| BearingPoint Inc. |
1676 International Dr.
McLean, Va. 22102
Year founded: 1997
Industry: Information Technology
Revenue: $3.14 Billion
Net Income/Loss: $41.31 Million
Earnings per share: $0.22
Stockholder equity: $1.19 Billion
Auditor: PricewaterhouseCoopers LLP
Assets: $2.05 Billion
Market capitalization: $2.04 Billion
52-week high: 11.3 1/20/2004
52-week low: 5.9 4/14/2003
Chairman and CEO: Randolph C. Blazer
COO: Michael J. Donahue
Local employees: 2412
Description: BearingPoint, formerly known as KPMG Consulting, consults on management and technology for governments and companies in the United States and abroad.
Developments: Last year was rough for BearingPoint. The performance of consulting firms typically mirrors the state of the economy, and the lingering downturn in corporate tech spending, especially for high-priced services, has hurt the bottom line. BearingPoint is also dealing with a series of accounting surprises that have disappointed investors. In August the company restated earnings for three earlier quarters and eventually cut its profit during the period by $12.9 million. The company overestimated the value of certain consulting practices it had acquired in Europe. The European business, especially BearingPoint's large practice in Germany, has been sluggish since the technology bubble burst and has taken longer to recover than executives expected. In February the company said it expects to take another charge of $120 million. In September the company's independent auditor, PricewaterhouseCoopers, found "material weaknesses" in BearingPoint's accounting controls, particularly those governing business in Germany. The company attributed the inadequate controls to the difficulty of integrating the consulting practices it had acquired abroad. Last month, BearingPoint opened a center in India devoted to software development and technical support. Some analysts said the company's move was a smart, if belated, decision because it would allow BearingPoint to offer some services more cheaply. The ability to compete on price has become an important factor in the consulting market as companies strive to cut technology spending. And the high number of English-speaking engineers in India drives down prices for relatively simple technical tasks.
Chairman, President and CEO: Randolph C. Blazer
Total Cash: $1,000,000.00
Total Compensation: $3,884,684.00
© 2004 The Washington Post Company