October 02, 2002, 2:23 PM — KPMG Consulting Inc., a provider of IT services that was spun off from accounting giant KPMG LLP last year, has renamed itself BearingPoint Inc. to further differentiate itself from its former parent.
The nautical term "bearing point" means "setting direction to an end point" and describes the company's goal to "set the business direction" of its clients, Chairman and Chief Executive Officer Rand Blazer said during a press conference Wednesday.
The company's ticker symbol is also changing from KCIN to BE. The new ticker symbol debuts Thursday on the New York Stock Exchange.
The new name, chosen from about 550 options suggested by employees and outside experts, will be promoted with a global communications and advertising campaign that began Wednesday.
When all is said and done, the name change and rebranding process is expected to cost the company between US$20 million and $40 million, Blazer said, reiterating estimates provided previously by the company.
The company reported disappointing results in its fourth fiscal quarter of 2002, which ended June 30. [See: "KPMG Consulting takes a hit in Q4" Aug. 7.] It posted net income of $404,000, less than $.01 per share, compared with net income of $22.45 million, or $0.14 per share, in the fourth fiscal quarter of 2001. Revenue came in at $583.2 million, down from $722.9 million in 2001's fiscal fourth quarter.
The company ended its full 2002 fiscal year with a net loss of $26.9 million, or a loss of $0.17 per share. Revenue for fiscal 2002 dropped to just under $2.37 billion from $2.85 billion in fiscal 2001.
