Information Services Group Announces Third Quarter EPS of $(1.61)

Information Services Group, Inc. III today announced financial results for the third quarter of 2010. ISG reported total revenues of $32.2 million, a decrease of $0.3 million, or 1%, from $32.5 million in the third quarter of 2009. Revenues before client reimbursable expenses (fee revenue) totaled $29.9 million, the same as prior year levels (+2% in constant currency terms). Adjusted earnings before interest, taxes, depreciation, amortization and non-cash stock compensation and impairment charges (adjusted EBITDA, a non-GAAP measure) totaled $3.5 million, or 11.7% of fee revenue, compared with $5.4 million, or 18.1% of fee revenue, in the third quarter 2009. Excluding the impact of currency translation, adjusted EBITDA declined $1.6 million or 29% from third quarter 2009 levels. The decline in adjusted EBITDA was driven primarily by a higher level of restructuring costs, which totaled $0.7 million in the third quarter versus a reversal of restructuring accruals of $0.6 million in third quarter 2009. Adjusted net income was $152,000, or $0.00 per share, compared with $2.2 million, or $0.07 in the prior year's third quarter. Reported fully diluted earnings per share (EPS) of ($1.61) compared with ($0.11) for the third quarter of 2009; fully diluted adjusted EPS of $0.00 was down from $0.07 in the prior year.