BearingPoint scores first quarterly net in 3 years

BearingPoint Inc., a management and technology consultant, said Monday it swung to its first quarterly profit in more than three years, as a gain in its public services consulting business offset dropping revenue from financial and commercial services clients.

McLean-based BearingPoint reported net income for the three months ended June 30 of $18.5 million, or 8 cents per share, compared with a loss of $64 million, or 30 cents per share, in last year's second quarter.

The latest quarter's profit beat the expectations of seven analysts surveyed by Thomson Financial, who had forecast a loss of 8 cents per share, on average.

Revenue rose about 1 percent to $886.7 million from $875.3 million , above analysts' consensus forecast of $848 million.

BearingPoint's profit margin improved in the latest quarter due to lower professional compensation expenses and higher revenue. The company also cut selling, general and administrative expenses by 19 percent, to $140.9 million.

Revenue from public services consulting _ BearingPoint's largest customer segment _ rose 6 percent to $381.2 million. That gain offset a nearly 21 percent drop in commercial services revenue, and a nearly 34 percent fall in revenue from financial services clients.

BearingPoint early this year retained the firm Greenhill & Co. to explore the company's strategic options, including a possible merger or sale. On Monday, BearingPoint said the review was continuing, adding that it "hopes that these discussions can be completed in the near future."

BearingPoint reported earnings after its shares rose 4 cents to close at $1.18. The stock added another 2 cents to $1.20 in after-hours trading.

After a string of disappointing financial news, BearingPoint's stock dropped as low as 62 cents per share on July 9, down from its 52-week high of $6.74 last August.