BearingPoint Inc. / BE

About BearingPoint Inc.

1676 International Dr., McLean, Va. 22102
www.bearingpoint.com | 703-747-3000 | Founded: 1997

Industry: Information Technology | Category: Public Companies

The company continued its struggle to issue timely financial reports after a slew of accounting problems that precipitated a Securities and Exchange Commission probe. BearingPoint told investors it would aim to file fiscal year 2006 audited numbers by June of this year. Corporate officials predicted 2006 revenue would grow by 5 percent but said that steep costs to complete its financial statements and other expenses would likely result in a pre-tax loss of between $144 million and $214 million.
The delays caused Standard & Poor's to withdraw its credit and debt rating, citing a lack of financial information. They also prompted a lawsuit from bondholders that BearingPoint ultimately settled by raising interest rates on its loans.
Chief executive Harry L. You tried to stanch employee turnover and filled out the firm's management ranks by recruiting former Accenture managing partner Ed Harbach as president and chief operating officer, Judy A. Ethell as chief financial officer, Russ Berland as chief compliance officer and Eric Goldfarb as chief information officer.
Despite its accounting setbacks, the company continued to win new business, including a contract to replace California's payroll and personnel system, a technology upgrade at the SEC and another to help manage a national health information network.

President and CEO: Ed Harbach

2006 Financial Data

Total employees: 17,700 | Local employees: 3,600