lately. In the company's latest quarterly report, revenues increased from $33.8 million to $41.2 million. Although during this time, net income was down from $2.7 million, or $0.13 per share, to $1.5 million, or $0.07 per share. The decline was the result of a variety of accounting charges, such as acquisitions, stock compensation, and realized gains on non-marketable securities. Excluding such things, the company would have earned $3.3 million, or $0.15 per share.
Forrester develops detailed research reports, primarily on technology categories, although there are also consulting services. Nearly 260 of its employees are research professionals, and the company has over 2,000 clients. The company has more generic reports -- but also offers research tailored to the client.
A very popular Forrester product is WholeView 2 Research. Basically, this provides a comprehensive view of how technology affects a company. In this era of dynamic change and global competition, such information can be crucial.
What's more, Corporate America is starting to loosen its budgets and do things like pay for outside research. And, with the surge in venture capital investing, such companies will also need in-depth industry research.
In addition, Forrester possesses the distinct advantage of having focused its domain for over 20 years. Which is to say that the company has a strong reputation in the industry -- a valuable asset in the research biz. In fact, some of its researchers are well-known leaders in the field, such as Charlene Li, who has a widely read blog.
So it should be no surprise that Forrester sees a "solid 2006" and has raised guidance. For 2006, the company expects revenues to hit $177 million to $183 million, with earnings per share of $0.45 to $0.56. But, as seen with the particularly strong first quarter, it would not be surprising to see Forrester continue to beat its numbers. After all, this is a company that helps other companies do just that.
Fool contributor Tom Taulli does not own shares mentioned in this article.
