Gartner, Inc. (NYSE: IT) today reported results for fourth quarter and full year 2007, and provided its preliminary financial outlook for 2008. In addition, Gartner announced an increased share repurchase authorization, a change in the leadership of its Consulting business, and a non-binding letter of intent to sell its non-core Vision Events business. Financial results press release available, and replay of earnings conference call pending, as of this posting.

Gene Hall, Gartner's chief executive officer, commented, "Our 2007 results reflect the continued successful execution of our growth strategy. With our vast, untapped market opportunity and products that are crucial to the efficient operation of our clients’ IT programs, we are well positioned to continue double-digit revenue and earnings growth, even in a slower economic environment.”

Highlights of the results include:

• 2007 Revenue increased 12% to $1.189 Billion
• 2007 GAAP EPS Increased 36% to $0.68
• 2007 Operating Cash Flow Increased 40% to $148.3 Million
• Gartner Repurchased $169.1 Million of Stock During 2007

Separately, Gartner announced that Per Anders Warn has been promoted to senior vice president and will lead Gartner’s global Consulting business. Mr. Warn will replace Bob Patton, who will leave Gartner in February to return to a senior leadership position at his previous employer, Ernst & Young. Since joining Gartner Consulting in 1998, Warn has held a number of senior leadership positions in both Europe and the United States. Most recently, he has led Gartner’s global core Consulting team.

Other announcements included an Investor Day for institutional investors and sell-side analysts on Thursday, March 6, 2008 in New York City; and, the 2008 Annual Meeting of Stockholders, to be held at 10:00 a.m. ET on Thursday, June 5, 2008, at the Company’s offices in Stamford, Connecticut.

Find the complete financial results release at the Gartner website (link below). An excerpt of summary highlights includes the following:

Fourth Quarter 2007 Results

Contract value, a key leading indicator for Gartner’s Research segment, increased 18% year-over-year to a record level of $752.5 million, reflecting the successful execution of the Company’s strategy to accelerate research growth. Total revenue for fourth quarter 2007 grew 15% year-over-year to $348.4 million, driven by strong, double-digit growth in the Company’s Research and Consulting businesses and modest growth in its Events business. Excluding the impact of foreign exchange, research contract value and total revenue increased 14% and 10%, respectively.

For fourth quarter 2007, GAAP EPS increased 85% year-over-year to $0.37, net income increased 72% year-over-year to $38.8 million and Normalized EBITDA increased 53% year-over-year to $80.0 million. See "Non-GAAP Financial Measures" for a discussion of Normalized EBITDA.

Full Year 2007 Results

Total revenue for full year 2007 grew 12% to $1.189 billion, driven by growth in all three of Gartner’s business segments. Excluding the impact of foreign exchange, total revenue increased 9%.

Full year 2007 GAAP EPS increased 36% year-over-year to $0.68, net income increased 26% year-over-year to $73.6 million and Normalized EBITDA increased 25% year-over-year to $194.1 million. Net income and GAAP EPS include charges and non-operating items totaling ($7.2) million, pretax, or ($0.04) per share, net of tax, which were previously reported in the Company’s second quarter 2007 financial results.

Business Segment Highlights

Research: Revenue for the fourth quarter increased 19% year-over-year to $180.6 million and gross contribution margin improved approximately 6 percentage points to 64%. For the full year, revenue increased 18% to $673.3 million and gross contribution margin improved approximately 4 percentage points to 64%. At December 31, 2007, research contract value was a record $752.5 million, up 18% year-over-year. Client and wallet retention rates for fourth quarter 2007 increased to 82% and 101%, respectively, versus 81% and 96%, respectively, for fourth quarter 2006.

Consulting: Revenue for the fourth quarter increased 20% year-over-year to $91.4 million and gross contribution margin improved approximately 10 percentage points to 42%. For the full year, revenue increased 6% to $325.0 million and gross contribution margin was 39%. Fourth quarter utilization increased 12 percentage points year-over-year to 73% and backlog increased 11% year-over-year to $121.4 million at December 31, 2007. Billable headcount was 472 as of December 31, 2007, versus 518 last year, reflecting the exiting of consulting operations in Asia Pacific.

Events: Revenue for the fourth quarter increased 3% year-over-year to $74.1 million and gross contribution margin was 56%. During the fourth quarter, attendees grew 2% to 16,675, despite the Company holding only 17 events versus 18 events in the same period last year. For the full year, revenue increased 7% to $180.8 million and gross contribution margin was 49%. During 2007, attendees grew 8% to 44,216 and the Company held 78 events as compared to 74 events during 2006.

Complete financial results

Find the complete financial results release at the Gartner website. As of this posting, the links for the replay of the earnings conference call are not yet ready to use. The webcast replay will be available for 90 days.

» Story on Analyst Firm Website

» Comments   Digg this    del.icio.us