Diamond Consultants grow in FY08
Date: 14-05-2008
Source: Diamond Consultants
Diamond Management & Technology Consultants, Inc., the global management and technology consulting firm, has reported the results for its fourth quarter and fiscal year 2008 (ended March 31, 2008). In fiscal year 2008, net revenue was $182.3 million, up 8% compared to $168.7 million reported in the prior year.
Income from continuing operations after income taxes was $10.2 million, or $0.33 per diluted share, in fiscal year 2008. This compares with income from continuing operations after income taxes of $7.2 million, or $0.21 per diluted share in FY07.
"Fiscal year 2008 was a year of two parts. In the first half of the year, we generated 14% growth, in line with our target growth rate. As the economy slowed, our business slowed and we finished the year with 8% year-over-year growth," said Adam Gutstein, President and CEO of Diamond. "Our core clients, market leaders in their respective industries, continue to use our services despite and perhaps because of, the difficult environment. We're pleased our top 10 clients from the March quarter continue with us in the current quarter. We have an impressive track record of helping companies create value, whether in terms of growth or cost containment, and in delivering projects on time and on budget,".
Fourth Quarter 2008
Net revenue for the quarter ended March 31, 2008 was $42.4 million, compared with $42.9 million for the same period in the prior fiscal year.
Income from continuing operations after income taxes was $0.6 million compared with $2.6 million reported in the same period last year.
During the quarter, Diamond received a cash payment of $7.0 million and recorded an additional gain from discontinued operations.
Business Metrics
Diamond served 63 clients during the fourth quarter, compared with 65 clients served in both the third quarter of fiscal year 2008 and the fourth quarter last year. It added 14 new clients, compared to 18 new clients in the third quarter and 19 clients in the year-ago period. The top five clients represented 39% of revenue during the fourth quarter of fiscal year 2008 compared to 41% in the third quarter and 37% in the year-ago period.
Diamond ended the quarter with 510 client-serving professionals, compared with 512 in the third quarter and 507 in the year-ago period. Chargeability was 60% in the fourth quarter of fiscal year 2008, compared with 65% in the prior quarter and 61% in the year-ago period. Annualized net revenue per professional was $332 thousand, compared with $363 thousand in the third quarter and $340 thousand in the year-ago period. Annualized voluntary attrition was 12% in the fourth quarter, compared with 13% in the fourth quarter last year.
Revenue by industry practice in the fourth quarter was: Financial Services: 32%; Insurance: 20%; Healthcare: 23%; Enterprise: 16%; Telecom: 6%; and Public Sector: 3%.
Business Outlook
"We have seen a deceleration in demand in recent weeks characterized by an increase in project deferrals, lengthening sales cycles, and some project cancellations. Given the current market environment, we are anticipating first quarter net revenue in the range of $36 to $38 million," said Gutstein.
Diamond expects first quarter net revenue in the range of $36 to $38 million, a pretax loss of $1 million to $3 million and GAAP EPS to be in the range of negative $0.03 to negative $0.08 per diluted share.
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