First Consulting Group (FCGI)

General and Administrative Expenses. General and administrative expenses were $29.5 million compared to $26.9 million for the nine months ended September 29, 2006. This is primarily due to a $1.6 million charge in the second quarter of 2007 for acquired in-process research and development expense related to the Zorch acquisition (see Note 4 of Notes to Consolidated Financial Statements). Excluding this item, general and administration expenses would have increased 3.8% to $27.9 million for the nine months ended September 28, 2007 from $26.9 million for the nine months ended September 29, 2006. General and administrative expenses as a percentage of net revenues were 14.7% of revenues for the nine months ended September 28, 2007, but would have increased slightly to 13.9% for the nine months ended September 28, 2007 from 13.8% for the nine months ended September 29, 2006, exclusive of the in-process research and development charge from the Zorch acquisition.

 

General and Administrative Expenses.  General and administrative expenses were $19.5 million compared to $18.4 million for the six months ended June 30, 2006.  This is primarily due to a $1.6 million charge in the second quarter for acquired in-process research and development expense related to the Zorch acquisition (See Note 4 of Notes to Consolidated Financial Statements).  Excluding this item, general and administration expenses would have decreased 2.8% to $17.9 million for the six months ended June 29, 2007 from $18.4 million for the six months ended June 30, 2006, due to lower bad debt costs.  General and administrative expenses as a percentage of net revenues were 14.5% of revenues for the six months ended June 29, 2007, but would have decreased to 13.4% for the six months ended June 29, 2007 from 14.0% for the six months ended June 30, 2006, exclusive of the in-process research and development charge from the Zorch acquisition.

General and Administrative Expenses.  General and administrative expenses were consistent at $9.2 million for the quarters ended March 30, 2007 and March 31, 2006.  General and administrative expenses as a percentage of net revenues decreased slightly to 13.7% for the quarter ended March 30, 2007 from 13.8% for the quarter ended March 31, 2006.

General and Administrative Expenses.   General and administrative expenses were $42.1 million for the year ended December 30, 2005, an increase of 11.6% from $37.7 million for the year ended December 31, 2004. The increase was entirely due to non-salary costs, as general and administrative salary costs declined by approximately $1.5 million during the year. The most significant increase was attributable to infrastructure costs of approximately $3.0 million related to facilities and equipment needed to directly support our outsourcing business. Further, we incurred $2.5 million ($1.8 million in the fourth quarter) of severance costs for the year ended December 30, 2005 compared to approximately $125,000 for the year ended December 31, 2004. A significant share of the fourth quarter severance related to the departure of our former Chief Executive Officer rather than to cost reductions. We also incurred $1.0 million of facility closure costs, primarily in the Life Sciences segment, in the fourth quarter of fiscal year 2005. Finally, we experienced higher costs in a number of other areas including outside professional services such as audit, legal, and consulting costs, nonbillable travel, recruiting costs, and rent in our growing offshore shared service centers. General and administrative expenses as a percentage of net revenues increased to 15.1% for the year ended December 30, 2005 from 14.0% for the year ended December 31, 2004.

General and Administrative Expenses.  General and administrative expenses increased to $43.9 million for the nine months ended September 30, 2005, an increase of 16.4% from $37.7 million for the nine months ended September 24, 2004.  The vast majority of the increase was due to non-salary costs.  The most significant increase was in infrastructure costs of approximately $2.4 million related to facilities and equipment needed to directly support our outsourcing business.  Further, we incurred approximately $800,000 of severance costs in the nine months ended September 30, 2005 compared to approximately $100,000 in the nine months ended September 24, 2004.  Finally, we experienced higher costs in a number of other areas including outside professional services such as audit, legal, and consulting costs, nonbillable travel, recruiting costs, and rent in our growing offshore shared service centers.  General and administrative expenses as a percentage of net revenues increased to 21.0% for the nine months ended September 30, 2005 from 19.1% for the nine months ended September 24, 2004.

 

General and Administrative Expenses.  General and administrative expenses increased to $29.3 million for the six months ended July 1, 2005, an increase of 17.3% from $25.0 million for the six months ended June 25, 2004.  The vast majority of the increase was due to non-salary costs.  The most significant increase was in infrastructure costs of approximately $1.6 million related to facilities and equipment needed to directly support our outsourcing business.  Further, we incurred approximately $470,000 of severance costs in the six months ended July 1, 2005 (primarily related to a former executive officer) compared to essentially none in the six months ended June 25, 2004.  Finally, we experienced higher costs in a number of other areas including outside professional services such as audit, legal, and consulting costs, nonbillable travel, recruiting costs, and rent in our growing offshore shared service centers.  General and administrative expenses as a percentage of net revenues increased to 21.6% for the six months ended July 1, 2005 from 18.9% for the six months ended June 25, 2004.

 

General and Administrative Expenses.  General and administrative expenses increased to $14.7 million for the quarter ended April 1, 2005, an increase of 24.2% from $11.9 million for the quarter ended March 26, 2004.  Almost the entire increase was due to non-salary costs.  The most significant increase was in infrastructure costs of approximately $1.1 million related to facilities and equipment needed to directly support our growing outsourcing business.  Further, we incurred approximately $500,000 more in travel costs during the first quarter of fiscal year 2005 than in the first quarter of 2004.  Finally, we experienced higher costs in a number of other areas including severance, rent in our growing offshore shared service centers, and outside professional services such as audit, legal, and consulting costs.  General and administrative expenses as a percentage of net revenues increased to 21.6% for the quarter ended April 1, 2005 from 18.2% for the quarter ended March 26, 2004.  After having experienced some significant growth quarter-to-quarter over the past year for the items noted above, we expect the ongoing level of general and administrative expenses to be consistent with their current level in the near future.

 

General and Administrative Expenses.  General and administrative expenses increased to $57.0 million for the year ended December 26, 2003, an increase of 1.4% from $56.2 million for the year ended December 27, 2002.  The increase was primarily due to general and administrative expenses from our acquired companies of $5.0 million, as well as investments in software product development and related technologies in Life Sciences and in the Patient Safety Institute.  General and administrative expenses, as a percentage of net revenues, increased slightly from 21.0% for the year ended December 27, 2002 to 21.1% for the year ended December 26, 2003.  A combination of acquisition integration initiatives and other cost reductions reduced our general and administrative expenses substantially in the last quarter of 2003.