DiamondCluster Reports Another Tough Quarter

Technology consultant DiamondCluster International's quarterly loss grew during its fiscal 2002 fourth quarter, as revenues dropped significantly from the previous year.

Net loss for the quarter was $31.9 million, or $1.02 per diluted share, compared to a loss of $27.3 million, or 89 cents per diluted share, for the same period last year.

Revenue for the fourth quarter came in at $36.1 million, down more than 50 percent from the $74.9 million brought in for the previous year's quarter. And cash earnings per share loss was 7 cents per diluted share for the quarter, compared to income of 19 cents for last year's quarter.

For fiscal 2002, net revenue was $181.2 million, down from $266.5 million for fiscal 2001. Net loss for the year was $133.7 million ($4.34 per diluted share), compared to a net loss of $12.9 million (49 cents per diluted share) for 2001.

The good news, says the company, is that revenue loss appears to be stabilizing and net loss decreased quarter over quarter, from a net loss of $43.1 million, or $1.39 per share, in the third quarter of fiscal 2002.

Chairman and CEO Mel Bergstein in a statement said the company's North American operations posted a sequential increase of 8 percent, the first sequential increase in six quarters. However, business in Europe and Latin America remained weak. Bergstein expects the company to increase North America net revenue by between 5 and 10 percent for the next quarter, with Europe and Latin America remaining flat.

The company ended the quarter on March 31, 2002, with a cash balance of $96.8 million.