Harris Interactive® Reports Second Quarter Fiscal 2013 Results and Provides Full Fiscal Year Guidance

 Harris Interactive® Reports Second Quarter Fiscal 2013 Results and Provides
                          Full Fiscal Year Guidance

PR Newswire

ROCHESTER, N.Y., Feb. 6, 2013

ROCHESTER, N.Y., Feb. 6, 2013 /PRNewswire/ --Harris Interactive Inc. (NASDAQ:
HPOL), a leading global market research firm, today announced its second
quarter fiscal 2013 financial results.

(Logo: http://photos.prnewswire.com/prnh/20100518/NY06801LOGO )

Al Angrisani, President and Chief Executive Officer of Harris Interactive,
commented, "Today's announcement of improved earnings guidance over last
year's earnings is a strong indication that the turnaround is progressing on
schedule. Our improved profitability has allowed us to continue to de-leverage
our balance sheet and position ourselves to pay off all remaining bank debt by
fiscal year end. As our turnaround continues, the major task that remains is
to continue to strengthen the sales engine of the Company by focusing our
sales efforts on our core product strengths as well as some of our new product
offerings."

Key Financial Statistics (1)


                                                         

                                 For the Three Months     For the Six Months
                                Ended December 31,       Ended December 31,

USD in millions – unaudited
                                 2012         2011        2012      2011
Revenue (2)                      $   37.1   $   39.1  $  70.1  $  76.9
Operating income (loss) (3)      $    3.0  $    2.3 $   4.8 $  (2.0)
Net income (loss)                $    2.9  $    1.6 $   4.6 $  (4.3)
Fully diluted net income (loss)  $   0.05   $   0.03  $  0.08  $ (0.08)
per share
Adjusted EBITDA (4)              $    4.8  $   4.0  $   8.3 $   1.6
Adjusted EBITDA with add-back of
restructuring and other charges  $    4.8  $   4.0  $   8.3 $   6.9
(4)
Cash provided by operations      $    1.6  $   3.3  $   1.9 $   3.5
Bookings (5)                     $   47.8   $  45.2   $  81.7  $  77.3
At December 31:                  2012         2011
Cash and cash equivalents        $   11.1  $  14.1
Outstanding debt                 $    3.6 $   8.4
Secured revenue (6)              $   54.1  $  45.1

________

(1) All amounts shown reflect our Asian operations as discontinued operations.
    Amounts include the impact of foreign currency exchange rate differences.
(2) Excluding the impact of foreign currency exchange rate differences,
    revenue for the three and six months ended December 31, 2012 decreased by
    5% and 8%, respectively, over the same prior year periods.
    Operating income for the three and six months ended December 31, 2012 did
(3) not include any restructuring or other charges, compared with $(0.1)
    million and $5.4 million, respectively, for the same prior year periods.
(4) EBITDA is a non-GAAP measure. Adjusted EBITDA, also a non-GAAP measure, is
    EBITDA with stock-based compensation added back.
    Amounts include the impact of foreign currency exchange rate differences.
(5) Excluding the impact of foreign currency exchange rate differences,
    bookings for the three and six months ended December 31, 2012 increased by
    5% for both current periods, over the same prior year periods.
    Amounts include the impact of foreign currency exchange rate differences.
(6) Excluding the impact of foreign currency exchange rate differences,
    secured revenue at December 31, 2012 increased by 19% over the same prior
    year period.

Full Year Fiscal 2013 Guidance

Eric Narowski, Chief Financial Officer of Harris Interactive, commented,
"Based on current market conditions and forecasts, the Company projects
Adjusted EBITDA to be between $13.5 and $14.5 million for the fiscal year
ending June 30, 2013."

Second Quarter Fiscal 2013 Results Conference Call and Webcast Access

Al Angrisani, President and Chief Executive Officer, will host a conference
call to discuss these results on Wednesday, February 6, 2013, at 5:00 p.m. ET.
Formal remarks will be followed by a question and answer session.

To access the conference call, please dial toll-free  877.303.9858 in the
United States and Canada, or  408.337.0139 internationally.

A live webcast of the conference call also will be accessible via the Investor
Relations section of our website at http://ir.harrisinteractive.com/, where an
archived replay of the webcast will be available for 30days following the
call. No telephone replay of the conference call will be provided. This media
release will be available under the Investor Relations section of our website
at http://ir.harrisinteractive.com/ prior to the call.

