Accenture Reports Strong First-Quarter Fiscal 2007 Financial Results, With Record Quarterly Revenues and Double-Digit EPS Growth.-- Revenues increase 14%, to $4.75 billion; EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. up 28% and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. up 19% -- -- Company increases EPS outlook for fiscal 2007 to a range of $1.80 to $1.85 -- NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Accenture (NYSE NYSE See: New York Stock Exchange : ACN ACN Accenture (stock symbol) ACN Accenture ACN Australian Company Number ACN Automatic Collision Notification (US DOT) ACN Acetonitrile ACN Anglican Communion Network ) reported strong financial results for the first quarter of fiscal 2007, ended Nov. 30, with net revenues of $4.75 billion, an increase of 14 percent in U.S. dollars over the same period last year and above the high end of the company's previously stated expectations. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.46, an increase of 28 percent over the first quarter of fiscal 2006. The company achieved the highest quarterly net revenues in its history, driven by record net revenues across all three geographic regions and all five operating groups, with exceptional top-line performance from its Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , Products and Resources operating groups. Consulting and outsourcing net revenues were also the highest in any quarter, with double-digit increases in both areas. New bookings were $5.5 billion, with a quarterly record in consulting bookings of $3 billion. In addition, Accenture grew operating income by 19 percent and expanded its operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: by 50 basis points, to 12.8 percent. The company also maintained its strong balance sheet, with $2.84 billion in cash and fixed-income securities Fixed-income securities Investments that have specific interest rates, such as bonds. classified as investments on its balance sheet at Nov. 30, 2006. William D. Green, Accenture's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "We had a tremendous first quarter, with our outstanding top- and bottom-line performance demonstrating continued success in executing our strategy. We exceeded our overall revenue expectations, achieving solid growth across nearly every dimension of our business. With $5.5 billion in new bookings, we are seeing sustained demand for our services, particularly in consulting. Our success gives us confidence for the periods ahead. We paid a cash dividend in the first quarter and returned cash to shareholders through further share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. . We remain focused on differentiating Accenture in the marketplace and delivering value for both our clients and shareholders." Financial Review Revenues before reimbursements ("net revenues") for the first quarter of fiscal 2007 were $4.75 billion, compared with $4.17 billion for the first quarter of fiscal 2006, an increase of 14 percent in U.S. dollars and 11 percent in local currency. * Consulting net revenues were $2.91 billion, an increase of 13 percent in U.S. dollars and 10 percent in local currency over the first quarter last year. * Outsourcing net revenues were $1.84 billion, an increase of 16 percent in U.S. dollars and 13 percent in local currency over the same period last year. GAAP diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS for the first quarter of fiscal 2007 increased 28 percent, to $0.46, compared with $0.36 for the first quarter last year. GAAP operating income for the first quarter of fiscal 2007 was $610 million, or 12.8 percent of net revenues, compared with $513 million, or 12.3 percent of net revenues, for the first quarter last year. This represents a 50 basis-point expansion in operating margin. Gross margin (gross profit as a percentage of net revenues) for the first quarter of fiscal 2007 was 30.1 percent, compared with 31.7 percent for the first quarter of fiscal 2006. Selling, general and administrative expenses in the first quarter of fiscal 2007 were $817 million, or 17.2 percent of net revenues, compared with $802 million, or 19.2 percent of net revenues, in the first quarter last year. The company's effective tax rate for the first quarter of fiscal 2007 was 36.7 percent. GAAP income before minority interest was $406 million in the first quarter of fiscal 2007, compared with $328 million in the same period of fiscal 2006. For the three months ended Nov. 30, 2006, operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. was $166 million, and property and equipment additions were $67 million. Free cash flow, defined as operating cash flow net of property and equipment additions, for the first quarter of 2007 was $99 million. Accenture's total cash balance at Nov. 30, 2006 was $2.44 billion, compared with $3.07 billion at Aug. 31, 2006. Cash combined with $407 million of fixed-income securities classified as investments on the company's balance sheet was $2.84 billion at Nov. 30, 2006, compared with $3.53 billion at Aug. 31, 2006. Total debt at Nov. 30, 2006 was $32 million. New Bookings New bookings for the first quarter of fiscal 2007 were $5.5 billion. * Consulting bookings were $3.0 billion, or 54 percent of new bookings, the highest quarterly consulting bookings in the company's history. * Outsourcing accounted for $2.5 billion, or 46 percent, of new bookings. Net Revenues by Operating Group Net revenues for Accenture's five operating groups were as follows: * Communications & High Tech: $1,096 million, compared with $1,048 million for the first quarter of fiscal 2006, an increase of 5 percent in U.S. dollars and 2 percent in local currency. * Financial Services: $1,067 million, compared with $855 million for the same period last year, an increase of 25 percent in U.S. dollars and 21 percent in local currency. * Government: $628 