Harte Hanks (1)Harte Hanks second quarter 2015 revenues were $122.3 million compared to $140.3 million during the same quarter last year.

Customer Interaction revenues were $109.2 million compared to $127.3 million in the same quarter last year. The increase in revenues during the quarter from our acquisition of 3Q Digital this March was offset by the revenue decrease resulting from the sale of our business-to-business (B2B) research businesses in early April 2015.

Our Financial and Healthcare verticals both achieved growth during the period. The Financial vertical increased from the addition of a new client announced last year using our solutions for analytics, database, creative and mail services.  Our Healthcare vertical increased principally from contact center support for a new pharmaceutic
al client. Consistent with our first quarter results, our Select Markets vertical declined primarily from a tough comparison to last year’s contact center implementation of online streaming activities for a large entertainment client. The non-recurrence of this project represents about one fourth of the Customer Interaction revenue decline. Our Retail and Auto & Consumer Brands verticals declined from clients changing their mail solicitation processes and agencies, along with their data related requirements.

Trillium Software revenues increased to $13.2 million compared to $13.0 million in the second quarter of 2014 driven by a one-time software license event. Maintenance and professional service revenues decreased compared to the second quarter last year.

Operating income for the quarter was $8.1 million compared to $11.0 million for the same quarter last year. Reductions in labor, production and selling, general and administrative costs partially offset our decline in revenues.

Commenting on performance, Chief Executive Officer Doug Shepard said, “We are disappointed in our results for the second quarter and the first half of this year. Our goal remains to deliver consistent revenue growth and we have not performed.

Management has begun to take corrective action to address the key issues contributing to our revenue performance. Our business strategy of being a trusted business partner delivering impactful customer interactions differentiated through our expertise and execution remains unchanged. During the first half of the year, we enhanced our capabilities by completing our first acquisition in five years and better focused our product offerings by selling our B2B research businesses which were no longer relevant to our strategy.  Although we have struggled to grow revenue this year, both our management and the Board of Directors believe in this strategy and remain committed to delivering results for our clients and shareholders. We have established a solid foundation to build upon and have the resources necessary to acquire talent, develop market leading products that better connect clients with their customers, and build tools to provide world class support for our clients.”

Source:  Harte Hanks Earnings Report