The Hackett Group Announces First Quarter Results

* Q1 Revenue of $39.5 Million and Pro Forma EPS of $0.03 in Line with Guidance

MIAMI--(Business Wire)--
The Hackett Group, Inc. (NASDAQ:HCKT), a global strategic advisory firm, today
announced its financial results for the first quarter, which ended April 3,
2009.

First quarter 2009 revenue was $39.5 million, a 10% decrease (a 7% decrease,
adjusting for constant currency) from the same period in 2008. Pro forma diluted
earnings per share were $0.03 as compared to $0.07 in the same period in 2008.
Pro forma information is provided to enhance the understanding of the Company`s
financial performance and is reconciled to the Company`s GAAP information in the
accompanying tables. GAAP diluted earnings per share were $0.02 as compared to
$0.09 in the same period in 2008. First quarter pro forma and GAAP diluted
earnings per share were unfavorably impacted by approximately $0.02 as a result
of the fluctuations in foreign currencies as compared to the same period in
2008.

At the end of the first quarter of 2009, the Company`s cash balances were $26.3
million, including marketable investments and restricted cash. During the first
quarter of 2009, the Company repurchased approximately 1.0 million shares of its
common stock at $2.08 per share, for a total cost of $2.1 million. As of the end
of the first quarter, approximately $4.8 million remained available under the
Company`s share repurchase program.

"As expected, the global economic environment impacted client decision-making as
they attempt to reduce and closely monitor all expenditures," stated Ted A.
Fernandez, Chairman & CEO of The Hackett Group, Inc. "We are continuing to
invest in our best practice research and global implementation capabilities to
ensure our offerings are responsive to our clients' needs regardless of the
economic conditions that they face."

Based on the current economic outlook, the Company estimates total revenue for
the second quarter of 2009 to be in the range of $34.0 million to $36.0 million
and estimates pro forma diluted earnings per share to be in the range of $0.00
to $0.03.

Other Highlights

19th Annual Best Practices Conference Announced - Hackett announced plans to
hold its 19th Annual Best Practices Conference, at the InterContinental Hotel in
Atlanta on May 13-14, 2009. This year`s Hackett conference, entitled "Business
Disrupted: How World-Class Companies Mitigate Recession Risk and Create
Competitive Advantage," will bring together speakers from more than a dozen of
the world`s most successful companies, including Alcoa, Caterpillar, Coca-Cola
Enterprises, Renault, and Unisys. The conference will look at how the world`s
most successful companies are reducing cost, managing working capital, and
creating competitive advantage during these challenging economic times.

Shared Services & Outsourcing Network Alliance - Hackett announced a strategic
alliance with the Shared Services & Outsourcing Network (SSON), a global
community of shared services and outsourcing practitioners, providers and
advisors. As part of the alliance, the two organizations launched a dedicated
service center benchmark study designed to assist executives in objectively
assessing how well their global business service centers are performing.

Ad Hoc Spending Study - Hackett launched a new open performance study designed
to help companies more effectively control spending on ad hoc project-based
purchases in IT-Telecom, HR, Sales & Marketing, Finance & Corporate Services,
and Capital Equipment & Services. The study is designed to help participants
better understand the scope and severity of such spending. Using a
performance-based and practices-based assessment methodology, the study aims to
help firms "size the prize" and choose the best practices to better manage this
unplanned demand.

Ontario Power Generation World-Class Award - Hackett announced that it
recognized Ontario Power Generation (OPG) as a world-class performer in finance
operations. The award recognized OPG`s status as an organization in
demonstrating top quartile efficiency and effectiveness in finance operations,
based on metrics captured during a finance functional benchmark. The company`s
results were compared with results from more than 200 recent Hackett Benchmarks
performed with Global 1000 companies, state and federal government
organizations, and academic institutions.

SAP Qualification for EzCPG - The SAP division of The Hackett Group, Inc.,
announced that its EzCPG has been named as a qualified SAP Business All-in-One
partner solution. EzCPG enables consumer products enterprises to meet their
fundamental business and IT challenges. Built on the world`s leading enterprise
applications from SAP AG with best business practices built-in, EzCPG has been
predefined to address the needs of small and midsize consumer products
companies.

At 5:00 P.M. ET on Monday, May 11, 2009 the senior management of The Hackett
Group, Inc. (NASDAQ:HCKT) will host a conference call to discuss first quarter
earnings results for the period ending April 3, 2009.

The number for the conference call is (800) 857-9601, [Passcode: First Quarter,
Leader: Ted A. Fernandez]. For International callers, please dial (210)
234-8000.

