This summary is based on the second quarter fiscal 2008 earnings call conducted by Accenture (ACN: chart) on March 27, 2008.

Management:

Chairman and Chief Executive Officer: William Green
Chief Financial Officer: Pamela Craig
Chief Operating Officer: Stephen Rohleder
Investor Relations: Richard Clark

Key Investors Issues

- EPS were 64 cents per share compared to 47 cents per share last year.
- Net income was $406.6 million compared to $296.7 million a year earlier.
- Net revenue, which excludes reimbursements from clients for expenses such as consultants'' travel, rose to $5.61 billion from $4.75 billion.

Second Quarter Highlights

Revenues before reimbursements were $5.61 billion, compared with $4.75 billion for the second quarter of fiscal 2007, an increase of 18% in U.S. dollars and 11% in local currency.

- Consulting net revenues were $3.35 billion, an increase of 18% in U.S. dollars and 11% in local currency over the second quarter last year.
- Outsourcing net revenues were $2.26 billion, an increase of 18% in U.S. dollars and 11% in local currency over the same period last year.

EPS were 64 cents per share, compared with 47 cents per share in the second quarter last year, an increase of 36 %.

- Operating income increased 14 %, to $638 million, or 11.4% of net revenues, compared with $559 million, or 11.8% of net revenues, in the second quarter last year.
- Gross margin (gross profit as a percentage of net revenues) was 29.5 %, compared with 29.6% in the second quarter of fiscal 2007.

Selling, general and administrative expenses were $1,009 million, or 18% of net revenues, compared with $839 million, or 17.7% of net revenues, in the second quarter last year.

- The company’s effective tax rate was 17.8 %, compared with 29.4% in the second quarter last year, driven primarily by benefits related to final determinations in the second quarter of fiscal 2008.
- Income before minority interest was $534 million, compared with $413 million for the same period of fiscal 2007, an increase of 29%.
- Operating cash flow was $724 million.

- Property and equipment additions were $79 million.
- Free cash flow, defined as operating cash flow net of property and equipment additions, was $645 million.
- Accenture’s total cash balance at Feb. 29, 2008 was $2.58 billion, compared with $3.31 billion at Aug. 31, 2007. Cash combined with $129 million of fixed-income securities classified as investments on the company’s balance sheet was $2.71 billion at Feb. 29, 2008, compared with $3.61 billion at Aug. 31, 2007. Total debt at Feb. 29, 2008 was $9 million.

New bookings were $6.44 billion.

- Consulting bookings were $3.79 billion, or 59% of new bookings.
- Outsourcing accounted for $2.65 billion, or 41% of new bookings.

Net revenues for Accenture’s five operating groups were as follows:

- Communications & High Tech: $1,339 million, compared with $1,086 million for the second quarter of fiscal 2007, an increase of 23% in U.S. dollars and 15% in local currency.
- Financial Services: $1,209 million, compared with $1,051 million for the same period last year, an increase of 15% in U.S. dollars and 7% in local currency.
- Products: $1,439 million, compared with $1,165 million for the year-ago period, an increase of 24% in U.S. dollars and 17% in local currency.
- Public Service: $675 million, compared with $655 million for the year-ago period, an increase of 3% in U.S. dollars and a decrease of 1% in local currency.
- Resources: $944 million, compared with $787 million for the same period last year, an increase of 20% in U.S. dollars and 12% in local currency.

Net revenues by geographic region were as follows:

- Americas: $2,317 million, compared with $2,043 million for the second quarter of fiscal 2007, an increase of 13% in U.S. dollars and 10% in local currency.
- Europe, Middle East and Africa (EMEA): $2,791 million, compared with $2,334 million for the second quarter of fiscal 2007, an increase of 20% in U.S. dollars and 9% in local currency.
- Asia Pacific: $503 million, compared with $373 million for the year-ago period, an increase of 35% in U.S. dollars and 23% in local currency.

- Accenture repurchased or redeemed 16.3 million shares for a total of $549 million, including $120 million for 3.6 million shares repurchased in the open market. At Feb. 29, 2008, Accenture had $3.6 billion of share repurchase authority remaining.
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