Accenture Revenues Grow by 12% to $4.2Bn for 1Q 2006

Accenture has reported USD 4.17 billion of net revenue for 1Q 2006, a 12 percent increase over the net revenue for 1Q 2005. The Consulting business unit accounted for 62 percent of the net revenue, totaling around USD 2.58 billion, whereas net revenue from the outsourcing business unit was USD 1.59 billion, 38 percent of the total quarterly figure.

The operating income for the quarter increased by 20 percent to USD 513 million, around 12.3 percent of the net revenue, against USD 427 million for the same period last year. New bookings totaled USD 5.54 billion, the highest quarterly bookings in seven quarters with the Consulting and Outsourcing units both contributing almost equally.

The selling, general and administrative (SG&A) costs for the quarter were USD 802 million, around 19.2 percent of the net revenue, compared with USD 750 million, around 20.1 percent of the net revenue for 1Q 2005. The company’s effective tax rate for the period was 37.4 percent.

For the three months ended November 30, 2005, the operating cash flow was USD 368 million, whereas free cash flow, defined as the operating cash flow net of property and equipment additions, was USD 290 million. The total cash balance of Accenture, for the period, was USD 1.69 billion, compared with USD 2.27 billion, for the same period last year. The decrease in the cash balance has been attributed to its share repurchases and payment of its cash dividend in the first quarter.

The Communication & High Tech operating group generated a net revenue of USD 1.05 billion for the quarter, a year-on-year rise of 8 percent. Financial Services contributed around USD 855 million, an increase of 6 percent. The other groups, namely, government, products and resources, collectively grossed around USD 2.27 billion.



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