CRA's 4Q Profit Jumps 63 Percent

CRA International earned $10.3 million, or 89 cents per share, in the quarter ended Nov. 24, compared with profit of $6.3 million, or 51 cents per share, in the fiscal fourth quarter of 2006.

Revenue, which the company collects from charging hourly consulting fees, leaped 14 percent to $98.7 million from $86.3 million.

Analysts polled by Thomson Financial forecast a profit of 75 cents per share on $97 million revenue.

Chief Executive James C. Burrows said in a statement CRA in the fourth quarter generated "notable increases across a variety of practices." Fees grew especially in consulting for competition, energy and the environment, chemicals, and transfer pricing, he said.

While he said he was pleased with the growth, several factors dragged profit margin.

The company only utilized 74 percent of its consultants during the quarter, while it targets a utilization rate of 76 percent to 78 percent.

Also, the company poured money into opening offices and expanding its practices. Expenses swelled 25 percent during the fourth quarter, leading the company to undertake a review of costs to see where it can trim.

For fiscal 2007, CRA earned $32.6 million, or $2.68 per share, on revenue of $394.6 million.