BearingPoint Hires Oracle Exec

The consulting firm also reveals that its books are in bad shape.
By TSC Staff ,

Oracle

(ORCL) - Get Report

finance chief Harry You has resigned to take the helm at consultancy

BearingPoint

(BE) - Get Report

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The news came as Tysons Corner, Va.-based BearingPoint warned of an unexpected fourth-quarter loss and said it would delay filing its annual report with regulators as it examines its accounting.

BearingPoint said it has identified material weaknesses in its internal controls and that it may need to restate prior financials.

The company also said fourth-quarter and full-year results, when finally posted, will reflect charges relating to a recent debt refinancing and other items whose booking must be reviewed. BearingPoint expects a loss for the quarter and possibly for the year; analysts surveyed by Thomson First Call had forecast profits of 9 cents a share for the fourth quarter and a quarter a share for the year.

BearingPoint said 2004 revenue will be in line with expectations at $3.45 billion.

BearingPoint also indicated there has been an impairment of goodwill as of Dec. 31 in its Europe, Middle East and Africa business segment. The company has identified certain items that will probably require the restatement of its financial results for the first three quarters of full-year 2004 and possibly before.

"In the two months since I joined BearingPoint, our new management team has identified issues that must be addressed," said BearingPoint finance chief Joe Corbett. "As a result, we have significantly expanded our review procedures and are working to evaluate all material financial and accounting matters."

Back at Oracle, the talk was more optimistic.

"We are proud of the numerous Oracle alumni that have gone on to become CEOs of enterprise software and IT service firms," said Oracle CEO Larry Ellison. "We wish Harry good fortune in his new job and look forward to partnering with him and BearingPoint for years to come."

Oracle said co-president Safra Catz will be acting chief financial officer until a new CFO can be hired.

On Thursday, BearingPoint slipped a dime to $7.56 and Oracle lost 17 cents to $12.99.

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