FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1999.
Commission File Number: 0-15692
TOTAL RESEARCH CORPORATION
--------------------------
(Exact name of Registrant as specified in its Charter)
DELAWARE 22-2072212
-------- ----------
(State of Incorporation) (IRS Employer Identification No.)
Princeton Corporate Center, 5 Independence Way
Princeton, New Jersey 08543-5305
--------------------- ----------
(Address of principal executive offices) (Zip Code)
(609) 520-9100
--------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months or such shorter period that the registrant was required
to file such reports, and (2) has been subject to such filing requirements for
the past 90 days.
YES X NO
--- ---
As of February 10, 2000, the Registrant had 12,369,231 shares of Common Stock,
outstanding.
<PAGE>
PART I. FINANCIAL STATEMENTS.
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
TOTAL RESEARCH CORPORATION
--------------------------
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
DECEMBER 31, JUNE 30,
1999 1999
(UNAUDITED) (AUDITED)
----------- ---------
ASSETS
- ------
<S> <C> <C>
Current assets
Cash and cash equivalents..................................................... $5,901,082 $ 5,203,383
Accounts receivable, less allowance for doubtful accounts
of $110,000 at December 31, 1999 and at June 30, 1999....................... 8,187,129 7,068,199
Cost and estimated earnings in excess of billings on
uncompleted contracts....................................................... 4,390,673 3,248,270
Deferred taxes................................................................ 330,000 330,000
Prepaid expenses and other current assets..................................... 816,207 585,262
---------- ----------
Total current assets 19,625,091 16,435,114
Fixed assets, less accumulated depreciation of $4,902,915 and
$4,553,729, respectively...................................................... 2,585,800 2,609,152
Goodwill, net of accumulated amortization of $418,103 and
$379,181, respectively....................................................... 1,605,774 1,644,696
Deferred taxes.................................................................. 264,000 264,000
Other assets.................................................................... 821,675 763,767
---------- ----------
$24,902,340 $21,716,729
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Revolving line of credit...................................................... $ 215,992 $ 282,027
Accounts payable.............................................................. 4,032,246 4,038,566
Accrued expenses and other current liabilities................................ 2,933,584 3,512,938
Billings in excess of costs and estimated earnings............................ 5,943,667 3,373,665
Income taxes payable.......................................................... 680,051 714,059
---------- ----------
Total current liabilities 13,805,539 11,921,255
Other long-term liabilities................................................... 645,626 716,605
---------- ----------
14,451,165 12,637,860
---------- ----------
Commitments and contingencies
Stockholders' equity
Common stock-authorized 20,000,000 shares $.001 par value, per share,
12,341,524 issued at December 31, 1999 and 11,761,608
at June 30, 1999............................................................ 12,342 11,762
Additional paid-in capital.................................................... 7,095,054 6,627,782
Retained earnings............................................................. 4,405,955 3,134,938
Accumulated other comprehensive income........................................ (113,487) (35,925)
---------- ----------
11,399,864 9,738,557
Less: Treasury stock, at cost................................................ (948,689) (659,688)
---------- ----------
Total stockholders' equity................................................. 10,451,175 9,078,869
---------- ----------
Total liabilities and stockholders' equity...................................... $24,902,340 $21,716,729
=========== ===========
(See notes to the consolidated financial statements)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TOTAL RESEARCH CORPORATION
--------------------------
CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED UNAUDITED
--------- ---------
THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------
DEC. 31, DEC. 31, DEC. 31, DEC. 31,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues........................... $12,112,292 $9,625,625 $25,903,242 $19,695,071
Direct costs....................... 6,890,282 4,913,071 13,821,129 9,866,070
----------- ---------- ----------- -----------
Gross profit....................... 5,222,010 4,712,554 12,082,113 9,829,001
Operating expenses.............. 4,219,221 3,848,278 10,118,937 8,149,772
