Forrester Research (FORR) 8-K Forrester Research Corrects Third-Quarter 2007 Financial Results Press Release

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

Forrester Research Corrects Third-Quarter 2007 Financial Results Press Release

Cambridge, Mass., November 20, 2007. . . Forrester Research, Inc. (Nasdaq: FORR) today reported a correction to the consolidated statements of cash flows included in its November 19, 2007 press release announcing financial results for the third quarter ended September 30, 2007. The consolidated statement of cash flows for the nine months ended September 30, 2006 contained a mathematical error, resulting in inaccurate net cash provided by operating activities and accordingly, in the net increase in, and end of period, cash and cash equivalents. The consolidated statements of income and balance sheets are not affected.

The consolidated statements of income, consolidated balance sheets, and corrected consolidated statements of cash flows are attached.

About Forrester Research

Forrester Research (Nasdaq: FORR) is an independent technology and market research company that provides pragmatic and forward-thinking advice about technology’s impact on business and consumers. For 24 years, Forrester has been a thought leader and trusted advisor, helping global clients lead in their markets through its research, consulting, events, and peer-to-peer executive programs. For more information, visit www.forrester.com.

Michael Doyle	Karyl Levinson
Chief Financial Officer	Vice President, Corporate
	Communications
Forrester Research, Inc.	Forrester Research, Inc.
+1 617/613-6000	+1 617/613-6262
mdoyle@forrester.com	press@forrester.com

^© 2007, Forrester Research, Inc. All rights reserved. Forrester is a trademark of Forrester Research, Inc.

Forrester Third-Quarter Fiscal 2007 Results

Forrester Research, Inc.
Consolidated Statements of Income

(In thousands, except per share data)

	Three months Ended				Nine months Ended
	Sept 30,		Sept 30,		Sept 30,			Sept 30,
	2007		2006		2007			2006
			(as restated)					(as restated)
	(Unaudited)				(Unaudited)
Revenues
Research services	$	32,945	$	29,690	$	96,312		$	84,280
Advisory services and other		18,190		14,384		57,325			48,245
Total revenues		51,135		44,074		153,637			132,525
Operating expenses
Cost of services and fulfillment		18,648		17,070		60,106			54,301
Selling and marketing		17,913		14,228		52,813			44,031
General and administrative		7,002		5,445		22,533			16,760
Depreciation		1,026		947		2,881			2,747
Amortization of intangible assets		293		474		978			1,598
Total operating expenses		44,882		38,164		139,311			119,437
Income from continuing operations		6,253		5,910		14,326			13,088
Other income, net		2,175		1,652		6,153			3,936
Gains (impairments) from non-marketable investments, net		98		98		(1,690	)		305
Income from continuing operations before income taxes		8,526		7,660		18,789			17,329
Income tax provision		1,729		2,828		5,460			7,511
Income from continuing operations	$	6,797	$	4,832	$	13,329		$	9,818
Discontinued operations
Income from discontinued operations, net of taxes		—		51		—			300
Gain on sale of discontinued operations, net of taxes		—		1,399		—			1,399
			��
Net Income	$	6,797	$	6,282	$	13,329		$	11,517
Diluted income per share from continuing operations	$	0.29	$	0.21	$	0.56		$	0.43
Diluted income per share from discontinued operations	$	—	$	0.06	$	—		$	0.07
Diluted income per share from net income	$	0.29	$	0.27	$	0.56		$	0.51
Diluted weighted average shares outstanding		23,667		23,428		23,749			22,693
Basic income per share from continuing operations	$	0.29	$	0.21	$	0.58		$	0.45
Basic income per share from discontinued operations	$	—	$	0.07	$	—		$	0.08
Basic income per share from net income	$	0.29	$	0.28	$	0.58		$	0.53
Basic weighted average shares outstanding		23,072		22,637		23,067			21,937
Pro forma data (1):
Income from continuing operations	$	6,253	$	5,910	$	14,326		$	13,088
Amortization of intangible assets		293		474		978			1,598
Investigation related expenses		808		—		3,635			—
Non-cash stock-based compensation included in the following expense categories:
Cost of services and fulfillment		817		696		3,119			2,254
Selling and marketing		313		443		1,524			1,393
General and administrative		295		410		1,120			1,562
Pro forma income from continuing operations		8,779		7,933		24,702			19,895
Other income, net		2,175		1,652		6,153			3,936
Pro forma income before income taxes		10,954		9,585		30,855			23,831
Pro forma income tax provision		4,272		3,546		12,033			8,817
Pro forma net income	$	6,682	$	6,039	$	18,822		$	15,014
Pro forma diluted earnings per share	$	0.28	$	0.26	$	0.79		$	0.66
Diluted weighted average shares outstanding		23,667		23,428		23,749			22,693

(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 intangibles, non-cash stock-based compensation expense gains or impairments of non-marketable investments, and costs associated with the stock option investigation and restatement of our historical financial statements, as well as their related tax effects. This does not purport to be prepared in accordance with Accounting Principles Generally Accepted in the United States.

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Forrester Third-Quarter Fiscal 2007 Results

Forrester Research, Inc.
Consolidated Balance Sheets
(In thousands)

	Sept 30,			December 31,
	2007			2006
	(Unaudited)
Assets:
Cash and cash equivalents	$	40,820		$	39,157
Available-for-sale securities		198,562			168,676
Accounts receivable, net		35,729			59,727
Deferred commissions		7,901			10,117
Deferred income taxes		14,717			13,592
Prepaid expenses and other current assets		10,558			7,610
Total current assets		308,287			298,879
Property and equipment, net		6,641			5,611
Goodwill, net		53,527			53,171
Deferred income taxes		5,323			11,335
Intangible assets, net		539			1,517
Other Assets		855			615
Non-marketable investments		10,013			13,015
Total assets	$	385,185		$	384,143
Liabilities and stockholders’ equity:
Accounts payable	$	2,531		$	2,878
Accrued expenses		23,520			29,852
Deferred revenue		85,238			99,875
Total liabilities		111,289			132,605
Deferred income tax liability and other non-current accrued income tax liability		6,068			6,633
Preferred stock		—			—
Common stock		279			279
Additional paid-in capital		276,880			270,306
Retained earnings		75,862			62,766
Treasury stock, at cost		(85,834	)		(85,834	)
Accumulated other comprehensive loss		641			(2,612	)
Total stockholders’ equity		267,828			244,905
Total liabilities and stockholders’ equity	$	385,185		$	384,143

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Forrester Third-Quarter Fiscal 2007 Results

Forrester Research, Inc.
Consolidated Statements of Cash Flows
(In thousands)

	Nine Months ended
	Sept 30,			Sept 30,
	2007			2006
				(as restated)
	Unaudited
Cash flows from operations:
Net income	$	13,329		$	11,517
Net income and gain from sale of discontinued operations		—			(1,699	)
Income from continuing operations	$	13,329		$	9,818
Adjustments to reconcile net income to net cash provided by operating activities —
Depreciation		2,881			2,747
Amortization of intangible assets		978			1,598
Non-cash stock-based compensation		5,763			5,209
Impairments (gains) from non-marketable investments, net		1,690			(258	)
Increase in provision for doubtful accounts		380			150
Deferred income taxes		3,991			(316	)
Accretion of premiums on marketable securities		473			631
Changes in assets and liabilities -		—			—
Accounts receivable		24,147			21,816
Deferred commissions		2,216			1,725
Prepaid expenses and other current assets		(4,146	)		(1,606	)
Accounts payable		(338	)		280
Accrued expenses		(6,116	)		5,403
Deferred revenue		(16,053	)		(11,389	)
Net cash provided by operating activities		29,195			35,808
Net cash provided by discontinued operations		—			326
Net cash provided by operating activities		29,195			36,134
Cash flows from investing activities:
Purchases of property and equipment		(3,826	)		(2,348	)
Purchase of non-marketable investments		—			(300	)
Proceeds from non-marketable investments		1,058			380
Proceeds from sale of discontinued operations		250			1,642
Decrease in other assets		26			403
Purchase of marketable securities		(872,420	)		(465,362	)
Proceeds from sales and maturities of marketable securities		845,631			388,916
Net cash (used in) provided by investing activities		(29,281	)		(76,669	)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock option plans and employee stock purchase plan		811			35,216
Excess tax benefits from non-cash stock-based compensation		—			253
Acquisition of treasury shares		—			(12,307	)
Net cash provided by (used in) financing activities		811			23,162
Effect of exchange rate changes on cash and cash equivalents		938			457
Net increase in cash and cash equivalents		1,663			(16,916	)
Cash and cash equivalents, beginning of period		39,157			48,538
Cash and cash equivalents, end of period	$	40,820		$	31,622

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