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Earnings Calls: 
Gartner First Quarter Earnings Call
Author: Maclintosh Kuhlengisa
123jump.com
Last Update: 1:47 PM EDT May 11 2008


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The IT research and advisory company reported earnings of $14.59 million or 14 cents a share, an increase of 63% versus $8.98 million or 9 cents a share in 2007 as research contract value increased 17%, and revenue grew 10% to $290 million. Role-based product offerings were a major contributor to the strong growth in research contract value. The robust demand for services reflects the critical role played in ensuring the efficient operation of clients'' IT programs.


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Our pricing strategy is on the price of our new products, we do not discount our new products to any of our clients and so those products sell for $15,000, that’s to all the clients. There’s no volume discount kind of program or something like that.

For these legacy agreements which we have, which people have, we tend to increase those at sort of a cost of living along with the new products, cost of living, and then upgrade people from the older, less expensive products to these newer high function products, which gives us an effective price lift with the client getting a new, better product for that additional pricing.

Laura Lederman (William Blair): Can you also talk a little bit about acquisitions?

Eugene A. Hall: We have a business development function. We see acquisitions a very important part of our strategy and we are always looking for opportunities where we can contribute to our business through acquisitions.
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