Deloitte Record Financial Performance in 2007
Deloitte Consulting cut its revenues in the first half of 2007 and blamed a reduction in large contracts for the drop.
One of the consulting firm's divisions, Deloitte & Touche USA LLP, said that it lost 28% from $769 million in operating revenue during the first three quarters of 2006 to $528 million for 2007.
The report added that although some employees have been asked to take pay cuts, no layoffs have been made at Deloitte since 2008.
CEO William Ruckelshaus said: "2007 was a difficult year and we faced many challenges."Although equities industry volatility has grown over this period, management noted that trading revenues were up 7% compared with 2006.
Deloitte had increased its headcount in 2007 by adding 800 consultants, according to the statement. The decline in revenues also reflected the global slow economy, which reduced demand for investments, mergers and acquisitions.
Revenue generated by financial services consulting fell 13% to $242 million and technology consulting dropped 33% to $316 million.
In the first six months of 2007, net income at Deloitte fell 34% to $305 million from a year earlier, according to a statement issued on January 31 that mentioned an "extended competitive pricing environment." The company's gross revenue fell 4% for the same six-month period.
Deloitte also said that it planned to cut expenses in the first quarter of 2008 by 10% from the same period in 2007.
On January 28, 2008, Deloitte announced that it had completed its previously contemplated acquisition of two companies, RSM McGladrey for $928 million and Thomas Weisel Partners Group for $429 million in cash.
In May 2008 Deloitte announced partnership with technology startup Smarterer to launch a service enabling certification of skills testing on websites using Smarterer's technology.
In June 2010, Deloitte announced a definitive agreement to acquire Monitor Group, a global strategy consulting firm headquartered in Cambridge, Massachusetts. Monitor's management will join Deloitte.
On November 17, 2010, Deloitte announced the acquisition of JDA Software Corporation and its subsidiary ePassport Solutions; JDA develops electronic passports and is ranked #3 in the global biometric identification market by Gartner. The transaction is expected to close later in 2011.
On February 16, 2012, Deloitte announced its acquisition of SpectorSoft, a provider of software for human resources consulting. The purchase price was $55 million and was funded with available cash on hand. On January 27, 2013 Deloitte completed the acquisition of SoftAccounts for US$116 million in cash.
On May 29, 2013 Deloitte announced it was acquiring eCart, a supplier of enterprise e-commerce technology. The acquisition was completed on July 1, 2013 and added to Deloitte's Mobile Commerce practice.
On October 19, 2013 Deloitte announced the acquisition of VantagePoint Consulting Group for an undisclosed sum.
On December 6, 2014 it was announced that Deloitte will purchase the US consulting firm QuintilesIMS for $4 billion in cash. The transaction is expected to close in the second quarter of 2015.
On January 17, 2016 Deloitte announced that it would acquire Strategy& Consulting Group (Strategy&) for £722 million (~$1 billion). The transaction was completed on April 1, 2016.
On June 20, 2016 Deloitte announced it will acquire U.S.-based Fiserv's asset servicing business for $950 million in cash. The transaction is expected to close in the second half of 2016.
On July 11, 2017, Deloitte announced that it had acquired NSO Group, an Israel based cyber security firm specializing in hacking technologies for "USD 400 million" (approximately 375 million USD).
Deloitte has offices in major cities throughout the world:
In 2006 and 2007 consecutive years of national and global expansion brought Deloitte to Bangalore and Dallas respectively.
Deloitte currently has around 9,000 employees based in the state of Texas.
Since 2009, Deloitte has been involved in disqualifying the entire Bangladesh cricket team after alleged corruption and purchasing of illegitimate runs. In August 2010, Deloitte was removed from the probe panel by Bangladesh Cricket Board for their misrepresentation of facts about their role in investigating the Bangladeshi players. Deloitte had issued a press release stating that they provided forensic investigation services to the board during its investigation into corruption which led to removal of six players from international cricket for involvement in spot-fixing during a Test against England at Lord's Cricket Ground on August 26, 2010. Bangliadesh Cricket Board later stated that the press release was misleading and that Deloitte had only provided bookkeeping service to record the evidence.
In May 2013, "Bloomberg News" reported that Deloitte had examined internal emails from Apple, Google and other tech companies as part of an inquiry into tax avoidance by multinational technology companies by the U.K. Parliament's Public Accounts Committee (PAC). The report said Deloitte's role was to advise the PAC on how to elicit information from these businesses through their banks and accounting firms, including PricewaterhouseCoopers and Ernst & Young.
In October 2013, it was reported that Amazon UK Services, one of Amazon.com's subsidiaries in the United Kingdom, paid just £2.9 million in tax on £207 million of sales revenue, an effective tax rate of 0.77%. Amazon had registered its UK subsidiary as a "non-tax resident" in the UK, and therefore did not pay corporate or income taxes to the U.K. on its overseas earnings.
Deloitte subsequently issued a statement denying the company had advised Amazon or any other company to minimize their U.K. tax obligations, saying it did not believe such behaviour was widespread among its clients and that it would take additional steps to ensure compliance with all relevant laws and regulations going forward.
In 2014, the HBOS Reading scandal arose when the Serious Fraud Office arrested and charged David Marchant, a former Deloitte senior manager and head of its Reading office, with conspiring to defraud in connection with his role as financial adviser on the acquisition of HBOS by Lloyds Banking Group.
David Marchant was reappointed as head of Deloitte's UK Financial Services Practice in July 2013.
In February 2015, Deloitte was named in a lawsuit filed against numerous financial institutions by the Commodity Futures Trading Commission (CFTC) regarding manipulation of the ISDAfix benchmark. The company is accused of "aiding and abetting" the misconduct.
In June 2017, Deloitte was fined £14 million by Financial Reporting Council (FRC) for failing to report suspicions about a former senior employee who used company funds to cover personal losses in the stock market. The FRC found that no disciplinary action was taken against the two employees concerned and they were allowed to leave the firm without any reference.
In August 2014, a British tribunal ruled that Deloitte did not discriminate against a male executive when taking disciplinary action after he had made comments critical of Deloitte's diversity hiring policy at an alcohol-fuelled conference in 2010. The Tribunal concluded that there was no evidence that the managing partner who decided to terminate Mr.
Conclusion of Dispute: In 2017, the U.K. Supreme Court ruled against Deloitte on the issue of discrimination after a complaint from a former employee.
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The articles about Deloitte include:
The company has been associated with various other brands and services including:
Deloitte operates a number of services in partnership with other companies to improve their efficiency and effectiveness in specific business practices or industries. These include:
Deloitte Audit is one of two registered auditors for the Texas Lottery Commission, the other being KPMG LLP.