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10-QPeriod: Q2 FY2010

Accenture plc Quarterly Report for Q2 Ended Feb 28, 2010

Filed March 26, 2010For Securities:ACN

Summary

Accenture plc reported its financial results for the second quarter and first half of fiscal year 2010, ending February 28, 2010. The company experienced a decrease in net revenues for both the quarter and the year-to-date period, largely attributed to ongoing economic impacts affecting client demand, particularly in its consulting services. While net revenues saw a modest decline, operating income and margins demonstrated resilience in certain segments, with gross margin showing improvement. The company continued its focus on cost management and operational efficiency. Despite revenue headwinds, Accenture maintained a strong utilization rate for its client-service professionals and actively managed its workforce. The company also continued its share repurchase program, reflecting confidence in its financial position and commitment to returning value to shareholders. Overall, Accenture navigated a challenging economic environment by focusing on core operational strengths and strategic resource management.

Financial Statements
Beta
Revenue$5.54B
Cost of Revenue$3.85B
Gross Profit$1.69B
Operating Expenses$4.89B
Operating Income$650.97M
Interest Expense$4.52M
Net Income$399.76M
EPS (Basic)$0.63
EPS (Diluted)$0.60
Shares Outstanding (Basic)638.70M
Shares Outstanding (Diluted)769.40M

Key Highlights

  • 1Net revenues for the second quarter of fiscal 2010 decreased by 2% in USD to $5.18 billion, and by 8% in local currency, compared to the prior year period.
  • 2For the six months ended February 28, 2010, net revenues decreased by 6% in USD to $10.56 billion, and by 10% in local currency.
  • 3Diluted earnings per share for the second quarter were $0.60, a decrease from $0.63 in the prior year period, impacted by lower revenues and operating results.
  • 4Gross margin improved to 32.7% for the second quarter of fiscal 2010, up from 30.8% in the prior year period, driven by cost management and operational efficiencies.
  • 5The company's utilization rate remained strong at approximately 88% for the second quarter of fiscal 2010.
  • 6Accenture continued its share repurchase program, with approximately $4.1 billion in aggregate available authorization for share repurchases and redemptions as of February 28, 2010.
  • 7Cash and cash equivalents stood at $4.1 billion as of February 28, 2010, reflecting a decrease from $4.5 billion at the end of the previous fiscal year.

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