KPMG Consulting Wednesday reported a sharp drop in net income and in revenue for its fourth fiscal quarter of 2002, ended June 30, 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 US$404,000, less than $.01 per share, compared with net income of $22.45 million, or $0.14 per share, in the fourth fiscal quarter of 2001, the McLean, Virginia-based company said in a statement.
The IT services provider closed the quarter with revenue of $583.2 million, down from $722.9 million in 2001's fiscal fourth quarter and slightly short of the $584 million consensus expectation from financial analysts polled by Thomson Financial/First Call.
The company reported operating earnings of $24.1 million, or $0.15 per share, which excludes $23.7 million 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 fiscal year, KPMG Consulting had a net loss of $26.9 million, or a loss of $0.17 per share, compared with net income of $34.9 million, or a loss of $1.19 per share, in fiscal 2001. The company reported a per-share loss in fiscal 2001, despite posting net income, because of charges related to its process of going public, which happened in February 2001, a spokesman said.
Revenue for fiscal 2002 dropped to just under $2.37 billion from $2.85 billion in fiscal 2001.
KPMG Consulting announced the results on Wednesday morning. Its stock (KCIN) closed at $10.29 Wednesday, up 1.78 percent. The stock's highest point in the past 52 weeks has been $21.49.