Today’s announcement is a two-pronged response to both the conditions and demands of the market, said George F. Colony, Forrester’s chairman of the board and chief executive officer. First, we’re reorganizing our sales team around a new vertical focus that addresses the need for increased specialization in a more complex market. Second, the workforce reduction is a move driven by a slower economy. Reducing our staff for the first time in Forrester’s 18-year history was a very difficult decision, and we deeply appreciate all that our employees, both past and present, have done in contributing to the company’s success.
We believe that our long-term market position and business model remain strong, Colony continued. Technology change will continue to present significant business challenges for Global 3,500 companies. Forrester’s charter of helping companies thrive on technology change represents a powerful and sustainable value proposition.
Anticipated Second-Quarter Results
For the second quarter ended June 30, 2001, Forrester anticipates revenues of approximately $46.0 million and diluted EPS of approximately $0.24 per share. These expected results are consistent with the company’s previous guidance. For the current third quarter of 2001, the company expects to record a one-time charge in the range of $3.0 million to $4.0 million related to the reorganization and workforce reduction. On an annualized basis, associated savings are estimated to be approximately $15.0 million to $17.0 million.
The company expects to report its second-quarter results and plans to provide guidance for the second half of the year on July 18, 2001.
