Diamond Management & Technology Consultants, Inc. (DTPI) announced that fiscal year 2008 net revenue spiked to $182.3 million, up 8% from $168.7 million the previous year. In addition, the management and technology consulting firm saw net income jump to $19.1 million, up 35% from $14.1 million in 2007. The company’s balance sheet wrapped up an impressive year as well, showing off $53.3 million in cash and cash equivalents with no debt. Diamond Management also generated free cash flow of $22.9 million during the year.
“Fiscal year 2008 was a year of two parts. In the first half of the year, we generated 14% growth, in line with our target growth rate. As the economy slowed, our business slowed and we finished the year with 8% year-over-year growth,” Chief Executive Adam Gutstein said. “Our core clients, market leaders in their respective industries, continue to use our services despite and perhaps because of, the difficult environment. We’re pleased our top 10 clients from the March quarter continue with us in the current quarter. We have an impressive track record of helping companies create value, whether in terms of growth or cost containment, and in delivering projects on time and on budget.”
However, the company is offering a cautious outlook.
“We have been through difficult market environments in the past and understand how to manage our business and position ourselves for growth as the market turns. We are reacting by reducing discretionary spending, moderating our hiring and managing our expenses in general, even as we continue to invest in our offerings and to expand our industry practices and international geographies,” Gutstein said. “We believe that we have the fundamentals in place to benefit from the inevitable upturn in the demand environment.”
Chicago-based Diamond Management completed a Dutch Auction tender offer for 2.6 million shares at $6.00 per share for a total payout of $16.5 million during the fourth quarter of 2007.
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