Diamond Management & Technology Consultants F4Q09 (Qtr End 3/31/09) Earnings Call Transcript

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2009-05-08 12:12:16.0

Tags: Seeking Alpha, DiamondCluster International Inc.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). And our first quarter comes from the line of Kevin Liu with B. Riley. Please proceed with your question.

Kevin Liu - B. Riley & Company

Hi. Good morning, guys.

Adam Gutstein

Good morning, Kevin.

Kevin Liu - B. Riley & Company

Hi. Just in terms of some of the new projects starts that you're seeing, I wanted to get sense for if the new engagements are coming in, kind of as you expect them to or if you're still seeing higher than the normal level of delays or push outs? And then also for these new engagements that are coming on line, how does the size compared to what you've been seeing say in the past quarter or two?

Adam Gutstein

Kevin, in terms of overall environment, it's still a difficult environment and perhaps better said it's a dynamic environment. We are seeing a good deal of new starts. We added 17 new clients in our fourth quarter, which is very positive, one of the highest in recent memories. The percent of revenue that came from new clients was roughly somewhere between two and three times higher that of the prior quarter. So, that felt pretty good as well.

So, we're definitely seeing new starts and that's a good thing. On the other hand, you know as well as I do that growth is still slow, that it's still declining. And you know that unemployment although last this week's job disclaims were smaller, in the aggregate is still high. And so when we face a environment that has those kinds of factors weighing on it, it's still gives us some concern and you still see decision making that's very methodical, that takes a great deal with time, requires multiple people to approve a project, and just generally speaking a lot of caution. But I will tell you we're encouraged by the new clients, the new project starts, and overall we feel pretty good about things.

Kevin Liu - B. Riley & Company

And then in terms of your existing customers base, you mentioned that the average situation is going to climb to about three years there. Are you expecting any material changes in kind of the composition of your top five revenue generators? And then, also along those lines just what type of follow-on opportunities are you getting with clients you won in the past few quarters?

 

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