Good day, ladies and gentlemen. And welcome to the Q2 2008 Forrester Research Earnings Conference Call. At this time all participants are in listen-only mode. (Operator instructions) I would now like to turn the call over to Karyl Levinson, Vice President and Corporate Communications. Please proceed, ma'am.

Good morning, and thank you for joining our second quarter 2008 call. With me today are George Colony, Forrester's Chairman of the board and Chief Executive Officer, Charles Rutstein, Forrester's Chief Operating Officer, and Mike Doyle, Forrester's Chief Financial Officer. Mike will open the call and provide detail on our financial results for the quarter. George will follow Mike and provide a strategic update on the business and our role-based strategy. After George completes his review, we'll open the call up for Q&A. A replay of this call will be available until August 13, 2008 and can be accessed by dialing 888-286-8010. Please reference the pass code 28361250. This call is also available via webcast and will be archived in the investor section at Forrester.com. Before we begin, I'd like to remind you that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expect”, “believe”, “anticipate”, “intend”, “plan”, “estimate”, or similar expressions are intended to identify these forward-looking statements. These statements are based on the company's current plans and expectations and involve risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in the forward-looking statements. Some of the important factors that could cause actual future activities and results to differ are discussed in our reports and filings with the Securities and Exchange Commission. The company undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. I'll now hand the call over to Mike Doyle.

Thanks, Karyl, and good morning. I'll now begin my review of the financial performance for Forrester's second quarter and year-to-date results, the balance sheet of June 30th, our second quarter metrics and the outlook for the third quarter and full-year 2008. Please note that the income statement numbers I'm reporting are pro forma and exclude the following items. Amortization of intangibles, non-cash stock-based compensation expense, professional fees related to the stock option investigation and restatement of the company's historical financial statements, net realized gains from securities and non-marketable investments. Also, we continue to book an effective tax rate at 39% for pro forma purposes. The anticipated effective tax rate for 2008 is approximately 40%. As we reviewed in our last call, we began the year with good momentum, finishing the first quarter in line with our plan. Today, I'm happy to report that we have continued to maintain the positive momentum and achieved strong results for the second quarter 2008. We also announced today the acquisition of JupiterResearch which will continue to strengthen our syndicated business. With today's release, we're reporting second quarter 2008 revenues of $63.5 million and pro forma operating margin of 20%. Revenue increased 15% versus prior year with 2% attributable to foreign exchange. Operating margin performance was at the upper end of our guidance and two points above prior year. Pro forma earnings per share came in at $0.37 per share, just above the upper end of our guidance, and up 19% versus year ago. For the six months ended June 30th, 2008, we're reporting revenues of $118.5 million, up 16% from the same period a year ago. Pro forma operating margin increased 1% to 17% for the six month period ended June 30th, from 16% during 2007. Pro forma earnings per share were $0.63, an…

Thanks, Mike. I'd like to welcome everyone to Forrester 2008 Q2 Call. In my remarks, I'd be addressing four topics. Number one, Forrester's three business imperatives, number two, new products, number three, the economy and projected tech spending for the remainder of 2008, and then finally the acquisition and integration plan for JupiterResearch. As Mike had noted, the company's momentum remains strong. Despite macro economic uncertainty, renewals and new business remain on track for the year. As I've referenced on past quarterly calls, Forrester has three business imperatives. Number one, to complete the build out of role-based strategy, two to grow our sales platform, and three to increase the quotient of our business that is syndicated. I'm happy to report that we had much progress on our role-based transition. The company's operational report card which tracks our role progress has moved from C+ to B- to B to B+ over the last four successive quarters. While we have more work to do we feel that the company is successfully navigating its voyage to be 100% focused on roles. The second quarter is our biggest events quarter of the year and roles were much in evidence at these forums, with role-based tracks, role-focused presentations, and Forrester Leadership Board sessions running throughout the five events. The forums all performed according to our plans. Forrester's researching and consulting continues to become more relevant to their focus on roles and roles increased relevancy and higher relevancy will ultimately increase new business win rates and renewal rates. With roles as our focus we are not lacking for market potential. The 4 million executives that are 19 roles represent the revenue potential of $9 billion. To-date we have penetrated less than 5% of our target market. Forrester's second business imperative is to expand our sales platform.…

(Operator instructions) Your first question comes from the line of Laura Lederman with William Blair. Please proceed with your question.

Thank you so much for taking my call and congratulations on the acquisition and a good quarter. Just a few follow-up questions on the acquisition. You mentioned that it's slightly dilutive for this year, can you give us a sense of if that is a penny for the year, just give us a sense. And also revenue, how much would you expect to have in Q4 and that sort of thing? You know, I noticed that they did $4 million last year, can you take that $4 million divide it by four and assume there's $3.5 million revenue in quarter or was there deferred write-off that you would be getting that much revenue addition which is there? Thanks.

Laura, it's Mike. Yes. Relative to the dilution, and obviously, there's integration expenses and a variety of things. We anticipate somewhere between $0.01 to $0.02 this year per share. Relative to revenue, we're looking at for, from August 1st forward, approximately $5 million obviously we'll be finalizing a number of things as we work our way in and finalize deferred revenue adjustments and that sort of thing. But we're estimated approximately $5 million.

And I wasn't quite sure if I misunderstood the last comment before the Q&A that we would look for similar acquisition soon? Or similar I wasn't quite sure what that statement was.

Yes. Laura, this is George. Just saying that we remain very active on the M&A front. I mean we have spent a lot of time in this area right now as you might imagine.

