Charles River Associates (NASDAQ: CRAI), a worldwide leader in providing management, economic and financial consulting services, today announced second quarter financial results for the 13 weeks ended July 2, 2011. Second quarter revenue of $80.6 million was up 3% from the 13-week first quarter of fiscal 2011 and up 18% from the 12-week second quarter of fiscal 2010. Non-GAAP revenue for the second quarter was $79.6 million, an increase of 3% and 20% compared to the first quarter of fiscal 2011 and the second quarter of fiscal 2010, respectively.
Net income for the second quarter of fiscal 2011 was $4.3 million, or $0.40 per diluted share. This compares to net income for the first quarter of fiscal 2011 of $4.4 million, or $0.41 per diluted share, and a net loss of $1.5 million, or $0.14 per share, for the second quarter of fiscal 2010. Net income for the second quarter of fiscal 2011 includes a pre-tax restructuring charge of $1.0 million related to the Company’s former Houston office lease. Non-GAAP net income for the second quarter of fiscal 2011 was $5.2 million, or $0.48 per diluted share, an increase of 20% and 159% compared to the first quarter of fiscal 2011 and the second quarter of fiscal 2010, respectively.
A complete reconciliation between revenue, net income (loss) and net income (loss) per share on a GAAP and non-GAAP basis for the second quarters of fiscal 2011 and fiscal 2010, the first quarter of fiscal 2011, and the year-to-date periods for fiscal 2011 and fiscal 2010 is provided in the financial tables at the end of this release.
Financial Results Comments“During the second quarter, we saw a continuation of the broad-based demand for our services that we experienced in the past several quarters, and we are pleased with how our business performed,” said Paul Maleh, CRA’s President and Chief Executive Officer. “We delivered sequential revenue growth, 74% utilization, and a second consecutive quarter of non-GAAP double-digit operating margin. This is the first time we achieved two consecutive quarters of double-digit operating margin on a non-GAAP basis since fiscal 2007. Our results were driven by solid companywide contributions in both our Litigation and Management Consulting businesses, particularly in our Competition, Finance, and Global Industrial Consulting practices.”