Forrester Research (FORR) 8-K/A Forrester Research, Inc. Consolidated Statements of Income

Exhibit 99.1

Forrester Research, Inc.
Consolidated Statements of Income

(In thousands, except per share data)

	Three months ended					Year ended
	December 31,					December 31,
	2010			2009		2010			2009
Revenues:
Research services	$	45,445		$	40,758	$	168,508		$	157,726
Advisory services and other		21,671			20,728		82,218			75,626
Total revenues		67,116			61,486		250,726			233,352
Operating expenses:
Cost of services and fulfillment		25,079			22,049		94,105			87,873
Selling and marketing		23,627			18,469		84,663			72,487
General and administrative		9,547			7,993		33,960			28,461
Depreciation		888			1,069		3,628			4,380
Amortization of intangible assets		905			539		3,620			2,290
Reorganization costs		—			2,300		—			5,441
Total operating expenses		60,046			52,419		219,976			200,932
Income from operations		7,070			9,067		30,750			32,420
Other income (loss), net		(29	)		115		1,249			2,297
Gains (losses) on investments, net		472			701		2,301			(982	)
Income before income taxes		7,513			9,883		34,300			33,735
Income tax provision		3,384			4,100		13,793			14,869
Net Income	$	4,129		$	5,783	$	20,507		$	18,866
Diluted income per share	$	0.18		$	0.26	$	0.89		$	0.82
Diluted weighted average shares outstanding		23,134			22,678		23,063			22,884
Basic income per share	$	0.18		$	0.26	$	0.91		$	0.83
Basic weighted average shares outstanding		22,543			22,372		22,478			22,645
Pro forma data (1):
Income from operations	$	7,070		$	9,067	$	30,750		$	32,420
Amortization of intangible assets		905			539		3,620			2,290
Duplicate lease costs		487			—		875			—
Reorganization costs		—			2,300		—			5,441
Acquisitions costs (credits)		256			—		(70	)		—
Stock-based compensation included in the following expense categories:
Cost of services and fulfillment		507			480		2,094			2,961
Selling and marketing		234			239		943			1,123
General and administrative		447			471		1,837			2,027
Pro forma income from operations		9,906			13,096		40,049			46,262
Other income (loss), net		(29	)		115		1,249			2,297
Pro forma income before income taxes		9,877			13,211		41,298			48,559
Pro forma income tax provision		3,951			5,284		16,519			19,424
Pro forma net income	$	5,926		$	7,927	$	24,779		$	29,135
Pro forma diluted income per share	$	0.26		$	0.35	$	1.07		$	1.27
Diluted weighted average shares outstanding		23,134			22,678		23,063			22,884

(1) Forrester believes that pro forma financial results provide investors with consistent and comparable information to aid in the understanding of Forrester’s ongoing business. Our pro forma presentation excludes amortization of acquisition-related intangible assets, duplicate lease costs, reorganization costs, costs or (credits) associated with acquisition activities, stock-based compensation and net gains or losses from investments, as well as their related tax effects. The pro forma data does not purport to be prepared in accordance with Accounting Principles Generally Accepted in the United States.