Please dial in at least 5-10 minutes prior to start time. If you are unable to
participate on the conference call, a rebroadcast will be available beginning at
8:00 P.M. ET on Monday, May 11, 2009 and will run through 5:00 P.M. ET on
Monday, May 25, 2009. To access the rebroadcast, please dial (800) 568-9796. For
International callers, please dial (203) 369-3292.

In addition, The Hackett Group will also be webcasting this conference call live
through the StreetEvents.com service. To participate, simply visit
http://www.thehackettgroup.com approximately 10 minutes prior to the start of
the call and click on the conference call link provided. An online replay of the
call will be available after 8:00 P.M. ET on Monday, May 11, 2009 and will run
through 5:00 P.M. ET on Monday, May 25, 2009. To access the call, visit
http://www.thehackettgroup.com or http://www.streetevents.com.

About The Hackett Group, Inc.

The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory firm, is a
leader in best practice advisory, benchmarking, and transformation consulting
services, including shared services, offshoring and outsourcing advice.
Utilizing best practices and implementation insights from more than 4,000
benchmarking engagements, executives use The Hackett Group's empirically-based
approach to quickly define and implement initiatives to enable world-class
performance. Through its REL brand, The Hackett Group offers working capital
solutions focused on delivering significant cash flow improvements. Through its
Hackett Technology Solutions group, The Hackett Group offers business
application consulting services that help maximize returns on IT investments.
The Hackett Group has worked with 2,700 major corporations and government
agencies, including 97% of the Dow Jones Industrials, 73% of the Fortune 100,
73% of the DAX 30 and 50% of the FTSE 100.

Founded in 1991, The Hackett Group was acquired by Answerthink, Inc. in 1997.
Answerthink was renamed The Hackett Group, Inc. in 2008. The Hackett Group has
global offices in the United States, Europe and Asia/Pacific.

More information on The Hackett Group is available: by phone at (770) 225-7300;
by e-mail at info@thehackettgroup.com; or on the Web at www.thehackettgroup.com.

Book of Numbers is a trademark of The Hackett Group.

This press release contains "forward-looking statements'' within the meaning of
the Private Securities Litigation Reform Act of 1995 and involve known and
unknown risks, uncertainties and other factors that may cause The Hackett
Group's actual results, performance or achievements to be materially different
from the results, performance or achievements expressed or implied by the
forward-looking statements. Factors that impact such forward-looking statements
include, among others, the ability of our products, services, or practices
mentioned in this release to deliver the desired effect, our ability to
effectively integrate acquisitions into our operations, our ability to retain
existing business, our ability to attract additional business, our ability to
effectively market and sell ourproduct offerings and other services, the timing
of projects and the potential for contract cancellations by our customers,
changes in expectations regarding the information technology industry, our
ability to attract and retain skilled employees, possible changes in collections
of accounts receivable, risks of competition, price and margin trends, foreign
currency fluctuations, changes in general economic conditions and interest rates
as well as other risks detailed in our Company's Annual Report on Form 10-K for
the most recent fiscal yearfiled with the Securities and Exchange Commission. We
undertake no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or otherwise,
except as required by law.

The Hackett Group, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Quarter Ended
April 3, 2009 March 28, 2008
Revenue:
Revenue $ 35,990 $ 39,268
before
reimburseme
nts
Reimburseme 3,526 4,570
nts
Total 39,516 43,838
revenue

Costs and
expenses:
Cost of
service:
Personnel 22,274 22,963
costs
before
reimbursabl
e expenses
(includes
$560 and
$397 of
stock
compensatio
n expense
in the
quarters
ended April
3, 2009 and
March 28,
2008,
respectivel
y)
Reimbursabl 3,526 4,570
e expenses
Total cost 25,800 27,533
of service

Selling, 12,839 12,582
general and
administrat
ive costs
(includes
$106 and
$548 of
stock
compensatio
n expense
in the
quarters
ended April
3, 2009 and
March 28,
2008,
respectivel
y)
Total costs 38,639 40,115
and
operating
expenses
Income from 877 3,723
operations
Other
income:
Interest 25 167
income
Income 902 3,890
before
income
taxes
Income tax 63 107
expense
Net income $ 839 $ 3,783

Basic net
income per
common
share:
Net income $ 0.02 $ 0.09
per common
share
Weighted 38,443 42,755
average
common
shares
outstanding

Diluted net
income per
common
share:
Net income $ 0.02 $ 0.09
per common
share
Weighted 38,703 43,353
average
common and
common
equivalent
shares
outstanding

Pro forma
data (1):
Income $ 902 $ 3,890
before
income
taxes
Stock 666 945
compensatio
n expense
Amortizatio 160 197
n of
intangible
assets
Pro forma 1,728 5,032
income
before
income
taxes
Pro forma 691 2,013
income tax
expense
Pro forma $ 1,037 $ 3,019
net income

