Information Services Group booked relatively slow growth last year, in part due to softness in the UK market as well as acquisitions and severance costs. Revenue on a constant-currency basis was up 4% on the year previous to $216.5 million, while operating income stood at a loss of $2.6 million loss. For 2017, the firm is betting on improved organic growth and a considerable boost from the acquisition of Alsbridge.
Technology research and consulting firm Information Services Group (ISG) is active in 20 countries across the globe, and employs more than 1,300 people across its operation. Late last year ISG acquired Alsbridge, adding more than 300 consultants to the firm and boosting its presence in the transformation, business processes and robotics advisory space.
The latest financial results for ISG show a revenue increase of 4% on a on a constant-currency basis to $216.5 million, from $209.2 million in 2015. The Asia-Pacific regions saw the most robust growth, up 9% to $24.8 million, the Americas region followed, up 7% to $116.6 million, while the firm’s European operations saw revenue fall by 2% to $75.1 million.
The company recorded an operating loss of $2.6 million last year, a $12.2 million drop on the previous year in which the firm posted operating income of $9.6 million. The operating loss includes severance and acquisition costs, amounting to $6.4 million, borne in the fourth quarter. The firm notes a net loss of $6.4 million for the whole of 2016, compared to the previous year in which the firm posted net income of $5.0 million.
While the results for 2016 were negatively affected by severance and acquisition costs, including the purchase and integration process of Alsbridge, the firm is expecting to hit the ground running going into 2017, on the back of groundwork completed in the final quarter of 2016 as well as synergies generated from the acquisition, which are projected to be at least $7 million over the coming 18 months.
Remarking on the coming year, Michael P. Connors, Chairman and Chief Executive Officer, says, "We are confident about our growth prospects for the full year, including the first quarter, as our pipeline continues to build, cost synergies are being achieved, cross-selling opportunities are beginning to emerge over our expanded client base, and demand for our digital and automation services continues to grow."
Connors adds, "For 2017, ISG is targeting revenue growth of approximately 25% - 34% ($270 - $290 million) and adjusted EBITDA growth of approximately 68% - 83% ($33.5 - $36.5 million) over the prior year."