----------- ---------- ----------- -----------
Income from operations............. 1,002,789 864,276 1,963,176 1,679,229
Interest income.................... 39,757 37,787 86,634 69,880
----------- ---------- ----------- -----------
Income before income
taxes............................. 1,042,546 902,063 2,049,810 1,749,109
Income taxes.................... 396,167 362,577 778,793 688,690
----------- ---------- ----------- -----------
Net income......................... $ 646,379 $ 539,486 $ 1,271,017 $ 1,060,419
----------- ---------- ----------- -----------
Earnings per share
Basic...........................$ .05 $ .05 $ .11 $ .09
Diluted.........................$ .05 $ .04 $ .10 $ .08
Weighted average common shares
Outstanding - Basic............. 11,990,062 11,466,921 11,990,107 11,460,508
- Diluted........... 13,300,195 12,422,398 13,090,004 12,502,591
(See notes to the consolidated financial statements)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TOTAL RESEARCH CORPORATION
--------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
DECEMBER 31, DECEMBER 31,
1999 1998
------------ ------------
<S> <C> <C>
Net cash provided by operating activities....................................... $988,277 $836,423
---------- ----------
Cash flows from investing activities:
Purchases of equipment........................................................ (325,833) (787,216)
---------- ----------
Cash flows from financing activities
Proceeds from long-term debt.................................................... (66,035) 430,689
Proceeds from issuance of common stock.......................................... 467,853 2,063,864
Stock repurchase................................................................ (289,001) -
---------- ----------
Net cash provided by financing activities....................................... 112,817 2,494,553
---------- ----------
Effect of exchange rate changes on cash......................................... (77,562) (35,458)
---------- ----------
Net increase in cash and cash equivalents....................................... 697,699 2,508,302
Cash and cash equivalents at beginning of period................................ 5,203,383 2,097,347
---------- ----------
Cash and cash equivalents at end of period ..................................... $5,901,082 $4,605,649
========== ==========
(See notes to the consolidated financial statements)
</TABLE>
<PAGE>
TOTAL RESEARCH CORPORATION
--------------------------
NOTES TO CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS
----------------------------------------------------
DECEMBER 31, 1999 AND 1998
--------------------------
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Article 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the six months ended December 31, 1999 are
not necessarily indicative of the results that may be expected for the year
ending June 30, 2000.
The Consolidated Balance Sheet at June 30, 1999 has been derived from the
audited financial statements at that date but does not include all of the
information and footnotes required by generally accepted accounting principles
for complete Financial Statements.
For further information, refer to the Consolidated Financial Statements and
Footnotes thereto included in the Company's Annual Report on Form 10K for the
year ended June 30, 1999.
NOTE 2 - SEGMENT INFORMATION
The Company operates in one principal industry segment: marketing research
services. Geographic financial information for the three-month and six-month
periods ended December 31, 1999 and 1998 (in 000's) is as follows:
<TABLE>
<CAPTION>
Three Months Six Months
------------ ----------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues
United States................... $ 8,460 $ 6,524 $18,470 $13,665
Europe.......................... 3,652 3,102 7,433 6,030
-------- ------- ------- -------
Totals................................... $ 12,112 $ 9,626 $25,903 $19,695
Operating Income.........................
United States................... 998 777 1,895 1,438
Europe.......................... 45 125 155 311
-------- ------- ------- -------
Totals................................... $ 1,043 $ 902 $ 2,050 $ 1,749
</TABLE>
NOTE 3 - MEASUREMENT OF GOODWILL
Goodwill has been recorded in relation to the excess of the purchase
price over the fair values of the identified assets acquired. The Company
amortizes goodwill over twenty-five years. The carrying value of goodwill is
evaluated periodically in relation to the operating performance and future
undiscounted net cash flows of the underlying business. Adjustments are recorded
if the sum of the expected future net cash flows is less than the book value of
the goodwill.
NOTE 4 - COMMON STOCK
On June 30, 1999, the Company's Board of Directors authorized a stock
repurchase program of up to one million shares of the Company's common stock.
