Answerthink (NASDAQ:ANSR)
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Answerthink, Inc. (NASDAQ: ANSR) commented today on its $8.2 million
investment in Bank of America’s Strategic Cash
Portfolio (the “Fund”).
On Friday, December 7, 2007, the Fund was closed to new investors, and
on Monday, December 10, 2007, Bank of America informed Answerthink that
the Fund would be liquidated.
Given Answerthink’s substantial available cash
balances which totaled over $25 million as of the end of its last fiscal
quarter, Answerthink does not believe that the Fund’s
liquidation plans will have any material impact on its operating plans.
Answerthink currrently estimates its year-end cash balances, excluding
its investment in the Fund, to be in the range of $15-20 million.
Answerthink has been an investor in the Fund since 2003, using it as one
of its various AAA-rated money market oriented investment alternatives.
Bank of America informed Answerthink that it expects to liquidate
approximately 90% of the Fund in the first six months of 2008, with the
balance to be liquidated by the end of 2008 or early 2009. Bank of
America has given Answerthink the option of maintaining its investment
while the Fund is liquidated or taking a like-kind distribution of the
underlying assets of the Fund. The Company currently believes that
keeping the underlying assets with Bank of America will optimize the
value of its investment.
Based on the latest information received from Bank of America, each
share in the Fund is valued at $.99 of par value with par value
representing $1.00. At this valuation, Answerthink’s
investment in the Fund has experienced an unrealized investment loss of
approximately $80,000. Answerthink believes that this valuation is
benefiting from a reported cash infusion by Bank of America.
The Company is closely monitoring the value of the underlying assets in
the Fund, and will continue to evaluate the status and value of its
investment in the Fund until the Fund assets are fully liquidated.
About Answerthink
Answerthink, Inc. (www.answerthink.com)
is a leading business and technology consulting firm that enables
companies to achieve world-class business performance. By leveraging the
comprehensive database of The Hackett Group, Answerthink's business and
technology solutions help clients significantly improve performance and
maximize returns on technology investments. Answerthink's capabilities
include benchmarking, business transformation, business applications,
business intelligence, and offshore application development and support.
Founded in 1997, Answerthink has offices throughout the United States
and in Europe and India.
This press release contains “forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and involve known and unknown risks, uncertainties
and other factors that may cause Answerthink's actual results,
performance or achievements to be materially different from the results,
performance or achievements expressed or implied by the forward-looking
statements. Factors that impact such forward-looking statements include,
among others, the ultimate amount of our unrealized investment loss, the
ability of Bank of America to liquidate the Fund, the ultimate per share
value of the Fund, the timing and amount of the proceeds distributed to
us from the Fund, the availability of other cash and cash equivalents to
meet our liquidity and operating needs our ability to generate
sufficient cash flow to meet cash balance estimates, the ability of the
products, services, or practices mentioned in this release to deliver
the desired effect, our ability to effectively integrate acquisitions
into our operations, our ability to attract additional business, our
ability to effectively market and sell our product offerings and
other services, the timing of projects and the potential for contract
cancellations by our customers, changes in expectations regarding the
information technology industry, our ability to attract and retain
skilled employees, possible changes in collections of accounts
receivable, risks of competition, price and margin trends, foreign
currency fluctuations, changes in general economic conditions and
interest rates as well as other risks detailed in the Company's Annual
Report on Form 10-K for the fiscal year ended December 29, 2006 filed
with the Securities and Exchange Commission. We undertake no obligation
to update or revise publicly any forward-looking statements, whether as
a result of new information, future events or otherwise, except as
required by law.