Management and technology consulting for big companies has always seemed like a sweet deal. A consulting firm hires a lot of people with high IQs, usually from Harvard Business School, and then sends them to companies where management is not smart enough to solve their own problems.
BearingPoint (BE) is in this business. As they say "BearingPoint Gets Things Done. Differently" That is an understatement. It has treated its shareholders differently. That is for certain. The stock is down from $9 last September to well under $5. Let’s hope the company treats its customers better.
BearingPoint "said it could not file its results on time due to a significant delay in completing its financial statements for the year ended Dec. 31, 2006," according to Reuters. The is probably not a good sign for a consulting company full of very smart people. It did file results for its March 31 quarter last week. The Associated Press reports The company recorded a net loss of $61.7 million, or 29 cents per share for the quarter, compared with a loss of $72.7 million, or 34 cents per share, in the same period a year earlier. Revenue grew 4 percent to $866.3 million from $833.7 million.
As it turns out, that was below Wall St.’s expectations.
The company may want to move some of its egg heads to the accounting department.
Douglas A. McIntyre