Results of Operations The following table sets forth selected financial data as a percentage of total revenues for the periods indicated: Revenues. Total revenues increased 80% to $157.1 million in the year ended December 31, 2000  from $87.3 million in the year ended December 31, 1999. Revenues from core research increased  86% to $120.5 million in the year ended December 31, 2000 from $64.7 million in the year ended  December 31, 1999. Increases in total revenues and revenues from core research were primarily attributable to an increase in the number of client companies to 2,378 at December 31, 2000 from 1,793  at December 31, 1999, an increase in the sales organization to 267 employees at December 31, 2000 from 153 employees at December 31, 1999, and sales of additional core research products to existing clients.  No single client company accounted for more than 2% of revenues for the year ended December 31, 2000. Years Ended December 31, 2000 and 1999 Year Ended December 31, 1998 1999 2000 Core research 76% 74% 77% Advisory services and other 24 26 23 Total revenues 100 100 100 Cost of services and fulfillment 36 32 29 Selling and marketing 34 36 37 General and administrative 11 11 12 Depreciation and amortization 4 4 5 Costs related to acquisition — 1 — Income from operations 15 16 17 Other income, net 5 4 5 Income before income tax provision 20 20 22 Provision for income taxes 8 7 8 Net income 12% 13% 14% Advisory services and other revenues increased 62% to $36.7 million in the year ended December 31, 2000 from $22.6 million in the year ended December 31, 1999. This increase was primarily attributable to increased demand for Forrester’s advisory services programs, the increase in research staff providing advisory services to 207 employees at December 31, 2000 from 125 at December 31, 1999, and the increase in the number of events held to eleven in the year ended December 31, 2000 from eight in the year ended December 31, 1999. Revenues attributable to customers outside the United States increased 108% to $41.1 million in the year ended December 31, 2000 from $19.8 million in the year ended December 31, 1999. Revenues attributable to customers outside the United States increased as a percentage of total revenues to 26% for the year ended December 31, 2000 from 22% for the year ended December 31, 1999. The increase in international revenues was primarily attributable to the continued expansion of our European headquarters in Amsterdam, Netherlands, and our UK Research Centre in London, England, the increase in sales personnel at each location, and our acquisition of FORIT GmbH in Frankfurt, Germany, on October 9, 2000. We invoice our international clients in US dollars, except for those billed by our UK Research Centre, which invoices clients in British pounds sterling. To date, the effect of changes in the currency exchange rate have not had a significant impact on our results of operations. Forrester Research | Annual Report 2000 f-4 | 5 Management’s Discussion and Analysis of Financial Condition and Results of Operations  (continued)