NEEDHAM, Mass. -- TechTarget, Inc. (NASDAQ: TTGT) today filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2009. TechTarget also announced today its results for the third quarter of 2009, and that the Company’s Audit Committee has concluded its previously disclosed investigation involving an improper accounting practice. The accounting practice related to certain customer credits being improperly removed as liabilities from the Company’s balance sheet. The Audit Committee conducted the investigation with the assistance of counsel and forensic accounting experts. Consistent with the Company’s November 9, 2009 press release, the Audit Committee has concluded that the improper conduct associated with the accounting practice was limited to a single individual, who was promptly terminated from his position upon discovery of the practice. The Audit Committee’s investigation found no other improper conduct in connection with any other accounting practice.

To correct the improper accounting related to the customer credits, the Company has recorded a net adjustment for the quarter ended September 30, 2009, which increased liabilities by $967,000 and decreased income before taxes by $967,000. The net adjustment accumulated over several years and includes $57,000 from 2004 to 2006, $362,000 from 2007, $561,000 from 2008 and ($13,000) for the nine months ended September 30, 2009. Total professional fees related to the investigation are approximately $1.5 million, of which approximately $1.2 million will be recorded in the 2009 fourth quarter results, with the remaining amount to be included in the first quarter of 2010.

As a result of filing its Form 10-Q for the quarter ended September 30, 2009, the Company is now current with its Securities and Exchange Commission reporting requirements and believes that it is now in compliance with Nasdaq’s Listing Rule 5250(c)(1), and the Company expects to receive confirmation of this compliance from Nasdaq in the coming days.

In addition, the Company is announcing that Eric Sockol has announced his resignation as Chief Financial Officer of TechTarget. Mr. Sockol will remain in his role for a brief transition period while the Company conducts the search for his replacement.

Third Quarter Results

Total revenue for the third quarter of 2009 was $23.1 million compared to $27.0 million for the comparable prior year quarter. Online revenue was $18.2 million compared to $20.4 million for the third quarter of 2008 and represented 79% of total revenues. Total gross profit margin was 72% compared to 69% for the comparable prior year quarter. Online gross profit margin was 74% compared to 73% for the comparable prior year quarter.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, as further adjusted for stock-based compensation) for the third quarter of 2009 was $4.4 million compared to $6.2 million for the comparable prior year quarter. The third quarter of 2009 includes a prior period adjustment of $967,000 which reduced reported adjusted EBITDA.

Net loss for the third quarter of 2009 was $1.4 million compared to a net income of $707,000 for the comparable prior year quarter. Adjusted net income (net income adjusted for amortization and stock-based compensation, as further adjusted for the related income tax impact) for the third quarter of 2009 was $2.5 million compared to $3.6 million for the comparable prior year quarter. The third quarter of 2009 includes a prior period adjustment which reduced income before taxes by $967,000 and reduced adjusted net income by $587,000. Net loss per basic share for the third quarter of 2009 was ($0.03) compared to net income per basic share of $0.02 for the comparable prior year quarter. Adjusted net income per share (adjusted net income divided by adjusted weighted average diluted shares outstanding) for the third quarter of 2009 was $0.06 compared to $0.08 for the comparable prior year quarter.

As of September 30, 2009, TechTarget had $78.6 million of cash, cash equivalents and short and long-term investments. Outstanding bank debt was $750,000 as of September 30, 2009. Our net cash, as defined as cash, cash equivalents and investments less bank debtincreased by $11.3 million compared to December 31, 2008.

TechTarget