BearingPoint Reports 1Q Loss of $39.2M
McLEAN, Va. (AP) _ BearingPoint Inc., the former KPMG Consulting, Thursday said it swung to a loss in its latest quarter, weighed down by charges to cover costs of streamlining the company.
In morning trading, shares of BearingPoint fell 80 cents, or 8.2 percent, to $8.95, on the New York Stock Exchange.
The McLean-based company posted a net loss of $39.2 million, or 20 cents a share, for the first quarter ended Sept. 30, in contrast to net income of $12.3 million, or 7 cents a share, a year earlier.
The latest quarter included pretax charges totaling $72.8 million to cover layoffs of 250 employees and the consolidation of office space.
Excluding the charges, earnings were 5 cents a share. Analysts were on average expecting earnings excluding items of 3 cents a share, according to a survey by Thomson First Call.
In late September, BearingPoint said it expected to lose 20 cents to 24 cents a share for the fiscal first quarter, including charges for the streamlining measures.
Revenue in the latest period edged up 1.4 percent to $743 million from $732.7 million.
The firm’s public services division generated revenue of $271.5 million, up 2.4 percent from a year earlier.
The communications and content unit saw revenue fall 34 percent to $63.3 million, while revenue at the consumer, industrial and technology business fell 23 percent to $107.4 million.
Financial-services revenue slipped 2.3 percent to $60.6 million. International revenue, however, jumped 43 percent to $239.2 million.