November 9, 2010
Miami, FL - November 9, 2010 - The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory and operations improvement consulting firm, today announced its financial results for the third quarter, which ended October 1, 2010.
Third quarter 2010 revenue was $52.3 million, a 54% increase from the same period in 2009. Pro forma diluted earnings per share were $0.08 for the third quarter of 2010, as compared to $0.03 for the same period in 2009. Pro forma information is provided to enhance the understanding of the Company's financial performance and is reconciled to the Company's GAAP information in the accompanying tables. GAAP diluted earnings per share were $0.10 for the third quarter of 2010, as compared to $0.02 for the same period in 2009.
At the end of the third quarter of 2010, the Company's cash balances were $24.9 million. During the quarter ended October 1, 2010, the Company repurchased 482 thousand shares of its common stock at an average cost of $3.22 per share, for a total cost of approximately $1.6 million. The Company's current remaining authorization is approximately $6.9 million.
"Demand from our US-based clients contributed to our strong performance this quarter," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group. "Although the volatile economic recovery will continue to create some market uncertainty, we believe our offerings are well-aligned with the performance improvements companies will continue to address."
Based on the current economic outlook, the Company estimates total revenue for the fourth quarter of 2010 to be in the range of $46.5 million to $48.5 million, and estimates pro forma diluted earnings per share to be in the range of $0.05 to $0.07. At the midpoint of this guidance, quarterly revenues will be up 37 percent (29 percent organically) on a year-over-year basis.
Hewlett-Packard ("HP") Receives World-Class Award for HR - The Hackett Group recognized HP as a world-class performer in Human Resources. The award was based on the results of an in-depth HR benchmark performed by The Hackett Group, and recognizes HP's status as an organization demonstrating top quartile efficiency and effectiveness in HR operations. The company's performance was measured across more than a hundred HR metrics and compared with results from more than 200 recent benchmarks performed with Global 1000 companies, state and federal government organizations, and academic institutions. HP currently has more than 300,000 employees and conducts business in over 170 countries.
Eastman Chemical Receives World-Class Award for Finance - The Hackett Group recognized Eastman Chemical Company as a world-class performer in finance. The award was based on the results of an in-depth benchmark performed by The Hackett Group in early 2010. It recognizes Eastman's status as an organization demonstrating top quartile efficiency and effectiveness in corporate finance operations. Eastman, headquartered in Kingsport, Tennessee, is a chemicals, fibers, and plastics company with 2009 sales of $5.0 billion.
Answerthink Joins SAP Fast-Start Program - The Hackett Group's Answerthink division announced that it has joined the SAP Business All-in-One fast-start program. The program provides midsize companies with tools and methodologies to improve software acquisition and shorten implementation times. Through Answerthink's participation in the Fast-Start program, growing pharmaceutical companies can now reap the benefits of Answerthink's EzLifeScience™ solutions, which are qualified SAP Business All-in-One partner solutions, in a pre-packaged fixed scope fashion.
At 5:00 P.M. ET on Tuesday, November 9, 2010 the senior management of The Hackett Group will host a conference call to discuss third quarter earnings results for the period ending October 1, 2010.
The number for the conference call is (800) 857-9601, [Passcode: Third Quarter, Leader: Ted A. Fernandez]. For International callers, please dial (210) 234-8000.
Please dial in at least 5-10 minutes prior to start time. If you are unable to participate on the conference call, a rebroadcast will be available beginning at 8:00 P.M. ET on Tuesday, November 9, 2010 and will run through 5:00 P.M. ET on Tuesday, November 23, 2010. To access the rebroadcast, please dial (866) 462-8978. For International callers, please dial (203) 369-1364.
In addition, The Hackett Group will also be webcasting this conference call live through the StreetEvents.com service. To participate, simply visit http://www.thehackettgroup.com approximately 10 minutes prior to the start of the call and click on the conference call link provided. An online replay of the call will be available after 8:00 P.M. ET on Tuesday, November 9, 2010 and will run through 5:00 P.M. ET on Tuesday, November 23, 2010. To access the replay, visit http://www.thehackettgroup.com or http://www.streetevents.com.
The Hackett Group (NASDAQ: HCKT) is an intellectual property-based strategic consultancy and leading enterprise benchmarking and best practices implementation firm to global companies. Services include business transformation, enterprise performance management, working capital management, and global business services. The Hackett Group also provides dedicated expertise in business strategy, operations, finance, human capital management, strategic sourcing, procurement, and information technology, including its award-winning Oracle EPM and SAP practices.
The Hackett Group has completed more than 11,000 benchmarking studies with major corporations and government agencies, including 93% of the Dow Jones Industrials, 86% of the Fortune 100, 87% of the DAX 30 and 52% of the FTSE 100. These studies drive its Best Practice Intelligence Center™ which includes the firm's benchmarking metrics, best practices repository, and best practice configuration guides and process flows, which enable The Hackett Group's clients and partners to achieve world-class performance.
Copyright © 2010 The Hackett Group, Inc. All rights reserved. Answerthink, EzLifeScience as well as their respective logos are trademarks or registered trademarks of The Hackett Group, Inc.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause The Hackett Group's actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that impact such forward-looking statements include, among others, the ability of our products, services, or practices mentioned in this release to deliver the desired effect, our ability to effectively integrate acquisitions into our operations, our ability to retain existing business, our ability to attract additional business, our ability to effectively market and sell our product offerings and other services, the timing of projects and the potential for contract cancellations by our customers, changes in expectations regarding the information technology industry, our ability to attract and retain skilled employees, possible changes in collections of accounts receivable, risks of competition, price and margin trends, foreign currency fluctuations, changes in general economic conditions and interest rates as well as other risks detailed in our Company's Annual Report on Form 10-K for the most recent fiscal year filed with the Securities and Exchange Commission. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
More information on The Hackett Group is available: by phone at +1 770 225 7300; by e-mail at email@example.com.