The Hackett Group, Inc. (NASDAQ: HCKT), a global strategic advisory firm, last week announced its financial results for the fourth quarter and fiscal year, which ended December 28, 2007. In January of 2008, Answerthink, Inc. was renamed The Hackett Group, Inc. and the Answerthink technology practices were renamed Hackett Technology Solutions. A webcast replay of the financial results conference call runs through 5:00 p.m. ET, March 11, 2008.

Visit the company website for the complete financial release. Highlights include:

Fourth quarter 2007 revenue was $44.9 million, an 18% increase from the same period in 2006. Excluding revenues from the Lawson and SAP staff augmentation practices exited in the fourth quarter of 2006, fourth quarter revenues increased 21% from the same period in 2006.

Pro forma diluted earnings per share were $0.08 in the fourth quarter of 2007, as compared to $0.01 in the fourth quarter of 2006. Pro forma information is provided to enhance the understanding of the Company's financial performance and is reconciled to the Company's GAAP information (see company website).

Diluted earnings per share were $0.14 in the fourth quarter of 2007, as compared to a diluted loss per share of $0.03 in the fourth quarter of 2006. Diluted earnings per share for the fourth quarter of 2007 benefitted by $2.2 million from the recovery of funds resulting from the previously disclosed UK misappropriation.

Fiscal year revenue was $177.0 million, a 2% decrease from the previous fiscal year. Diluted earnings per share were $0.20 in fiscal year 2007, as compared to a diluted loss per share of $0.11 for the previous fiscal year. Pro forma diluted earnings per share were $0.17 for fiscal year 2007, as compared to $0.13 for the previous fiscal year.

At the end of the fourth quarter of 2007, the Company's cash balances were $27.7 million, including $7.0 million in Bank of America's Columbia Strategic Cash Portfolio, of which $2.5 million was redeemed after year-end. During the quarter, the Company used $4.2 million to repurchase 1.03 million shares of the Company's common stock. As of the end of the fourth quarter, $6.1 million remained available under the Company's share repurchase program authorization. On February 22, 2008, the Board of Directors authorized an additional $5.0 million increase to the share buyback program.

"We are pleased to see the strong client reaction to our Hackett Group business model and value proposition reflected in our quarterly and year-end results," stated Ted A. Fernandez, Chairman & CEO of The Hackett Group. "We expect to carry this momentum into 2008, as clients continue to seek our advice and implementation assistance as they evaluate their organizational effectiveness in a slowing https://tekrati.com/images/InsertGreen.gifeconomy."

Based on the current economic outlook, the Company estimates total revenues for the first quarter of 2008 to be in the range of $42.0 million to $44.0 million and estimates pro forma diluted earnings per share to be in the range of $0.04 to $0.06. At the midpoint of the revenue guidance, Hackett Group revenue (excluding Hackett Technology Solutions) would be up approximately 30% on a year over year basis.

Conference call webcast/replay

The Hackett Group is webcasting its financial results conference. An online replay of the call will be available through 5:00 P.M. ET on Tuesday, March 11, 2008. To access the call, visit http://www.thehackettgroup.com or http://www.streetevents.com.

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