Pro forma $ 0.03 $ 0.07
basic net
income per
common
share
Weighted 38,443 42,755
average
common
shares
outstanding

Pro forma $ 0.03 $ 0.07
diluted net
income per
common
share
Weighted 38,703 43,353
average
common and
common
equivalent
shares
outstanding

(1) The Company provides pro forma earnings results (which exclude amortization of
intangible assets, stock compensation expense, and include a normalized tax rate)
as a complement to results provided in accordance with Generally Accepted
Accounting Principles (GAAP). These non-GAAP results are provided to enhance the
overall users' understanding of the Company's current financial performance and
its prospects for the future. The Company believes the non-GAAP results provide
useful information to both management and investors by excluding certain expenses
that it believes are not indicative of its core operating results. The non-GAAP
measures are included to provide investors and management with an alternative
method for assessing operating results in a manner that is focused on the
performance of ongoing operations and to provide a more consistent basis for
comparison between quarters. Further, these non-GAAP results are one of the
primary indicators management uses for planning and forecasting in future periods.
In addition, since the Company has historically reported non-GAAP results to the
investment community, it believes the continued inclusion of non-GAAP results
provides consistency in its financial reporting. The presentation of this
additional information should not be considered in isolation or as a substitute
for results prepared in accordance with GAAP.

The Hackett Group, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

April 3, 2009 January 2, 2009
ASSETS
Current assets:
Cash and cash equivalents $ 24,405 $ 32,060
Marketable investments 1,262 1,727
Accounts receivable and 21,363 25,481
unbilled revenue, net
Prepaid expenses and other 3,383 3,021
current assets
Total current assets 50,413 62,289

Restricted cash 600 600
Property and equipment, net 6,174 5,767
Other assets 1,225 1,392
Goodwill, net 63,591 63,616
Total assets $ 122,003 $ 133,664

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,241 $ 3,711
Accrued expenses and other 23,824 34,277
liabilities
Total current liabilities 27,065 37,988
Accrued expenses and other liabilities, non-current 1,488 1,759
Total liabilities 28,553 39,747

Shareholders' equity 93,450 93,917
Total liabilities and $ 122,003 $ 133,664
shareholders' equity

The Hackett Group, Inc.
Supplemental Financial Data
(unaudited)

Quarter Ended
April 3, 2009 January 2, 2009 March 28, 2008
Revenue Breakdown by Group:
(in thousands)

The Hackett Group:
Benchmarking and Business Transformation (2) $ 23,784 $ 30,094 $ 25,969
Executive Advisory Programs (3) 3,549 3,693 4,012
Total The Hackett Group 27,333 33,787 29,981

Hackett Technology Solutions (4) 12,183 14,968 13,857
Total Revenue $ 39,516 $ 48,755 $ 43,838

Revenue Concentration:
(% of total revenue)

Top customer 8 % 6 % 7 %
Top 5 customers 21 % 21 % 20 %
Top 10 customers 32 % 30 % 29 %

Key Metrics and Other Financial Data:

The Hackett Group:
The Hackett Group annualized revenue per professional (in thousands) $ 357 $ 409 $ 415

Technology Solutions:
Technology Solutions consultant utilization rate 61 % 64 % 66 %
Technology Solutions gross billing rate per hour $ 156 $ 168 $ 160

Total Company:
Consultant headcount 532 547 536
Total headcount 723 724 723
Days sales outstanding (DSO) 50 51 66
Cash (used in) provided by operating activities (in thousands) $ (5,234 ) $ 11,361 $ 4,733
Depreciation (in thousands) $ 536 $ 512 $ 510
Amortization (in thousands) $ 160 $ 164 $ 197

Share Repurchase Program:
Shares purchased in the quarter (in thousands) 1,018 938 1,783
Cost of shares repurchased in the quarter (in thousands) $ 2,117 $ 2,889 $ 6,793
Average price per share of shares purchased in the quarter $ 2.08 $ 3.08 $ 3.81
Remaining authorization (in thousands) $ 4,841 $ 1,959 $ 4,266

(2) Comparison of a client's demand drivers, costs and practices to a peer group in order to empirically identify and define an organization's ability to improve performance at a process level and to identify and compare
business practices utilized by world-class performers. Additionally, strategic consulting support that utilizes Hackett best practice implementation content and tools to enable clients to accelerate transformation to
world-class performance.

(3) Annual or multi-year contracts that provide clients with on-demand access to world-class performance metrics, best practice repository, best practice research forums and conferences, and advice.

(4) Best Practice Implementation of ERP Software, which is primarily Oracle and SAP, and business performance management solutions, which is primarily Hyperion.

The Hackett Group, Inc.
Robert A. Ramirez, CFO, 305-375-8005
rramirez@thehackettgroup.com

Copyright Business Wire 2009