Shares under the program are to be repurchased at management's discretion in
open market transactions. At December 31, 1999, the Company had repurchased
76,250 shares at a total cost of approximately $289,000. Subsequent to December
31, 1999, the Company has not repurchased any additional shares.
<PAGE>
ITEM II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
----------------------------------------------------------------------
RESULTS OF OPERATIONS
The Company is a full-service consultative marketing research
corporation that provides marketing research and information to assist its
clients with the pricing and positioning of new or existing products, customer
loyalty measurements, brand equity issues and other marketing concerns
The following table sets forth, for the periods indicated, certain
historical income statement data as a percentage of gross revenues.
STATEMENT OF INCOME DATA:
(Expressed as a percentage of revenues)
Quarter Ended
December 31,
------------
1999 1998
---- ----
Revenues 100.0% 100.0%
Direct costs 56.9% 51.0%
----- -----
Gross profit 43.1% 49.0%
Operating expenses 34.8% 40.0%
----- -----
Income from operations 8.3% 9.0%
Interest income 0.3% 0.4%
----- -----
Income before income taxes 8.6% 9.4%
Provision for income taxes 3.3% 3.8%
----- -----
Net income 5.3% 5.6%
RESULT OF OPERATIONS - SECOND QUARTER FISCAL 2000 AS COMPARED TO SECOND QUARTER
FISCAL 1999.
- --------------------------------------------------------------------------------
The Company's revenues increased approximately 26 percent from the
second quarter of fiscal 1999 to the second quarter of fiscal 2000. This
increase in revenues was the result of the investments made in its sales
infrastructure in fiscal 1999 and two multi-million dollar projects completed in
the Customer Loyalty and Strategic Marketing Services Divisions (both domestic
and international) during the period. The Global Life Sciences Division revenues
decreased during the second quarter of fiscal 2000 as compared to the same
period in fiscal 1999 as a result of lower sales during the second half of
fiscal 1999.
<PAGE>
RESULT OF OPERATIONS - SECOND QUARTER FISCAL 2000 AS COMPARED TO SECOND QUARTER
FISCAL 1999 (CONT'D).
- --------------------------------------------------------------------------------
The gross profit of the Company increased from approximately $4,710,000
in the second quarter of fiscal 1999 to approximately $5,225,000 in the second
quarter of fiscal 2000, or an increase of approximately $515,000. Gross profit
decreased as a percentage of revenues from 49.0 percent in the second quarter of
fiscal 1999 to 43.1 percent of revenues in the second quarter of fiscal 2000 due
principally to data collection and data processing costs associated with two
multi-million dollar projects that had a significant negative effect on the
overall gross profit percentage for the Company. The Company continues to
generate gross profits of greater than 50 percent on most of its research
projects.
Operating costs increased to approximately $4,220,000 in the second
quarter of fiscal 2000 from approximately $3,848,000 in the second quarter of
fiscal 1999, or approximately $372,000. The increase can be attributed to
additional costs associated with increasing the capacity of its Tampa phone
center as well as additional labor costs. However, as a percentage of revenues,
it decreased from approximately 40.0 percent in the second quarter of fiscal
1999 to approximately 34.8 percent in the second quarter of fiscal 2000. The
reduction of the percentage of operating expenses to revenues is mainly the
result of the Company maintaining strong control of its non-project related
expenses as it continues to expand.
Income before taxes increased to approximately $1,043,000 in the second
quarter of fiscal 2000 from approximately $902,000 in the second quarter of
fiscal 1999, or approximately $141,000. However, it decreased as a percentage of
revenues from 9.4 percent in the second quarter of fiscal 1999 to 8.6 percent in
the second quarter of fiscal 1999 for the reasons set forth above.
The provision for income taxes increased due to the increased income of
the Company during the second quarter of fiscal 2000. The Company increased its
net income approximately $106,000 from approximately $540,000 in the second
quarter of fiscal 1999 to approximately $646,000 in the second quarter of fiscal
2000. However, as a percentage, it decreased from 5.6 percent in the second
quarter of fiscal 1999 to 5.3 in the second quarter of fiscal 2000 for the
reasons set forth above.
