McLean, VA, April 25, 2006 – BearingPoint Inc. (NYSE: BE), a leading global management and technology consulting company, today provided a business update and revised its financial guidance for 2006.
The company reported its first quarter 2006 business metrics today, highlighted by strong bookings in BearingPoint’s Public Services segment, which was awarded a number of important contracts including implementation of payroll and personnel systems for the State of California and application services development for San Diego County.
BearingPoint’s first quarter performance metrics include:
* Bookings were approximately $800 million in the first quarter of the year, an approximate 15% increase from the year ago quarter;
* Voluntary total employee turnover was 24.0%, a 90 basis points improvement from the year ago quarter;
* Total workforce utilization was 67.7%, down from 70.2% in the first quarter 2005;
* Total chargeable hours billed by consultants to client engagements were approximately 5.3 million hours, a year-over-year increase of nearly 4% from the first quarter of 2005; and
* Billable headcount for the first quarter of 2006 stood at 15,400, a 3.6% increase from the first quarter of 2005 and in line with billable headcount for the fourth quarter of 2005.
"In a robust global business environment, our business units operated well in the first quarter. More importantly, we are continuing to demonstrate our ability to deliver complex and mission critical solutions to clients all across our industry segments," said Harry You, chief executive officer of BearingPoint.
Relative to its expectations for the year ending December 31, 2006, the company today affirmed its previous guidance for revenue expectations of between $3.5 and $3.7 billion, and net revenue of between $2.7 and $2.85 billion.
The company now expects GAAP operating income for the same period to be in the range of $150 to $200 million, compared with the previously forecasted range of $180 to $250 million.
The company has adjusted its expectations regarding GAAP operating income to account for, among other things, between $80 to $120 million of higher-than-expected costs associated with accelerating and expanding various finance, compliance and infrastructure initiatives, including:
* Additional costs for the company’s efforts to complete its 2005 financial statements and file its Form 10-K with the SEC;
* Incremental costs to increase staff and resources relating to the expansion of corporate compliance infrastructure, and the completion of the investigation by the BearingPoint audit committee; and
* Other corporate infrastructure costs, including up to $25 million of additional, non-cash lease and facilities restructuring charges.
Cash balances at the end of fiscal year 2006 are now estimated to be between $450 to $600 million, as compared with the previous forecast of $550 to $650 million. The forecast has been adjusted to reflect the use of cash in connection with the additional costs described, as well as payments in connection with the pending settlements of various civil actions and costs of our employee ownership program.
You concluded, "As we have stated, we remain focused on resolving our infrastructure and process issues with the goal of becoming current in our SEC filings by later this year. The actions we are taking now will enable us to move forward faster with a streamlined infrastructure and stronger systems to support our business strategy. We are pleased to see the strong performance in our core business affirming this strategy and our dedication to service with our clients."
About BearingPoint, Inc.
BearingPoint, Inc. (NYSE: BE) is one of the world's largest providers of management and technology consulting services to Global 2000 companies and government organizations in 60 countries worldwide. Based in McLean, Va., the firm has approximately 17,500 employees and major practice areas focusing on the Public Services, Financial Services and Commercial Services markets. For nearly 100 years, BearingPoint professionals have built a reputation for knowing what it takes to help clients achieve their goals, and working closely with them to get the job done. For more information, visit the Company's website at www.BearingPoint.com.