BearingPoint Inc.

1676 International Dr.

Year founded: 1997

Industry: Information Technology

Revenue: n/a

Net Income/Loss: n/a

Earnings per share: n/a

Dividend: n/a

Stockholder equity: n/a

Auditor: PricewaterhouseCoopers LLP

Stock: BE

Assets: n/a

Market capitalization: $1.6 billion

52-week high: $10.92 (4/22/04)

52-week low: $7.26 (8/13/04)

Chairman : Roderick C. McGeary

CEO: Harry L. You

Employees: 16,557

Local employees: 3,139

Description: BearingPoint is a management and technology consulting firm that advises U.S. and international clients.

Developments: BearingPoint had an eventful year. Struggling to increase profit in the face of fierce competition and investor dissatisfaction, the company turned to Roderick C. McGeary to fill in for longtime chief executive Randolph C. Blazer. Blazer abruptly departed in November in what BearingPoint officials have described as a mutual agreement with the board of directors.

Last month, BearingPoint named Harry L. You, formerly finance chief at Oracle Corp. and consulting rival Accenture Ltd., to serve as its new chief executive. McGeary will remain as chairman. BearingPoint also hired Joseph Corbett as its chief financial officer, filling the shoes of Robert S. Falcone, who retired in late 2004.

The new managers faced a series of challenges. A grand jury in California continues to probe some of BearingPoint's federal contracts dating to 1998. Also, a former employee pleaded guilty in November to signing phony contracts for onetime client Peregrine Systems Inc. And BearingPoint faces shareholder lawsuits related to its dealings with the client, which also date to the 1990s.

Outside auditors continue to scour the company's books. The firm said early this year that it would miss deadlines to file its 2004 annual report because of efforts to test the accuracy of its computerized financial system. Staff members also were working to fix weaknesses in BearingPoint's financial controls. Company officials foreshadowed a likely earnings restatement covering the first three quarters in 2004, citing problems in its Europe/Middle East/Africa unit.

In December, the company successfully negotiated a new $350 million debt offering that gave BearingPoint more liquidity.BearingPoint also snagged two big contracts, a $229 million deal to modernize the Homeland Security Department's financial-reporting system and a deal worth as much as $225 million to assist with Iraq reconstruction efforts.

Last week, the company gave shareholders more bad news, announcing that the Securities and Exchange Commission was informally investigating its finances, that its financial statements as far back as mid-2002 may be incorrect and that a cash crunch could push it into insolvency. But BearingPoint followed at week's end with word that it had eased its cash crunch by raising $200 million by selling debt convertible into its stock.