million, compared with $598 million for the year-ago period, an increase of 5 percent in U.S. dollars and 4 percent in local currency. * Products: $1,195 million, compared with $1,017 million for the year-ago period, an increase of 17 percent in U.S. dollars and 14 percent in local currency. * Resources: $763 million, compared with $650 million for the same period last year, an increase of 17 percent in U.S. dollars and 14 percent in local currency. Net Revenues by Geographic Region All three geographic regions achieved record-high quarterly revenues. Net revenues by geographic region were as follows: * Americas: $2.09 billion, compared with $1.86 billion for the first quarter of fiscal 2006, an increase of 13 percent in U.S. dollars and 12 percent in local currency. * Europe, Middle East and Africa (EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. ): $2.30 billion, compared with $2.01 billion for the first quarter of fiscal 2006, an increase of 15 percent in U.S. dollars and 9 percent in local currency. * Asia Pacific: $361 million, compared with $303 million for the year-ago period, an increase of 19 percent in both local currency and U.S. dollars. Share Repurchase Activity During the first quarter of fiscal 2007, Accenture repurchased or redeemed a total of 24.4 million shares for a total of $723.7 million. At Nov. 30, 2006, Accenture had $1.4 billion of share repurchase authority remaining. Dividend On Nov. 15, 2006, a cash dividend of $0.35 per share was paid on Accenture Ltd's Class A common shares to shareholders of record at the close of business on Oct. 13, 2006. On Nov. 15, 2006, a cash dividend of $0.35 per share was also paid on Accenture SCA (Single Connector Attachment) An 80-pin plug and socket used to connect peripherals. With a SCSI drive, it rolls three cables (power, data channel and ID configuration) into one connector for fast installation and removal. Class I common shares to shareholders of record at the close of business on Oct. 5, 2006. Business Outlook Second Quarter Fiscal 2007 Accenture expects net revenues for the second quarter of fiscal 2007 to be in the range of $4.6 billion to $4.8 billion. Fiscal Year 2007 For the full fiscal year 2007, Accenture continues to expect net revenue growth to be in the range of 9 percent to 12 percent in local currency. The Company has raised its outlook for GAAP diluted EPS by $.03 to a range of $1.80 to $1.85, up from its previously expected range of $1.77 to $1.82. The company continues to expect operating cash flow to be $1.95 billion to $2.15 billion; property and equipment additions to be $335 million; and free cash flow to be in the range of $1.6 billion to $1.8 billion. The expected annual effective tax rate remains in the range of 34 percent to 37 percent. Accenture continues to target new bookings for fiscal 2007 in the range of $22 billion to $24 billion. Conference Call and Webcast Details Accenture will host a conference call at 4:30 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. today to discuss its first-quarter 2007 financial results. To participate, please dial +1 (888) 428-4480 [+1 (612) 234-9960 outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. and Canada] approximately 15 minutes before the scheduled start of the call. The conference call will also be accessible live on the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Accenture Web site at www.accenture.com. A replay and podcast (iPOD broadCAST) An audio broadcast that has been converted to an MP3 file or other audio file format for playback in a digital music player or computer. The "pod" in podcast was coined from "iPod," the predominant portable, digital music player, and although podcasts are of the conference call will be available online at www.accenture.com for approximately two weeks beginning at 9:45 p.m. EST Wednesday, Dec. 20. The replay will also be available via telephone by dialing +1 (800) 475-6701 [+1 (320) 365-3844 outside the United States, Puerto Rico and Canada] and entering access code 852452 from 9:45 p.m. EST Wednesday, Dec. 20 through 11:59 p.m. EST Wednesday, Jan. 3, 2007. About Accenture Accenture is a global management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects , technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills, and technologies to help clients improve their performance. With more than 145,000 people in 49 countries, the company generated net revenues of US$16.65 billion for the fiscal year ended Aug. 31, 2006. Its home page is www.accenture.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This news release contains forward-looking statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our operations and results of operations, the accuracy of which is necessarily subject to risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions and the factors discussed under the "Risk Factors" heading in the Business section of our most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other documents filed with or furnished to the Securities and Exchange Commission. Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture's expectations. Non-GAAP Financial Information This press release includes certain non-GAAP financial information as defined by Securities and Exchange Commission Regulation G. Pursuant to the requirements of this regulation, reconciliations of this non-GAAP financial information to Accenture's financial statements as prepared under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP) are included in this press release. Accenture's management believes providing investors with this information gives additional insights into Accenture's results of operations. While Accenture's management believes that these non-GAAP financial measures are useful in evaluating Accenture's operations, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP. 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