BearingPoint Inc., a McLean consulting firm, reported yesterday that profit doubled and revenue increased 36 percent during its fiscal second quarter as acquisitions and cost-cutting offset losses in its telecommunications and other technology businesses.
BearingPoint reported profit of $16.5 million in the quarter that ended Dec. 31, compared with $6.7 million in the quarter a year earlier. Revenue reached $808 million, up from $593 million. Excluding the acquisitions, revenue would have been flat, according to a company statement.
BearingPoint shares yesterday rose 42 cents, to $7.26. Last year, BearingPoint, then known as KPMG Consulting, acquired the Austrian, German and Swiss consulting practices of German auditing firm KPMG DTG and several Andersen Business Consulting practices. That expanded the company's international customer base, which is now 22 percent European.
BearingPoint is still adjusting to its growth. This month it announced the layoff of 450 to 550 employees. The workforce reduction will require a $17 million to $23 million charge during the third quarter, the company said.
Weak market conditions also bedevil the company as customers remain cautious. During the quarter, BearingPoint reported that customers cancelled $55 million to $65 million in deals.
BearingPoint's high-technology unit reported a 25 percent drop in revenue during the quarter, to $37.8 million, compared with $50 million during the quarter in 2001. Its communications unit reported a drop in revenue to $90 million, from $132 million.
The bright spot remained the firm's largest unit, public services, which reported an increase in revenue, to $261 million from $236 million.