Hackett Group Inc. (HCKT, Financial) filed Quarterly Report for the period ended 2009-10-02.
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 4,000 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 $125.5 million; its shares were traded at around $3.26 with a P/E ratio of 15.5 and P/S ratio of 0.7.
The Hackett Group revenue decreased 32%, or 30% in constant currency, for the quarter ended October 2, 2009, as compared to the quarter ended September 26, 2008. The Hackett Group revenue decreased 23%, or 19% in constant currency, for the nine months ended October 2, 2009, as compared to the nine months ended September 26, 2008. The decrease in The Hackett Group revenue was primarily the result of delays in client decision-making and protracted sales cycles which have impacted our momentum in 2009.
The Hackett Groups international revenue, which is primarily based on the country of the contracting entity, accounted for 37% and 34%, or 38% and 37% in constant currency, of The Hackett Groups total revenue in the quarter and nine months ended October 2, 2009, respectively, as compared to 39% for both the quarter and nine months ended September 26, 2008, respectively.
The Hackett Group revenue produced gross margins of 39% and 41% for the quarter and nine months ended October 2, 2009, respectively, as compared to Hackett Technology Solutions which produced gross margins of 25% and 23% for the same periods, respectively. On a net revenue basis, The Hackett Group produced gross margins as a percentage of revenue of 42% and 44% for the quarter and nine months ended October 2, 2009, respectively, as compared to Hackett Technology Solutions, which produced gross margins as a percentage of net revenue of 29% and 26% for the same periods, respectively.
Selling, General and Administrative. Selling, general and administrative costs decreased by 36% and 23% for the quarter and nine months ended October 2, 2009, respectively, compared to the quarter and nine months ended September 26, 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 nine months ended October 2, 2009 were foreign currency losses of $0.3 million, compared to foreign currency gains of $0.9 million for the nine months ended September 26, 2008. Selling, general and administrative costs as a percentage of revenue were 31% and 32% for the quarter and nine months ended October 2, 2009, respectively, as compared to 32% and 31% for the quarter and nine months ended September 26, 2008, respectively.
Income Taxes. We recorded an income tax benefit of $20 thousand and an income tax expense of $69 thousand for the quarter and nine months ended October 2, 2009, respectively, which reflected an estimated annual tax rate benefit of 2.5% and an estimated annual tax rate expense of 3.7%, respectively, for certain federal and state taxes. For the quarter and nine months ended September 26, 2008, we recorded income taxes of $123 thousand and $253 thousand, respectively, which reflected estimated annual tax rates of 2.6% and 2.0%, respectively, for certain federal and state taxes.
Read the The complete Report
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 4,000 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 $125.5 million; its shares were traded at around $3.26 with a P/E ratio of 15.5 and P/S ratio of 0.7.
Highlight of Business Operations:
Total Hackett revenue decreased 33%, or 32% in constant currency, for the quarter ended October 2, 2009, as compared to the quarter ended September 26, 2008. Total Hackett revenue decreased 25%, or 22% in constant currency, for the nine months ended October 2, 2009, as compared to the nine months ended September 26, 2008.The Hackett Group revenue decreased 32%, or 30% in constant currency, for the quarter ended October 2, 2009, as compared to the quarter ended September 26, 2008. The Hackett Group revenue decreased 23%, or 19% in constant currency, for the nine months ended October 2, 2009, as compared to the nine months ended September 26, 2008. The decrease in The Hackett Group revenue was primarily the result of delays in client decision-making and protracted sales cycles which have impacted our momentum in 2009.
The Hackett Groups international revenue, which is primarily based on the country of the contracting entity, accounted for 37% and 34%, or 38% and 37% in constant currency, of The Hackett Groups total revenue in the quarter and nine months ended October 2, 2009, respectively, as compared to 39% for both the quarter and nine months ended September 26, 2008, respectively.
The Hackett Group revenue produced gross margins of 39% and 41% for the quarter and nine months ended October 2, 2009, respectively, as compared to Hackett Technology Solutions which produced gross margins of 25% and 23% for the same periods, respectively. On a net revenue basis, The Hackett Group produced gross margins as a percentage of revenue of 42% and 44% for the quarter and nine months ended October 2, 2009, respectively, as compared to Hackett Technology Solutions, which produced gross margins as a percentage of net revenue of 29% and 26% for the same periods, respectively.
Selling, General and Administrative. Selling, general and administrative costs decreased by 36% and 23% for the quarter and nine months ended October 2, 2009, respectively, compared to the quarter and nine months ended September 26, 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 nine months ended October 2, 2009 were foreign currency losses of $0.3 million, compared to foreign currency gains of $0.9 million for the nine months ended September 26, 2008. Selling, general and administrative costs as a percentage of revenue were 31% and 32% for the quarter and nine months ended October 2, 2009, respectively, as compared to 32% and 31% for the quarter and nine months ended September 26, 2008, respectively.
Income Taxes. We recorded an income tax benefit of $20 thousand and an income tax expense of $69 thousand for the quarter and nine months ended October 2, 2009, respectively, which reflected an estimated annual tax rate benefit of 2.5% and an estimated annual tax rate expense of 3.7%, respectively, for certain federal and state taxes. For the quarter and nine months ended September 26, 2008, we recorded income taxes of $123 thousand and $253 thousand, respectively, which reflected estimated annual tax rates of 2.6% and 2.0%, respectively, for certain federal and state taxes.
Read the The complete Report
