Answerthink, Inc. (NASDAQ: ANSR), today announced its financial results for the second quarter, which ended June 29, 2007. Compared to the second quarter of 2006, revenues were down 7 percent, primarily as a result of the Company's exit from its Lawson and SAP staff augmentation contracts in 2006 and lower Business Intelligence revenues. Net income decreased more than 35 percent to $1.451 million, from $2.121 million for the same period in 2006.

Second quarter revenue was $45.5 million. This represents a 14% sequential increase from the first quarter of $39.9 million, driven by The Hackett Group’s sequential growth of 18%.

Diluted earnings per share was $0.03 in the second quarter of 2007 compared to a diluted loss per share of $0.05 in the first quarter and diluted earnings per share of $0.05 for the second quarter of 2006. Pro forma diluted earnings per share was $0.04 in the second quarter of 2007 compared to a pro forma diluted loss per share of $0.01 in the first quarter of 2007 and pro forma diluted earnings per share of $0.06 in the second 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 in the complete financial release at the Answerthink website.

As of the end of the second quarter of 2007, the Company’s cash balances, including restricted cash, amounted to $21.5 million. During the quarter, the Company spent $1.75 million to repurchase 509 thousand shares of the Company’s common stock. As of the end of the quarter, $4.4 million remained available under the Company’s share repurchase program authorization.

"We are seeing the introduction of our Transformational Benchmark and the sales incentive changes we made at the beginning of the year favorably impact our growth," said Ted A. Fernandez, Chairman and CEO of Answerthink. "Specifically, we experienced sequential growth across all of our Hackett, REL and Best Practice Solutions groups. This momentum, along with cost management programs also instituted at the beginning of the year, should continue to favorably impact our results."

Based on the current economic outlook, the Company estimates total revenues for the third quarter of 2007 to be in the range of $44 million to $46 million. The Company also estimates pro forma diluted earnings per share to be in the range of $0.04 to $0.06.

Find the complete financial release and conference call replay information at the Answerthink website.

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