Cautionary Note Regarding Forward Looking Statements

Certain statements in this press release and oral statements made by the
Company on its conference call constitute forward-looking statements for
purposes of the safe harbor provisions under The Private Securities Litigation
Reform Act of 1995. These statements include, among others, statements as to
future economic performance, projections as to financial items, estimates, and
plans and objectives for future operations, products and services. In some
cases, you can identify forward-looking statements by terminology such as,
"may", "should", "expects", "plans", "anticipates", "feel", "believes",
"estimates", "predicts", "potential", "continue", "consider", "possibility",
or the negative of these terms or other comparable terminology. These
forward-looking statements involve a number of risks and uncertainties that
could cause actual results to differ materially from those in the forward
looking statements. Such risks and uncertainties include, without limitation,
risks detailed in the "Risk Factors" section of the Company's most recent
Annual Report on Form 10-K, as updated quarterly in our Quarterly Reports on
Form 10-Q to reflect additional material risks. The Company has filed its
reports on Forms 10-K and 10-Q with the Securities and Exchange Commission,
and they are available under the Investor Relations section of our website at
http://ir.harrisinteractive.com/. Risks and uncertainties also include the
continued volatility of the global macroeconomic environment and its impact on
the Company and its clients, the Company's ability to sustain and grow its
revenue base, the Company's ability to maintain and improve cost efficient
operations, the impact of reorganization, restructuring and related charges,
quarterly variations in financial results, the Company's ability to maintain
compliance with certain NASDAQ listing requirements, actions of competitors,
the Company's ability to develop and maintain products and services attractive
to the market, and the Company's ability to remain in compliance with the
financial covenants in its credit agreement.

You are urged to consider these factors carefully in evaluating such
forward-looking statements and are cautioned not to place undue reliance on
them. The forward-looking statements are qualified in their entirety by this
cautionary statement.

About Harris Interactive

Harris Interactive is one of the world's leading market research firms,
leveraging research, technology, and business acumen to transform relevant
insight into actionable foresight. Known widely forthe Harris Poll®and for
pioneering innovative research methodologies, Harris offers proprietary
solutions in the areas of market and customer insight, corporate brand and
reputation strategy, and marketing, advertising, public relations and
communications research. Harris possesses expertise in a wide range of
industries including health care, technology, public affairs, energy,
telecommunications, financial services, insurance, media, retail, restaurant,
and consumer package goods. Additionally, Harris has a portfolio of
multi-client offerings that complement our custom solutions while maximizing
our client's research investment. Serving clients in more than 196 countries
and territories through our North American and European offices, Harris
specializes in delivering research solutions that help us - and our
clients-stay ahead of what's next. For more information, please
visitwww.harrisinteractive.com.

HPOL – E





HARRIS INTERACTIVE INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
                                                December 31,     June 30,
                                                2012             2012
Assets
 Cash and cash equivalents                    $     11,085 $  11,456
 Accounts receivable, net                     27,234           19,940
 Unbilled receivables                         6,512            7,513
 Prepaids and other current assets            3,663            3,859
 Deferred tax assets                          156              243
           Total current assets                 48,650           43,011
 Property, plant and equipment, net           2,335            2,500
 Other intangibles, net                       9,551            10,795
 Other assets                                 1,131            1,080
           Total assets                         $     61,667 $  57,386
Liabilities and Stockholders' Equity
 Accounts payable                             $     9,122 $   7,628
 Accrued expenses                             17,343           21,643
 Current portion of long-term debt            3,596            4,794
 Deferred revenue                             14,264           10,088
 Liabilities from discontinued operations     -                181
           Total current liabilities            44,325           44,334
 Long-term debt                               -                1,199
 Deferred tax liabilities                     1,497            1,696
 Other long-term liabilities                  3,165            4,072
           Total stockholders' equity           12,680           6,085
           Total liabilities and stockholders'  $     61,667 $  57,386
           equity