Yes. If you look at M&A, would you expect it more to be in the marketing side, the IT side, international versus U.S., can you give us a rough feel or all of the above? I'd say all the above – I mean having now brought Jupiter together with M&SA, that we would do with M&S deal that should speak, any controls there, just I think it's shifts a lot (inaudible) M&S to absorb them over the next 18 months. So…

That being said, vote for on the market is on the market.

Exactly. Yes.

One final question on Jupiter which is -- can you give a sense of how much the revenue grew last year? It was 14 up from what and gives us a sense of the margins that they were running.

Laura, their historical revenue growth was I'd say low double digits in terms of a percentage basis. We obviously think over time we are going to increase that. I think we provide resources to the folks at Jupiter. And they're very talented group that I think the combination is going to bode very well for the combined entities. And relative to margin, I think they were -- their margin numbers were below ours, but I'm not going to give you too much color there other than that they were below ours, probably by 5 to 6 points, but again as we combine the companies, I'm very comfortable that as we go into 2009, we're going to have them to the right place just because -- and we're going to get it through -- continue to grow the business. We get our leverage on the top line I think more so that as George mentioned then on the expense side.

Okay, I'm shifting gears a little bit. Two more questions and obviously I'll pass it on. Are you looking at all at a price increase in the core business, kind of what are your thoughts on that? And also international growth continues to lag U.S., is that another area that you hope to work on through acquisition or if you don't work on through acquisition, how would you expect to be able to accelerate? Excuse me.

Hey Laura, it's Charles. Let me start with the pricing one. As you know we do tend to look at pricing on a six-month basis. We did do some price increases in January of this year around user group, around data and things kind of around the margin. We did not do a price increase in July of this year. The reason for that is a couple fold. The biggest driver there is we're looking at -- we're doing a major look at pricing and packaging right now. I would say a deeper look than we have done in many, many years. That work was not complete in time for a July change. And therefore we did not do a July change. I would look for a change in the January cycle there on the pricing and packaging front. Last comment, maybe on that one, is in the back half of the year, we are taking a closer look at discounting and trying to get more of the contracts closer to the list price, which of course has the same net affect.

Are you talking about new contracts or old contracts?

All contracts. As in any portfolio business, you have a distribution, some that are right at list price and some that are not there. So, of course that tells us where we need to focus. With respect to the international question, we saw one point of movement I think Mike in the quarter on the revenue line. I'm not sure that's significant. I think you're just seeing variability there. In fact, I'd say I'm more confident about our international growth and I have been in many years. We saw some strength in the quarter on the bookings front in the overseas business both in Europe as well as elsewhere around the world.

Yes. To echo that on the international front, Laura, I would agree, I think relative to our internal targets, we were very happy with the way our European business in particular performed. All three of our client groups were better than what we'd hoped for. So I'm with Charles, I think that's just, I think it's not significant at this stage.

Laura, this is George, I think we kind of feel we're on a 70/30 path here, and we'll continue that

Yes.

Final question, which is a very broad one. If you look at technology spending, you mentioned that you expect it to weaken a little bit, have you seen any weakness at all, your quarter was good, but any pockets of weakness like financial services would be a obvious suspect or retailers or anything if you just look at the buying segments, where is it strong in your business and where is it not as strong? Excuse me.

Hey Laura, it's Charles again. I would say we saw certainly some uncertainty in the quarter, you saw some longer sales cycles, you saw a need for more signatures as I think you would expect in this environment. I would say it's not necessarily concentrated solely in particular industries. For example, in some of the industries you mentioned, in financial services, in travel, we had reps who concentrate on those spaces who exceeded their plans for the quarter. I guess the way I would characterize it is that we're running the business in a way to accommodate those changes in the environment for the reps to have greater coverage in their pipelines. We're looking for them to get paperwork in front of clients earlier giving us more time to execute within the quarter. And so, that's why we've left the guidance unchanged for the back half of the year.

Thank you so much and congratulations again on Jupiter.

Thanks, Laura.

(Operator instructions) Your question comes from Bill Sutherland with Boenning & Scattergood, Inc. Please proceed with your question. Michael Roomberg– Boenning & Scattergood, Inc.:

Mike, this is Mike Doyle. There's really the couple of things going on there. First, as we mentioned, we've got activities with Jupiter. And so, that's obviously going to suppress our activities a bit and as was the case last year, I mean our third quarter revenues are slightly below our second quarter revenues, which is, again, it's a natural cycle for us. So we get less leverage, so, you know, again we're a people company, people costs, so we're a little bit more fixed and then the last item is really intangibles, which again gets to the concept of bringing Jupiter on board that we've got (inaudible) increase on the amortization side. Michael Roomberg– Boenning & Scattergood, Inc.: Right. Okay. And so you don't foresee that as an ongoing contraction of margins going forward?

No, I don't. I think that we said this year, I think we're looking at probably $0.01 to $0.02, but what we did is we tightened up our EPS targeted range, we were at $1.20 to $1.36. Last guidance for full year with a $1.28 to $1.34, so we're comfortable this year staying basically within our guidance for earnings per share, and we think that Jupiter's going to be accretive to Forrester in 2009. So, we don't expect that this is going to have an adverse impact over our long-term goals. Michael Roomberg– Boenning & Scattergood, Inc.: Great. That's all I got. Thanks.

You bet.

There are no further questions at this time.

Okay. Thank you very much for joining the call. And have a nice day.

Thank you very much, everyone.

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect.