KPMG Consulting suffers fourth-quarter slump

KPMG Consulting has reported a sharp drop in net income and in revenue for its fourth financial quarter of 2002, ended 30 June,...

KPMG Consulting has reported a sharp drop in net income and in revenue for its fourth financial quarter of 2002, ended 30 June, due to slumping demand for IT services from clients in the technology and communications industries and to a variety of one-time charges.

Net income came in at $404,000 (£264,706), compared with net income of $22.45m in the same period last year, the company said in a statement.

The IT services provider closed the quarter with revenue of $583.2m, down from $722.9m for the same period last year and slightly short of the $584m consensus expectation from analysts polled by Thomson Financial/First Call.

The company reported operating earnings of $24.1m, which excludes $23.7m in charges related to one-time items and to an accounting change. The company thus met the earnings per share consensus estimate from the financial analysts, which excluded the charges.

For the full financial year, KPMG Consulting had a net loss of $26.9m, compared with net income of $34.9m in 2001.

The company reported a per-share loss in 2001, despite posting net income, because of charges related to its public offering in February 2001, a spokesman said.

Revenue for 2002 fell to just below $2.37bn from $2.85bn in 2001.

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