Accounting & Tax

BearingPoint Restates, CFO Retires

The finance chief follows the CEO out the door of the former KPMG consultancy.
Stephen TaubNovember 22, 2004

Robert Falcone, the CFO of BearingPoint will reportedly retire at the end of November, making him the second top executive to leave the KPMG technology-consulting spinoff this month.

The firm also said it found a $92.9 million accounting error. BearingPoint spokesman John Schneidawind told the Washington Post that Falcone’s departure and the accounting error weren’t related.

On Nov. 10, chairman and chief executive Randolph Blazer resigned from BearingPoint. He had served as CEO since April 2000, when the company was spun off from KPMG LLP.

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BearingPoint stated that after filing its quarterly report in September, company officials discovered an error that resulted in the firm’s overstatement of its accounts receivable by $92.9 million and an understatement of its unbilled revenue being understated by the same amount.

The corrections had no effect on Bearing Point’s previously reported net income, earnings per share, or operating cash flow, according to the company.

The current restatement marked the second time BearingPoint had to fix its third-quarter financial statement. Earlier this month, it reduced two line items on its balance sheet by $3 million, according to the Post.

Falcone, 57, had served as CFO since April 2003. Until BearingPoint finds a replacement, Jeffrey Anderson will head finance administration and Thomas Wilde would direct finance operations Anderson had headed up the company’s Global Financial Services practice while Wilde led its Managed Services Solution practice.

At the time of Blazer’s resignation, the company announced that its board named Rod McGeary to serve as CEO while it searches for a permanent successor. McGeary was also named chairman.