The Hackett Group(US:HCKT)2023-08-09 18:46Revenue Performance - Total revenue for the second quarter of 2023 was $77.1 million, a 1.5% increase from $75.9 million in the same period of 2022[84]. - Total revenue for the first six months of 2023 was $148.3 million, a decrease of 2.1% compared to $151.6 million in the first six months of 2022[84]. - Global Strategy & Business Transformation segment revenue was $43.6 million in Q2 2023, down from $44.5 million in Q2 2022, and $86.0 million for the first six months of 2023, compared to $87.2 million in the same period of 2022[86]. - Oracle Solutions segment revenue was $20.8 million in Q2 2023, slightly up from $20.0 million in Q2 2022, but down to $37.9 million for the first six months of 2023 from $41.5 million in the same period of 2022[87]. - SAP Solutions segment revenue increased to $12.7 million in Q2 2023 from $11.4 million in Q2 2022, and to $24.4 million for the first six months of 2023 from $22.9 million in the same period of 2022[88]. Cost and Expense Analysis - Personnel costs before reimbursable expenses were $45.4 million in Q2 2023, a 1.6% increase from $44.7 million in Q2 2022, and $88.6 million for the first six months of 2023, a decrease of 3.7% from $92.0 million in the same period of 2022[91]. - Selling, General and Administrative (SG&A) costs increased by 10% to $17.4 million in Q2 2023, and by 9% to $32.9 million for the first six months of 2023 compared to the same periods in 2022[94]. Profitability Metrics - Net income for Q2 2023 was $8.7 million, down from $10.2 million in Q2 2022, and $16.9 million for the first six months of 2023, compared to $20.7 million in the same period of 2022[83]. - Diluted net income per share was $0.32 for Q2 2023, unchanged from Q2 2022, and $0.62 for the first six months of 2023, down from $0.65 in the same period of 2022[83]. - Oracle Solutions segment profit increased to $5.9 million in Q2 2023 from $4.3 million in Q2 2022, and $8.9 million for the first six months of 2023 compared to $8.8 million in the same period in 2022[99]. - SAP Solutions segment profit remained stable at $3.0 million in Q2 2023 and increased to $5.6 million for the first six months of 2023 from $5.4 million in the same period in 2022[100]. Financial Position and Cash Flow - Cash and cash equivalents decreased to $15.8 million as of June 30, 2023, from $30.3 million at the end of 2022, indicating a need for potential additional funding for expansion and product development[103]. - Net cash provided by operating activities dropped to $4.7 million in the first six months of 2023 from $24.3 million in the same period in 2022, primarily due to increased accounts receivable and contract assets[105]. - Net cash used in investing activities was $2.1 million in the first six months of 2023, slightly down from $2.3 million in 2022, mainly for the development of new technologies[107]. - Net cash used in financing activities increased to $16.9 million in the first six months of 2023 from $6.1 million in 2022, driven by debt repayments and dividend payments[108]. - As of June 30, 2023, the company had $53.0 million in outstanding borrowings under its Credit Facility, with an additional borrowing capacity of approximately $47.0 million[109]. Risk Factors - The company faces market risks related to interest rate fluctuations and foreign currency exchange rates, which could impact its financial performance[111][112].