STATEMENT OF INCOME DATA:
(Expressed as a percentage of revenues)
Six Months Ended
December 31,
------------
1999 1998
---- ----
Revenues 100.0% 100.0%
Direct costs 53.4% 50.1%
----- -----
Gross profit 46.6% 49.9%
Operating expenses 39.0% 41.4%
----- -----
Income from operations 7.6% 8.5%
Interest income 0.3% 0.4%
----- -----
Income before income taxes 7.9% 8.9%
Provision for income taxes 3.0% 3.5%
----- -----
Net income 4.9% 5.4%
<PAGE>
RESULTS OF OPERATIONS - SIX MONTHS YEAR TO DATE FISCAL 2000 AS COMPARED TO SIX
- --------------------------------------------------------------------------------
MONTHS YEAR TO DATE FISCAL 1999
- -------------------------------
Revenues increased approximately 32 percent during the first six months
of fiscal 2000 as compared to the first six months of fiscal 1999. Similar to
the second quarter analysis, this increase in revenues was the result of the
investments made in its sales infrastructure in fiscal 1999 and two
multi-million dollar projects completed in the Customer Loyalty and Strategic
Marketing Services Divisions (both domestic and international) during the
period. The Global Life Sciences Division revenues decreased during the first
six months of fiscal 2000 as compared to the same period in fiscal 1999 as a
result of lower sales effort during the second half of fiscal 1999.
The gross profit increased from approximately $9,830,000 for the first
six months of fiscal 1999 to approximately $12,080,000, or $2,250,000. However,
as a percentage of revenues, gross profit decreased from 49.9 percent for the
six-month period in fiscal 1999 to 46.6 percent in fiscal 1999. However, as
stated in the second quarter analysis, the gross profit percentage for the
six-month period was significantly reduced by two multi-million dollar projects
that included a large amount of data collection and data processing costs. The
Company continues to generate gross profits of greater than 50 percent on most
of its research projects.
Operating costs increased from approximately $8,150,000 for the first
six months of fiscal 1999 to approximately $10,120,000 for the first six months
of fiscal 2000, or $1,970,000. The increase can be attributed to additional
costs associated with transitioning the Company into an integrated marketing
services company including increasing the capacity of its two phone centers,
startup costs associated with BlinkE(TM), a new wholly-owned subsidiary, costs
associated with developing new web products and services, additional marketing
costs for new collateral material as well as additional labor costs. However, as
a percentage of revenues, operating costs decreased from 41.4 percent of
revenues in the first six months of fiscal 1999 to 39.0 percent of revenues in
the first six months of fiscal 2000. The reduction of the percentage of
operating expenses to revenues is mainly the result of the Company continuing to
control its non-project related expenses as it continues to expand.
Income before taxes increased to approximately $2,050,000 for the first
six months of fiscal 2000 from approximately $1,750,000 for the first six months
of fiscal 1999, or approximately $300,000. However, as a percentage of revenues,
it decreased from 8.9 percent for the first six months of fiscal 1999 to 7.9
percent for the first six months of fiscal 2000 for the reasons set forth above.
The provision for income taxes increased due to the increased income
for the first six months of fiscal 2000. Overall, the Company increased its net
income approximately $210,000 from approximately $1,060,000 for the first six
months of fiscal 1999 to approximately $1,270,000 for the first six months of
fiscal 2000. However, as a percentage, it decreased from 5.4 percent for the
first six months of fiscal 1999 to 4.9 percent for the first six months of
fiscal 2000 for the reasons set forth above.
LIQUIDITY AND CAPITAL RESOURCES
At December 31, 1999, the Company's working capital increased
approximately $1,306,000 to approximately $5,820,000 from approximately
$4,514,000 at June 30, 1999, and the current ratio increased to 1.42 from 1.38.
