This summary is based on the third quarter fiscal 2007 earnings call conducted by Accenture Ltd. (ACN: chart) on June 28, 2007.

Managing Director of IR: Richard Clarke
Chairman & CEO: Bill Green
CFO: Pam Craig
COO: Steve Rohleder

Key Investors Issues

- EPS were 54 cents a share compared to 56 cents a share last year.
- Net income rose to $345.4 million from $342.3 million in the year-ago quarter.
- Revenue excluding reimbursements to clients advanced to $5.08 billion from $4.41 billion a year ago.

Third Quarter Highlights

Net revenues were $5.1 billion, a year-over-year increase of 15% in U.S. dollars and 9% in local currency, and at the high-end of previous outlook of $4.9 billion to $5.1 billion.

Consulting revenues were $3.1 billion, an increase of 16% in U.S. dollars and 9% in local currency over the third quarter last year.

Outsourcing revenues were $2 billion, an increase of 15% in U.S. dollar and 9% in local currency over the same period last year.

- In terms of the geographic regions, in the Americas, revenues grew 7% in U.S. dollars and 6% in local currency driven by the United States and Brazil.
- EMEA revenues increased 19% in U.S. dollars and 8% in local currency driven by strong results in Spain, The Netherlands, Italy and Germany.
- Revenues in Asia Pacific grew 44% in U.S. dollars and 37% in local currency. This marks fifth consecutive quarter of double-digit growth in both U.S. dollars and local currency in Asia Pacific.
- The revenue growth was driven by consulting services across all geographic regions, strong outsourcing growth in the Americas, and solid contributions from Consumer Goods & Services and Health & Life Sciences.

The company provides comparisons to the third quarter last year on both a GAAP basis and on an adjusted basis. The adjusted basis excludes a $58 million benefit from a reduction and reorganization liabilities in the third quarter last year.

The company grew revenues 15% in U.S. dollars with double-digit growth in both consulting and outsourcing.

- Earnings performance of 54 cents per share was strong.
- The company delivered strong new bookings of $6.2 billion, the highest bookings in 13 quarters.
- Operating margin of 13.4% is inline with expectations.
- Balance sheet remained strong and the company generated tremendous free cash flow of $896 million.
- The company grew headcount by 19% recruiting top talent, while attrition was stable and utilization continues to be well above 80%.

Gross margin was 31.7% compared with 33% in the third quarter last year.

- SG&A costs were $921 million or 18.1% of net revenues. This compares with $816 million or 18.5% of net revenues for the third quarter last year. This improvement was inline with expected as the company continues multiyear efforts to reduce SG&A costs as a percentage of net revenue.
- GAAP operating income was $682 million, reflecting operating margin of 13.4%. This compares with $690 million or 15.7% operating margin on a GAAP basis, and $632 million or 14.3% operating margin on an adjusted basis in the third quarter last year.
- Underlying margin results were solid, inline with expectations, and allowed to continue to accrue annual bonus and invest in business.
- The effective tax rate was 33.3%. This rate is lower than previous forecast due to a shift in income between countries.

GAAP income before minority interest was $473 million, compared with $499 million on a GAAP basis and $445 million on an adjusted basis in the third quarter last year.

- GAAP EPS was 54 cents per share compared with 56 cents per share on a GAAP basis and 50 cents per share on an adjusted basis for third quarter last year.
- Free cash flow was $896 million resulting from operating cash flow of $978 million, less property and equipment additions of $82 million.
- Day’s services outstanding or DSO''s were 36 days, reflecting peoples continued focus on strong cash flow.
- Total cash balance at May 31 was $3.09 billion compared with $3.07 billion at August 31st.
- Cash combined with $352 million of fixed-income securities classified as investments on balance sheet was $3.45 billion compared with $3.53 billion at August 31st.
- Total debt was $28 million compared with $52 million at August 31st.

- For the 12 months ended May 31st, return on invested capital was 66%, return on equity was 71% and return on assets was 18%.
- The company repurchased or redeemed 24.1 million shares for approximately $835 million. This included 16.9 million shares repurchased or redeemed at a discount and 7.2 million shares purchased at market. The average price of shares repurchased and redeemed in the quarter was $34.71 per share.
- At May 31st, Accenture''s total outstanding share repurchase authority was approximately $2 billion.
- Public flow at the end of the quarter was approximately 65%.

Four of five operating groups delivered record high revenues in U.S. dollars.

- Double-digit expansion in resources was driven by strong consulting growth across all geographic regions, especially in energy and utilities.
- Top-line growth in financial services was primarily driven by strong demand in capital markets across all geographic regions, and the company saw growth in banking and insurance in EMEA.
- The company continues to work to improve delivery and efficiencies, which affected operating income. Products delivered strong revenue growth given the tough year-on-year comparison, which also affected operating income.

The globalization trend is having the greatest effect in management consulting, with strong demand across all service lines, especially supply chain, CRM and human performance.