Hackett Group Inc. (HCKT, Financial) filed Quarterly Report for the period ended 2009-07-03.
The Hackett Group a global strategic advisory firm and an Answerthink company is a leader in best practice research and advisory programs benchmarking and transformation consulting services including shared services offshoring and outsourcing advice. Utilizing best practices and implementation insight from more than 4000 benchmarking studies executives use Hackett\'s empirically based approach to quickly define and prioritize initiatives and to leverage proven strategies that enable world-class performance. Hackett Group Inc. has a market cap of $117.9 million; its shares were traded at around $3.06 with a P/E ratio of 9.9 and P/S ratio of 0.6.
During the quarter and six months ended July 3, 2009 one customer accounted for 7% and 8%, respectively, of our total revenue. For the quarter and six months ended June 27, 2008, no customer accounted for greater than 5% of our total revenue.
Total cost of service as a percentage of revenue before reimbursable expenses increased to 59% and 58% for the quarter and six months ended July 3, 2009, respectively, from 52% for the quarter and six months ended June 27, 2008. The increase was primarily due to the decrease in revenue as previously discussed. Cost of service is also denominated in multiple currencies and is therefore affected by currency exchange rate fluctuations.
The Hackett Group revenue produced gross margins of 40% and 41% for the quarter and six months ended July 3, 2009, respectively, as compared to Hackett Technology Solutions which produced gross margins of 21% and 22% for the same periods, respectively. On a net revenue basis, The Hackett Group produced gross margins as a percentage of revenue of 43% and 45% for the quarter and six months ended July 3, 2009, respectively, as compared to Hackett Technology Solutions, which produced gross margins as a percentage of net revenue of 24% and 25% for the same periods, respectively.
Selling, General and Administrative. Selling, general and administrative costs decreased by 30% and 16% for the quarter and six months ended July 3, 2009, respectively, compared to the quarter and six months ended June 27, 2008. The decrease was primarily related to lower 2009 incentive compensation accruals, lower commission expense due to the decrease in revenue as previously discussed and various other cost reduction actions taken in 2009. Partially offsetting these cost reductions for the six months ended July 3, 2009 were foreign currency losses of $0.4 million, compared to foreign currency gains of $1.2 million for the six months ended June 27, 2008. Selling, general and administrative costs as a percentage of revenue were 31% and 32% for the quarter and six months ended July 3, 2009, respectively, as compared to 31% and 30% for the quarter and six months ended June 27, 2008, respectively.
Income Taxes. We recorded income taxes of $26 thousand and $89 thousand for the quarter and six months ended July 3, 2009, respectively, which reflected estimated annual tax rates of 14% and 8%, respectively, for certain federal and state taxes. For the quarter and six months ended June 27, 2008, we recorded income taxes of $23 thousand and $130 thousand, respectively, which reflected estimated annual tax rates of 1% and 2%, respectively, for certain federal and state taxes.
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The Hackett Group a global strategic advisory firm and an Answerthink company is a leader in best practice research and advisory programs benchmarking and transformation consulting services including shared services offshoring and outsourcing advice. Utilizing best practices and implementation insight from more than 4000 benchmarking studies executives use Hackett\'s empirically based approach to quickly define and prioritize initiatives and to leverage proven strategies that enable world-class performance. Hackett Group Inc. has a market cap of $117.9 million; its shares were traded at around $3.06 with a P/E ratio of 9.9 and P/S ratio of 0.6.
Highlight of Business Operations:
The Hackett Groups international revenue, which is primarily based on the country of the contracting entity, accounted for 34% and 33%, or 39% and 39% in constant currency, of The Hackett Groups total revenue in the quarter and six months ended July 3, 2009, respectively, as compared to 40% and 39% for the quarter and six months ended June 27, 2008, respectively.During the quarter and six months ended July 3, 2009 one customer accounted for 7% and 8%, respectively, of our total revenue. For the quarter and six months ended June 27, 2008, no customer accounted for greater than 5% of our total revenue.
Total cost of service as a percentage of revenue before reimbursable expenses increased to 59% and 58% for the quarter and six months ended July 3, 2009, respectively, from 52% for the quarter and six months ended June 27, 2008. The increase was primarily due to the decrease in revenue as previously discussed. Cost of service is also denominated in multiple currencies and is therefore affected by currency exchange rate fluctuations.
The Hackett Group revenue produced gross margins of 40% and 41% for the quarter and six months ended July 3, 2009, respectively, as compared to Hackett Technology Solutions which produced gross margins of 21% and 22% for the same periods, respectively. On a net revenue basis, The Hackett Group produced gross margins as a percentage of revenue of 43% and 45% for the quarter and six months ended July 3, 2009, respectively, as compared to Hackett Technology Solutions, which produced gross margins as a percentage of net revenue of 24% and 25% for the same periods, respectively.
Selling, General and Administrative. Selling, general and administrative costs decreased by 30% and 16% for the quarter and six months ended July 3, 2009, respectively, compared to the quarter and six months ended June 27, 2008. The decrease was primarily related to lower 2009 incentive compensation accruals, lower commission expense due to the decrease in revenue as previously discussed and various other cost reduction actions taken in 2009. Partially offsetting these cost reductions for the six months ended July 3, 2009 were foreign currency losses of $0.4 million, compared to foreign currency gains of $1.2 million for the six months ended June 27, 2008. Selling, general and administrative costs as a percentage of revenue were 31% and 32% for the quarter and six months ended July 3, 2009, respectively, as compared to 31% and 30% for the quarter and six months ended June 27, 2008, respectively.
Income Taxes. We recorded income taxes of $26 thousand and $89 thousand for the quarter and six months ended July 3, 2009, respectively, which reflected estimated annual tax rates of 14% and 8%, respectively, for certain federal and state taxes. For the quarter and six months ended June 27, 2008, we recorded income taxes of $23 thousand and $130 thousand, respectively, which reflected estimated annual tax rates of 1% and 2%, respectively, for certain federal and state taxes.
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