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Accenture revenues up 6 percent in solid third quarter

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New York: Accenture reported solid financial results today, in line market expectations and its own guidance for the third quarter of fiscal 2012 to 31 May.

Net revenues were $7.2 billion, an increase of 6 percent in U.S. dollars and 9 percent in local currency over the same period last year.

  • Revenues increase 6% in U.S. dollars and 9% in local currency, to $7.2 billion
  • EMEA revenues flat, Asia-Pacific up 18%
  • EPS up 11%, to $1.03
  • Operating income increases 12%, to $1.06 billion, with operating margin of 14.8%
  • New bookings are $7.3 billion, with consulting bookings of $4.05 billion and outsourcing bookings of $3.24 billion
  • Company continues to expect full-year revenue growth in range of 10% to 12% in local currency

Operating income was $1.06 billion, an increase of 12 percent over the same period last year, and operating margin was 14.8 percent, compared with 14.1 percent for the same period last year.
New bookings for the quarter were $7.29 billion, with consulting bookings of $4.05 billion and outsourcing bookings of $3.24 billion.

Pierre Nanterme, Accenture's chief executive officer, said, "We are pleased with our third-quarter performance. Our revenue growth in local currency was broad-based across all five operating groups and all three geographic regions, with particularly strong growth in outsourcing revenues.

"Quarterly new bookings of $7.3 billion took us to $23 billion for the first three quarters of the year, positioning us very well to achieve our annual outlook. Our balance sheet remains very strong, with a cash balance of $5.6 billion.

"While we continue to monitor the global economic environment, our highly diversified portfolio of business continues to position us well to drive profitable growth and deliver value to our clients and shareholders."

Financial Review

Revenues before reimbursements ("net revenues") for the third quarter of fiscal 2012 were $7.2 billion, compared with $6.7 billion for the third quarter of fiscal 2011, an increase of 6 percent in U.S. dollars and 9 percent in local currency.

  • Consulting net revenues for the quarter were $4.0 billion, consistent in U.S. dollars and an increase of 3 percent in local currency compared with the third quarter of fiscal 2011.
  • Outsourcing net revenues were $3.2 billion, an increase of 16 percent in U.S. dollars and 19 percent in local currency over the third quarter of fiscal 2011.

Operating income for the quarter was $1.06 billion, or 14.8 percent of net revenues, compared with $949 million, or 14.1 percent of net revenues, for the third quarter of fiscal 2011.

Net income for the quarter was $763 million, compared with $699 million for the third quarter last year, an increase of 9 percent.

Utilization for the quarter was 87 percent, compared with 87 percent for the second quarter of fiscal 2012 and 85 percent for the third quarter of fiscal 2011.

Attrition for the third quarter of fiscal 2012 was 13 percent, compared with 12 percent for the second quarter of fiscal 2012 and 15 percent for the third quarter of fiscal 2011.

Net Revenues by Operating Group

  • Communications, Media & Technology: $1.5 billion, compared with $1.4 billion for the third quarter of fiscal 2011, an increase of 4 percent in U.S. dollars and 8 percent in local currency.
  • Financial Services: $1.5 billion, compared with $1.4 billion for the third quarter of fiscal 2011, an increase of 4 percent in U.S. dollars and 8 percent in local currency.
  • Health & Public Service: $1.1 billion, compared with $971 million for the third quarter of fiscal 2011, an increase of 12 percent in U.S. dollars and 13 percent in local currency.
  • Products: $1.7 billion, compared with $1.6 billion for the third quarter of fiscal 2011, an increase of 8 percent in U.S. dollars and 11 percent in local currency.
  • Resources: $1.4 billion, compared with $1.3 billion for the third quarter of fiscal 2011, an increase of 5 percent in U.S. dollars and 8 percent in local currency.

Net Revenues by Geographic Region

  • Americas: $3.2 billion, compared with $2.9 billion for the third quarter of fiscal 2011, an increase of 10 percent in U.S. dollars and 12 percent in local currency.
  • Europe, Middle East and Africa (EMEA): $2.9 billion, compared with $2.9 billion for the third quarter of fiscal 2011, a decrease of 1 percent in U.S. dollars and an increase of 4 percent in local currency.
  • Asia Pacific: $1.0 billion, compared with $865 million for the third quarter of fiscal 2011, an increase of 18 percent in both U.S. dollars and local currency.

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