For the six-month period ended December 31, 1999, the Company generated
positive cash from operations of approximately $988,000. In addition, the
Company received approximately $468,000 from exercised stock options resulting
in total additional cash available during the period of approximately
$1,456,000. The Company used its cash to increase its cash reserves by
approximately $698,000, purchase approximately $326,000 of equipment, repurchase
approximately $289,000 of Company stock, and pay down bank debt by approximately
$66,000.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES (CONT'D)
The Company has a loan agreement with Summit Bank, located in
Princeton, NJ. The loan agreement contains the following:
o A one year $2.5 million revolving line of credit at a variable
interest rate based on certain financial ratios. As of December
31, 1999, the rate is the prime rate less one-half percent (prime
rate at December 31, 1999 was 8.5%). As of December 31, 1999, the
Company was in compliance with all of the financial ratios and has
not borrowed against this line.
o A three-year $500,000 term line secured by equipment, furniture
and fixtures at an interest rate based on certain financial
ratios. As of December 31, 1999, the rate is the prime rate less
one-half percent. As of December 31, 1999, the Company has not
borrowed against this line.
In addition, the Company has a bank overdraft facility of
(pound)300,000 with Barclays Bank in London, UK. The borrowings are charged at a
rate of 3 percent above the UK Base Rate (base rate at December 31, 1999 was
5.5%). At December 31, 1999 the Company had borrowed approximately
(pound)134,000 (approximately $216,000) against this overdraft facility.
The Company defines backlog as the unearned portions of its existing
contracts at each balance sheet date. The Company's backlog at December 31, 1999
was approximately $16,500,000 as compared to a backlog of approximately
$11,500,000 at December 31, 1998. The amount of backlog at any time may not be
indicative of intermediate or long-term trends in the Company's operations.
The Company believes that its current sources of liquidity and capital
resources will be sufficient to fund its long-term obligations and working
capital needs for the foreseeable future.
RECENT TRENDS
During fiscal 1999 and continuing into fiscal 2000, the Company is
transitioning from a full-service market research company to an integrated
marketing services company. Several initiatives have been announced during this
time to effectuate this transition.
In June of 1999, the Company established BlinkE(TM), a wholly owned
subsidiary, that integrates the Company's advanced marketing research
capabilities with innovative Internet strategies in business-to-business and
retail e-commerce applications including proactive strategy development and
advanced web site implementation.
In July of 1999, the Company introduced Total e-Survey(TM), a
web-survey product that will combine its advanced market research technologies
and international expertise with web survey capabilities. The online surveys
will be offered as part of its complete, integrated data collection and analysis
systems. The Company anticipates using Total e-Survey(TM) for strategically
designed surveys on topics of current interest as well as client-specific
programs.
In January of 2000, the Company introduced EquiTrend OnLine(R) , the
Company's new comprehensive study of brand equity that provides subscribers with
a unique, in-depth understanding of consumers' perceptions of brands, perceived
quality, competitive positioning, image and market potential. EquiTrend
OnLine(R) utilizes Internet technology to provide immediate, in-depth studies
that uncover the critical brand quality perceptions of over 30,000 respondents,
ages 15 and over, on over 1,200 major brands across 21 categories.
<PAGE>
During the first six months of fiscal 2000 the Company incurred an
increasing amount of costs related to transitioning the Company to an integrated
services company. These transitional costs are described above, and the Company
anticipates that it will continue to incur additional transitional costs. The
Company has also invested in information technology equipment to support this
transition. The Company has already spent several hundred thousand dollars
during fiscal 2000 and is committed to purchasing approximately a million
dollars in additional information technology equipment in fiscal years 2000 and
2001.
IMPACT OF YEAR 2000
The Year 2000 issue concerns the ability of computer hardware and
software to distinguish between the year 1900 and the year 2000. An inability to
make this distinction could result in computer application failure.
During calendar 1999, the Company completed a detailed assessment of
all its information technology and non-information technology hardware and
software with regard to the Year 2000 issue, with special emphasis on mission
critical systems. Information and non-information technology hardware and
software were inventoried and those not Year 2000 ready were identified,
remediated (i.e., corrected or replaced) and tested to ensure that they would,
in fact, operate as desired according to Year 2000 requirements. The Company
expensed approximately $150,000 during calendar 1999 in connection with
remediating its systems.
