Gartner, Inc. (NYSE: IT), the leading provider of research and analysis on the global information technology industry, today reported results for first quarter 2009. In addition, the Company raised the low-end of its guidance for EPS from continuing operations and Normalized EBITDA and reiterated its guidance for revenue and cash flow from operations for full year 2009.

EPS from continuing operations increased 50% to $0.21, net income decreased 7% to $20.0 million, and Normalized EBITDA increased 20% to $48.3 million. See "Non-GAAP Financial Measures" for a discussion of Normalized EBITDA. Net income for first quarter 2008 included a $7.0 million benefit related to the results and gain on sale of the Company’s former Vision Events business.

Contract value, a key leading indicator for Gartner’s Research segment, was $760.7 million at March 31, 2009. Excluding the impact of foreign exchange, contract value increased 2% year-over year.

Total revenue for first quarter 2009 was $273.5 million. Excluding the impact of foreign exchange, total revenue increased 1% year-over-year driven by growth in the Company’s Research business.

Gene Hall, Gartner's chief executive officer, commented, "During first quarter 2009, we continued to grow our Research revenue year-over-year excluding the impact of foreign exchange. This growth, coupled with tight cost controls, generated significantly increased earnings and higher cash flow despite the challenging global economic environment.”

Hall further commented, “With our vast untapped market opportunity, premier brand and services that provide great value to our clients, I remain confident in our prospects for long-term double digit revenue and earnings growth, once global economic activity returns to more normal levels.”

Business Segment Highlights

Research

Revenue for first quarter 2009 was $187.7 million, up 4% year-over-year excluding the impact of foreign exchange. Gross contribution margin improved approximately 3 percentage points year-over-year to 66%.

Contract value, a key leading indicator for Gartner’s Research segment, was $760.7 million at March 31, 2009. Excluding the impact of foreign exchange, contract value increased 2% year-over year.

Client and wallet retention rates for first quarter 2009 were 80% and 90%, respectively, versus 82% and 97%, respectively, for first quarter 2008. Wallet retention for both periods is now reported excluding the impact of foreign exchange.

In first quarter 2009, the Company eliminated the “Other” revenue line. “Other” revenue and related expenses are now included in the Research segment. In addition, certain expenses that were formerly classified as selling, general & administrative expenses are now presented in cost of services and product development and are included in the Research segment. Corresponding prior period presentations of these revenues and expenses have been reclassified for comparability purposes.

Consulting

Revenue for first quarter 2009 was $70.3 million, down 4% year-over-year excluding the impact of foreign exchange. Gross contribution margin was 38%.

First quarter 2009 utilization was 72% and billable headcount was 470, both unchanged from first quarter 2008. Backlog was $86.7 million at March 31, 2009.

Events

Revenue for first quarter 2009 was $15.5 million, down 18% year-over-year excluding the impact of foreign exchange. Gross contribution margin was 31%.

During first quarter 2009, the Company held 12 events with 2,858 attendees.

Complete financial release

Follow the link below for the complete financial results release.

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