HARRIS INTERACTIVE INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
                               Three Months Ended       Six Months Ended
                               December 31,             December 31,
                               2012        2011         2012        2011
Revenue from services          $        $         $        $   
                               37,087      39,115       70,097      76,884
Operating expenses:
 Cost of services            21,898      24,380       41,353      48,010
Selling, general and           11,207      11,308       21,985      22,973
administrative
Depreciation and               963         1,197        1,911       2,490
amortization
Restructuring and other        -           (72)         -           5,368
charges
Total operating expenses       34,068      36,813       65,249      78,841
Operating income (loss)        3,019       2,302        4,848       (1,957)
Operating margin               8.1%        5.9%         6.9%        -2.5%
Interest expense, net          69          204          170         361
 Income (loss) from
continuing operations before   2,950       2,098        4,678       (2,318)
income taxes
Provision for income taxes     58          283          43          3
 Income (loss) from          2,892       1,815        4,635       (2,321)
continuing operations
 Loss from discontinued      -           (190)        -           (2,011)
operations
 Net income (loss)           $       $        $       $   
                               2,892       1,625        4,635       (4,332)
Basic net income (loss) per
share:
 Continuing operations       $      $       $      $    
                               0.05        0.03         0.08        (0.04)
 Discontinued operations     -           (0.00)       -           (0.04)
Basic net income (loss) per    $      $       $      $    
share                          0.05        0.03         0.08        (0.08)
Diluted net income (loss)
per share:
 Continuing operations       $      $       $      $    
                               0.05        0.03         0.08        (0.04)
 Discontinued operations     -           (0.00)       -           (0.04)
Diluted net income (loss)      $      $       $      $    
per share                      0.05        0.03         0.08        (0.08)
Weighted average shares
outstanding:
 Basic                     56,152,326  55,272,335   56,171,401  55,149,610
 Diluted                   57,412,623  55,294,426   57,395,320  55,149,610





Harris Interactive Inc.
Three and Six Months Ended
December 31, 2012
Reconciliation of GAAP Net Income (Loss) to EBITDA and
Adjusted EBITDA
Amounts in thousands of USD
                                Three Months Ended        Six Months Ended
                                December 31,              December 31,
                                2012         2011         2012      2011
GAAP net income (loss)          $   2,892 $   1,625  $  4,635 $ (4,332)
Loss from discontinued         -            190          -         2,011
operations
Interest expense, net           69           204          170       361
Provision for income taxes      58           283          43        3
Depreciation and amortization   1,127        1,462        2,243     2,980
EBITDA                          $   4,146 $   3,764  $  7,091 $  1,023
Stock-based compensation (7)    679          271          1,248     550
Adjusted EBITDA                 $   4,825 $   4,035  $  8,339 $  1,573
Adjusted EBITDA                 $   4,825 $   4,035  $  8,339 $  1,573
Add-back of restructuring and   -            (72)         -         5,368
other charges
Adjusted EBITDA with add-back
of restructuring and other      $   4,825 $   3,963  $  8,339 $  6,941
charges
(7) Stock-based compensation expense represents the cost of stock-based
compensation
accounted for under the FASB guidance for stock-based compensation.





Full Year Fiscal 2013 Guidance
Reconciliation of GAAP Net Income (Loss) to EBITDA and
Adjusted EBITDA
Amounts in millions of USD
                                    For the Fiscal Year  For the Fiscal Year
                                    Ending June 30, 2013 Ended June 30, 2012
                                    (1)(2)
GAAP net income (loss)              $           $       (5.6)
                                    7.0
Loss from discontinued operations,  -                    1.9
net of tax
Interest expense, net               0.2                  0.7
Provision for income taxes          0.1                  0.2
Depreciation and amortization       4.4                  5.6
EBITDA                              $            $        2.8
                                    11.7
Stock-based compensation (3)        2.3                  1.8
Adjusted EBITDA                     $            $        4.6
                                    14.0
Adjusted EBITDA                     $            $        4.6
                                    14.0
Add-back of restructuring and other -                    7.5
charges
Adjusted EBITDA with add-back of    $            $       12.1
restructuring and other charges     14.0
(1) This reconciliation is based on the midpoint of the Adjusted EBITDA
guidance range provided in this press release.
(2) The amounts expressed in this column are based on current estimates as of
the date of this press release.
(3) Stock-based compensation expense represents the cost of stock-based
compensation accounted for under the
FASB guidance for stock-based compensation.



Press Contact:
Michael T. Burns
Investor Relations
Harris Interactive Inc.
800-866-7655 x7328
mburns@harrisinteractive.com 

SOURCE Harris Interactive

Website: http://www.harrisinteractive.com
 
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