Gartner, Inc. (NYSE: IT), the leading provider of research and analysis on the global information technology industry, today reported results for third quarter 2009.

In addition, the Company increased its outlook for cash from operations and reiterated its outlook for revenue, Normalized EBITDA and EPS from continuing operations for full year 2009.

For third quarter 2009, EPS from continuing operations were $0.21, net income was $20.1 million, Normalized EBITDA was $40.8 million, and cash from operations was $55.1 million. EPS from continuing operations and net income were positively impacted by the timing of certain non-cash tax benefits totaling $4.7 million, or $0.05 per share, which are not expected to recur. See "Non-GAAP Financial Measures" for a discussion of Normalized EBITDA.

Total revenue for third quarter 2009 was $267.5 million. Excluding the impact of foreign exchange, total revenue decreased 7% year-over-year.

Gene Hall, Gartner's chief executive officer, commented, "During the third quarter, our key business metrics continued to improve sequentially. We increased salesforce productivity, grew new business in Research and improved retention on Research subscriptions that came up for renewal during the quarter. As a result, our Research Contract Value grew sequentially by almost $7 million. These improvements were driven both by the success of our efforts to improve sales effectiveness and a more favorable economic environment. Looking ahead, we expect our business trends to continue to improve in the fourth quarter and we expect to generate revenue, earnings and cash flow growth in 2010.”

Business Segment Highlights

Research Revenue for third quarter 2009 was $185.7 million, down 4% year-over-year excluding the impact of foreign exchange. Gross contribution margin improved approximately 1 percentage point year-over-year to 66%. Contract value was $742.9 million at September 30, 2009, up 1% versus June 30, 2009. Year-over-year, contract value decreased 4% excluding the impact of foreign exchange. Client and wallet retention rates for third quarter 2009 were 77% and 85%. Wallet retention excludes the impact of foreign exchange.

Consulting Revenue for third quarter 2009 was $65.7 million, down 16% year-over-year excluding the impact of foreign exchange. Gross contribution margin was 36%. Third quarter 2009 utilization was 64% and billable headcount was 449. Backlog was $84.7 million at September 30, 2009, up 4% versus June 30, 2009.

Events Revenue for the third quarter was $16.0 million, down 6% year-over-year excluding the impact of foreign exchange. Gross contribution margin improved approximately 6 percentage points to 37%. The Company held 15 events with 5,413 attendees during the quarter.

Follow the link below for the complete financial release at Gartner's investor relations web site.

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