The US Department of Defense alone accounts for 11 percent of BearingPoints

The us department of defense alone accounts for 11

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The U.S. Department of Defense alone accounts for 11 percent of BearingPoint’s sales. In all, around 30 percent of the firm’s business comes via U.S. govern-ment agencies.During the economic downturn of the early 2000s, BearingPoint incorporated a voluntary leave-of-absence program and a reduced workweek initia-tive, which helped prevent layoffs. In 2002, the firm reduced its workforce by 7 percent.Today, however, things don’t look so bleak: The company brought in an estimated 6,000 new employ-ees in 2007 after hiring 6,500 the previous year. The upswing in the economy and recent major contract awards—including the U.S. Navy’s strategic sourcing and financial improvement plan programs; Purdue University’s SAP contract; Fireman’s Fund; and San Key Numbers December 2006 December 2005 1-yr. change (%)Worldwide revenue ($M) 3,444 3,388 1.7Net income ($M) –213 –722 N/ANumber of employees 17,500* 17,500 0.0* 2005 number Sources: BearingPoint SEC filing; Hoover’s; WetFeet analysis
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23WETFEET INSIDER GUIDETHE FIRMSTHE INDUSTRYDiego County’s integrated property tax assessment system contract—helped fuel those additions. Increased contracts from the Department of Defense and other government big spenders have been a boon for BearingPoint. And yet, even flush with funds from a wartime government, the company posted another losing year in 2006, finishing with net losses of some $213 million. This is actually an improvement from 2004 and ’05, when BearingPoint dropped $546 million and $722 million, respectively. RECENT MILESTONES2007Agrees to settlement with Hawaiian Telecom in which BearingPoint pays the company $52 million and waives previously submitted invoices of about $30 million.Recognized by Fortune as one of the nation’s top 100 MBA employers.2006Share prices free-fall by nearly 9 percent on September 27 after a New York court finds BearingPoint in default of a debt issue for failing to provide timely reports.Signs a lease to open a new national hub office at 3 World Financial Center in Lower Manhattan. The new BearingPoint headquarters will provide workspace for 633 employees; in return, the company receives a $2.4 million job creation and retention grant.Announces losses of $113 million on contract to build new back-office systems for Hawaiian Telecom.2005Named to Fortune’s “America’s Most Admired Companies” list for the third straight year.Designates former Oracle CFO Harry You as CEO.2004Bolsters its financial services offering by opening an alternative investments and brokerage services practice. Opens offshore development center in Chennai, India.Opens second development center in China.INSIDER SCOOPSink or SwimNo one will spoon-feed you at BearingPoint. “If you want constant direction, you shouldn’t look to BearingPoint,” says one insider. People who thrive at this IT consultancy are able to pick up a project and run with it, with limited questions and even less feedback.
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