View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
October 2, 2009

Accenture results show decline in revenue, profit

Incurs restructuring charge of $253m during the quarter

By CBR Staff Writer

Technology outsourcing and consulting firm Accenture has posted net revenue of $5.15 billion in the fourth quarter of fiscal 2009, down 14% in US dollars and 7% in local currency compared to the same period last year.

Consulting net revenue slipped by 19% to $2.19 billion while Outsourcing net revenue dropped by 7% in US dollars, but increased by 1% in local currency to $2.23 billion, compared to the same period last year.

Unfavourable foreign-exchange rates pushed profits for third quarter down on the year-ago period, and the Bermuda-based company reported a net income of $254.7m against $434.8m it produced 12 months earlier.

The company incurred a restructuring charge of $253m related to the realignment of its workforce, primarily at the senior-executive level, and to global real-estate consolidation.

The company posted an operating income of $420m during the quarter, a sharp decline compared to $785m to the corresponding period in 2008. Excluding the restructuring charge, operating income was $672m, or 13.1% of net revenues. Gross margin improved 60 basis points to 32.3% from 31.7% in the same period last year, primarily driven by improved outsourcing contract margins.

The selling, general and administrative (SG&A) expenses were $985m, operating cash flow was $1.05 billion and equipment additions expenses were $75m. The company’s effective tax rate for the fourth quarter was 27.6%, as against 31.8% in the same period last year.

Almost all major divisions of the company showed a drop in net revenue. The communications & high tech group’s net revenue was down 21% to $1,118m, financial services group, 19% to $1,017m, products group, 17% to $1,286m and resources group, 10% to $943m. The public service group, however, posted an increase of 6% to $776m.

Content from our partners
Rethinking cloud: challenging assumptions, learning lessons
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business

By geographic region, revenue from Americas decreased by 11% to $2,264m while Europe, Middle East and Africa (EMEA) was down by 20% to $2,274m. The revenue from Asia Pacific region, however, showed a marginal increase of 1% to $608m.

For the full year, net revenue was $21.58 billion, a decrease of 8% in US dollars and flat in local currency. Diluted earnings per share for the full year was $2.44, compared to $2.65 in fiscal 2008, and reflect a negative $0.24 impact from the restructuring charge. New bookings were $23.90 billion, operating income was $2.64 billion and operating margin was 12.3%.

In its outlook, Accenture expects net revenue to be in the range of $5.3 billion to $5.5 billion in the first quarter of 2009. For the full fiscal year 2010, it expects diluted EPS to be in the range of $2.64 to $2.72 and operating margin to be 13.4%. It is targeting new bookings in the range of $23 billion to $26 billion.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU