IT services provider BearingPoint expects to post a steep net loss and slight revenue drop in the quarter ending...
31 December 2003, compared with the same quarter in 2002.
Preliminary results indicate a net loss of about $117m, compared with net income of $14.5m last year.
The forecast net loss includes a variety of one-time charges, such as a $2m lease and facilities charge and an expected goodwill impairment charge of $120m.
Earlier this month, BearingPoint announced its intention to change its financial year structure to have it end on 31 December instead of 30 June.
The company refrained from identifying the quarter ending on 31 December 2003 because it is changing the financial year structure. Under the old structure, the quarter would have been its second quarter. As part of the transition, it will be considered the final quarter of a six-month financial year.
Excluding one-time charges, the company's estimated net income is $11m.
Revenue is expected to come in at $792m, a 2% drop compared with the quarter ended 31 December 2002, but exceeding the company's previously stated guidance of $730m to $760m.
BearingPoint expected to release a final earnings report for the six-month period ending 31 December 2003 on or around 16 April 2004.
In August 2003, BearingPoint announced layoffs and a significant earnings restatement when it issued its fourth-quarter financial report, in which it also missed expectations.
At the time, the company adjusted its accounting and erased from the books almost 25% of the net income it had reported in the finacial year's first three quarters, from $44m to $33.2m.
The company has also announced layoffs of between 250 and 275 staffers, from a total of about 16,000.
Juan Carlos Perez writes for IDG News Service