On the back of the news, BearingPoint’s share price tumbled over 23% in early trading to an all-time low of $2.80. As recently as July, the company was valued at over $7.50 per share, but analysts’ concerns over the company’s cost levels have forced its shares into freefall.

Former Oracle CFO You has been in charge at BearingPoint since March 2005. He was brought in to replace former chief Randolph Blazer, who resigned after the discovery of significant accounting errors. It was initially thought that You had been appointed to oversee a sell-off because his former employment included a spell assisting Morgan Stanley with its IPO.

You’s main achievement while at BearingPoint has been getting the company’s financial reporting back on track. This has been a long and drawn-out process, but with its third-quarter results being released on time, BearingPoint said it has shed its late filer status once and for all.

He will be replaced by Ed Harbach, who joined BearingPoint as president and COO in January. Prior to this, Harbach worked at Accenture where he filled a variety of roles including CIO and managing partner of the Japanese operation.

In its third-quarter filing, BearingPoint revealed a net loss of $68.0m, compared to a loss of $29.6m in the same period the previous year, on revenue that grew 2.2% to $861.9m. The company’s quarterly total costs were up 6.6% at $729.3m, including other costs which increased 41.2% to $81.8m. BearingPoint said the sharp increase in other costs was largely the result of a rise in the number of non-billable employees, higher recruiting costs, and a software impairment charge incurred in the EMEA region.

BearingPoint’s public services operation grew sales by 8.7% to $362.9m, while revenue from the company’s EMEA business increased by 10.3% to $184.3m. However, financial services business slumped 31.6% to $66.4m, which BearingPoint said was due to the winding down of the business unit’s largest client engagement during 2007, the continuing effects of losses of senior staff in certain of our higher rate business sectors and early termination of some engagements by banking sector clients in response to recently reported losses related to asset write-downs.