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Part I - Financial Information
	Item 1.	Consolidated Financial Statements
		Consolidated Balance Sheets			1
		Consolidated Statements of Income			2
		Consolidated Statement of Stockholders’ Equity			3
		Consolidated Statements of Cash Flows			4
		Notes to Consolidated Financial Statements			5 - 8
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations			9 - 17
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk			17
	Item 4.	Controls and Procedures			17
Part II - Other Information
	Item 1.	Legal Proceedings			18
	Item 2.	Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities			18
	Item 3.	Defaults Upon Senior Securities			18
	Item 4.	Submission of Matters to a Vote of Security Holders			18
	Item 5.	Other Information			18
	Item 6.	Exhibits			18
Signature					19

 

 

 

		March 31, 2005 (Unaudited)			December 31, 2004 (Audited)
Assets
Current assets:
Cash and cash equivalents		$	20,599		$	28,092
Receivables from clients, net			22,914			21,750
Unbilled services, net			15,083			10,830
Income tax receivable			¾			494
Deferred income taxes			9,234			7,919
Other current assets			3,388			3,053
Total current assets			71,218			72,138
Property and equipment, net			9,121			8,975
Other assets:
Deferred income taxes			1,805			1,450
Deposits			641			656
Total other assets			2,446			2,106
Total assets		$	82,785		$	83,219
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	2,637		$	2,809
Accrued expenses			2,475			2,384
Accrued payroll and related benefits			10,684			20,494
Income tax payable			4,406			950
Deferred revenue			2,195			2,603
Total current liabilities			22,397			29,240
Non-current liabilities:
Accrued expenses			514			598
Deferred lease incentives			4,279			4,148
Total non-current liabilities			4,793			4,746
Commitments and contingencies
Stockholders’ equity
Common stock; $0.01 par value; 500,000,000 shares authorized; 16,886,053 shares issued at March 31, 2005 (unaudited) and 16,364,574 shares issued and outstanding at December 31, 2004			169			164
Treasury stock, 15,200 shares at March 31, 2005, at cost			(236	)		¾
Additional paid-in capital			70,532			59,608
Deferred stock-based compensation			(21,439	)		(12,281	)
Retained earnings			6,569			1,742
Total stockholders’ equity			55,595			49,233
Total liabilities and stockholders equity		$	82,785		$	83,219

 

 

 

		Three months ended March 31,
		2005			2004
Revenues and reimbursable expenses:
Revenues		$	46,760		$	40,101
Reimbursable expenses			4,370			3,443
Total revenues and reimbursable expenses			51,130			43,544
Direct costs and reimbursable expenses:
Direct costs			24,945			24,856
Stock-based compensation			999			12
Reimbursable expenses			4,387			3,523
Total direct costs and reimbursable expenses			30,331			28,391
Gross profit			20,799			15,153
Operating expenses:
Selling, general and administrative			11,312			8,156
Stock-based compensation			411			2
Depreciation			847			603
Restructuring charges			¾			2,139
Total operating expenses			12,570			10,900
Operating income			8,229