* Q1 adj EPS $0.04 vs est $0.27
* Revenue down 10 pct
* To eliminate 47 positions
* Shares down 30 pct
(Adds conference call details, updates stock activity)
March 18 CRA International Inc (CRAI.O) posted
a quarterly profit much below analysts' expectations, hurt by
lower client spending, and the business and legal consultancy
company said it would cut 47 positions, sending its shares down
as much as 30 percent.
"Clients have been reluctant to spend, thus lengthening the
time to close new engagements and this has impacted all areas
of our business," Chief Executive Paul Maleh said on a
Though revenue at European competition group was up
sequentially as well as year-over-year, the growth was not
enough to make up for the declines the company experienced
across a number of its larger practises, the CEO added.
For the quarter ended Feb. 19, net income was $266,000, or
2 cents a share, compared with $534,000, or 5 cents a share, in
the year-ago period.
Excluding items, the company earned 4 cents a share.
Revenue fell 10 percent to $58.8 million.
Analysts on average were expecting earnings 27 cents a
share, before items, on revenue of $66.9, according to Thomson
"We are in the process of closing our Houston office and
shifting certain consultants to other locations, restructuring
selected practice areas and better aligning staffing levels
with our revenue," Maleh said.
CRA expects a restructuring charge of between $4.9 million
and $5.5 million in the second quarter and sees about $9
million in savings annually, it said.
The company said its management consulting portfolio was
hampered by projects that ended during the fourth quarter and
were not immediately replaced in the first quarter.
"Due to the active lead flow in management consulting and
litigation ... we are anticipating higher corresponding revenue
in the quarters ahead," the CEO said.
Shares of the Boston, Massachusetts-based company were down
28 percent at $20.11 Thursday morning on Nasdaq. They touched a
low of $19.70 earlier in the session.
(Reporting by Abhinav Sharma in Bangalore; Editing by Ratul
Ray Chaudhuri, Unnikrishnan Nair)