March 7, 2006
MIAMI, FL, March 7, 2006 - Answerthink, Inc. (Nasdaq: ANSR), a strategic business advisory and technology consulting firm, today commented on the anticipated impact of the March 3, 2006 Chapter 11 business reorganization filing of one of its REL Consultancy Group customers, Dana Corp., and certain of Dana's U.S. subsidiaries under the U.S. Bankruptcy Code.
Answerthink reported that it has approximately $800,000 in accounts receivable and unbilled revenue due from Dana as of the date of the bankruptcy filing. In addition, March revenue backlog of approximately $400,000 related to ongoing Dana projects may not to be realized unless the bankruptcy court approves the payment of fees under the existing or a new contract.
Answerthink anticipates that it will continue efforts to participate in the ongoing turnaround effort at Dana, but can provide no assurances that it will be successful in these efforts. Depending on the outcome of these efforts, the impact from the Dana filing could reduce the Company's previously provided first quarter 2006 revenue guidance by as much as $400,000 and proforma earnings per share guidance by as much as one and one half cents.
Answerthink, Inc. (www.answerthink.com) is a leading business and technology consulting firm that enables companies to achieve world-class business performance. By leveraging the comprehensive database of The Hackett Group, Answerthink's business and technology solutions help clients significantly improve performance and maximize returns on technology investments. Answerthink's capabilities include benchmarking, business transformation, business applications, business intelligence, and offshore application development and support. Founded in 1997, Answerthink has offices throughout the United States and in Europe and India.
The Hackett Group (www.thehackettgroup.com), a strategic advisory firm and an Answerthink company, is a world leader in best practice research, benchmarking, business transformation and working capital management services that empirically define and enable world-class enterprise performance. The foundation of Hackett's services is a proprietary database of Hackett-Certified Practices, approaches that correlate with superior performance. Only The Hackett Group empirically defines world-class performance in sales, general and administrative (SG&A) and supply chain activities with analysis gained through 3,400 benchmark studies over 14 years at 2,000 of the world's leading companies. Hackett clients comprise 96 percent of the Dow Jones Industrials, 77 percent of the Fortune 100 and 92 percent of the Dow Jones Global Titans Index.