FTI's 1Q Revenue Jumps 35%
The company said revenue growth in its technology segment increased 71.1% to $56.5 million.
May 7, 2008
Business consulting firm FTI said Wednesday its first-quarter earnings rose 63.9%, to 59 cents a share from 36 cents in the first quarter of 2007. The company's first-quarter revenues increased 34.9% to a record $307.1 million from $227.7 million in the year-ago first quarter.
The company said revenue growth in its technology segment increased 71.1% to $56.5 million compared to $33.1 million in the prior year's first quarter.
"The [technology] segment continued to experience significant demand from class action proceedings, merger and acquisition activity, governmental and internal investigations," FIT said. "The segment is differentiated in the market by its ability to process extremely large volumes and highly complex data, global presence, multilingual capabilities and vertical market expertise in the pharmaceutical, financial services, banking, hedge fund and private equity industries. Margins increased due to increased revenue and the continuing shift in mix from consulting fee-based services to the more profitable and recurring subscription-based and on-demand software licensing and processing fees.
Meanwhile, revenues grew in the company's corporate finance restructuring unit by 27.7%, to $79.3 million, compared to $62.1 million in the prior-year period. "The segment again saw strong demand in middle market cases, primarily due to restructuring activity in the subprime mortgage, financial institution and housing-related markets," according to FTI.
The advisory firm said its corporate finance restructuring unit saw demand from sectors affected by the housing downturn, such as building materials, retail, consumer durables and monoline insurers.
"There was also strong demand from the healthcare sector for both consulting and restructuring services, including productivity and profit improvement services especially in the revenue cycle, supply chain and managed care areas," according to FTI.
In 2008, FTI said it expects revenues of between $1.3 billion and $1.375 billion. The company expects to earn $2.50 to $2.63 per share this year.
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