Information Services Group (III) has reported 58.83 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $0.73 million, or $0.02 a share in the quarter, compared with $1.78 million, or $0.05 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $3.01 million, or $0.08 a share compared with $3.49 million or $0.09 a share, a year ago. 

Revenue during the quarter went up marginally by 1.02 percent to $51.93 million from $51.40 million in the previous year period. Gross margin for the quarter contracted 108 basis points over the previous year period to 40.38 percent. Total expenses were 94.96 percent of quarterly revenues, up from 93.86 percent for the same period last year. That has resulted in a contraction of 110 basis points in operating margin to 5.04 percent.

Operating income for the quarter was $2.62 million, compared with $3.15 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $6.60 million compared with $6.36 million in the prior year period. At the same time, adjusted EBITDA margin improved 33 basis points in the quarter to 12.70 percent from 12.37 percent in the last year period.  

"We had a solid third quarter led by ISG Digital Services, which represented more than 20 percent of firm revenues in the third quarter as clients in all regions continue to transform through broad adoption of digital technologies," said Michael P. Connors, chairman and chief executive officer. "Whether it is large agri-chemical and healthcare companies in the Americas transforming to the agile enterprise or large automotive and energy clients in Europe creating new analytics and digital platforms, we are seeing growth opportunities as the market adopts third-generation deals and digital technologies.