Information Services Group, Inc. (Nasdaq: III) reported a decline in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Revenues for the third quarter were $61.3 million, down from $71.8 million, marking a decrease of approximately 15%. For the nine-month period, revenues fell to $189.8 million from $224.9 million, a decline of about 16%. The decrease in revenue was primarily attributed to declines in the Advisory and NaSa service lines, particularly in the Americas and Europe.

Operating income for the third quarter decreased to $4.3 million from $6.2 million year-over-year, while for the nine months, it dropped to $5.6 million from $18.1 million. Net income for the third quarter was $1.1 million, down from $3.2 million, and for the nine months, the company reported a net loss of $203,000 compared to a net income of $9.0 million in the prior year. Earnings per share for the third quarter were $0.02, down from $0.07, and for the nine months, the loss per share was $(0.00) compared to earnings of $0.19.

Total current assets decreased to $96.9 million as of September 30, 2024, from $112.8 million at the end of 2023, with cash and cash equivalents dropping significantly from $22.6 million to $9.7 million. Total assets also fell to $227.1 million from $247.3 million. Long-term debt decreased from $79.2 million to $66.2 million during the same period.

Strategically, the company completed the acquisition of Ventana Research, Inc. on October 31, 2023, for a total purchase price of $1.0 million in cash and an estimated earn-out of $1.7 million. Additionally, in September 2024, ISG agreed to sell its Automation service line to UST for $27 million, with $20 million paid at closing and $7 million held in escrow contingent on revenue milestones.

Operating expenses for the third quarter decreased by approximately 13% to $56.9 million, primarily due to lower contract labor and compensation expenses. The effective tax rate for the third quarter was notably high at 60.2%, compared to 33.2% in the previous year, influenced by earnings and losses in certain foreign jurisdictions.

The company continues to focus on strengthening its market position and developing new services, with a significant portion of its revenue derived from project-based fees and recurring revenue streams. As of September 30, 2024, ISG had approximately $20.6 million available under its share repurchase program, reflecting ongoing efforts to manage capital effectively.