As a result of its Year 2000 readiness efforts, the Company's mission
critical information technology and non-information technology systems
successfully distinguished between the year 1900 and the year 2000 on January 1,
2000, without any mission critical application failure. However, the Company
will continue to monitor its mission critical computer applications throughout
the year 2000 to ensure that any latent year 2000 matters that may arise are
addressed promptly.
IMPACT OF INFLATION
Inflation had no material effect on the financial performance of the
Company during the second quarter of fiscal 1999.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are no material legal actions, proceedings or litigations pending or
threatened to the knowledge of the Company.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
(a) The Annual Meeting of Stockholders of the Company was held on December 8,
1999, at which meeting the stockholders voted to elect directors of the
Company, approve amendments to the Certificate of Incorporation to provide
for a Classified Board of Directors and to increase the number of
authorized shares of Common Stock, approve the amendments to the 1995 Stock
Incentive Plan, and to ratify the appointment of Ernst & Young, LLP as the
Company's independent auditors for the fiscal year ending June 30, 2000.
The results of the matters voted on the Annual Meeting are shown below.
(b) The nominees for election as directors of the Company are listed below,
together with the number of votes cast for, against, and withheld with
respect to each such nominee, as well as the number of non-votes with
respect to each such nominee:
Nominee For Against Withheld Non-Voting
------- --- ------- -------- ----------
Albert Angrisani 10,606,974 21,374 - -
David Brodsky 10,607,074 21,274 - -
John P. Freeman 10,607,074 21,274 - -
George Lindemann 10,607,074 21,274 - -
Howard Shecter 10,607,074 21,274 - -
Edward Shrawder 10,607,074 21,274 - -
Lorin Zissman 10,606,974 21,374 - -
(c) Other matters voted upon at the meeting and the results of those votes are
as follows:
<TABLE>
<CAPTION>
For Against Abstain Unvoted
--- ------- ------- -------
<S> <C> <C> <C> <C>
Amendment to the Certificate of Incorporation
to provide for a Classified Board of Directors 6,181,671 423,088 37,139 3,986,450
Amendment to the Certificate of Incorporation
to increase the number of authorized shares of
Common Stock from 20,000,000 to 50,000,000 10,426,683 182,508 19,157 -
Approval of amendments to the 1995 Stock
Incentive Plan 6,140,227 446,804 54,867 3,986,450
Ratification of Ernst & Young LLP as
the Company's Independent auditors 10,338,251 283,647 5,850 600
</TABLE>
<PAGE>
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
A. None.
B. None.
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of
1934, the undersigned has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
TOTAL RESEARCH CORPORATION
(Registrant)
/s/ Albert Angrisani
----------------------------
BY: Albert Angrisani
Chief Executive Officer
/s/ Richard G. Morrow, Jr.
----------------------------
BY: Richard G. Morrow, Jr.
Chief Accounting Officer
Dated: February 11, 2000
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000803058
<NAME> TOTAL RESEARCH CORPORATION
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> DEC-31-1999
<EXCHANGE-RATE> 1
<CASH> 5,901,082
<SECURITIES> 0
<RECEIVABLES> 8,297,129
<ALLOWANCES> 8,297,129
<INVENTORY> 0
<CURRENT-ASSETS> 19,625,091
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 24,902,340
<CURRENT-LIABILITIES> 13,805,539
<BONDS> 0
0
0
<COMMON> 12,342
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 24,902,340
<SALES> 0
<TOTAL-REVENUES> 12,112,292
<CGS> 6,890,282
<TOTAL-COSTS> 6,890,282
<OTHER-EXPENSES> 4,219,221
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (39,757)
<INCOME-PRETAX> 1,042,546
<INCOME-TAX> 396,167
<INCOME-CONTINUING> 646,379
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 646,379
<EPS-BASIC> 0.05
<EPS-DILUTED> 0.05
</TABLE>
