In a concerted effort to increase shareholders’ wealth, CRA International Inc. (CRAI), formerly Charles River Associates yesterday announced an increase in its share buyback authorization. The upward revision includes an addition of $5 million to the existing repurchase program. The existing program, approved by the board in June 2007, authorized the repurchase of up to 1.5 million shares, of which 159,818 shares are available for repurchase.

CRA International’s strong balance sheet has enabled management to return value to shareholders. As of May 14, 2010, the company had cash and cash equivalents and short-term investments of $80.0 million compared with $106.5 million as on November 28, 2009.
 
As of May 14, 2010, before the announcement of the new stock repurchases authorization, CRA International had 10.7 million shares of common stock outstanding.
 
Given the company’s solid reputation and quality of work, the company attempts to generate a high level of similar business from its existing relationships. We believe that the company’s business growth has the potential to rebound once the recovery of global economy gains momentum.
 
CRA International earns revenues primarily based on its utilization rate (the amount of time billed in relation to the amount of time worked) and is also taking restructuring initiatives to improve margins. However, clients’ cautious aggregate spending and a decline in organic revenues are expected to limit the company’s growth.
 
We maintain a Zacks #3 Rank on CRA International, which translates into a short-term Hold recommendation.
 
CRA International competes with a broad range of public and private consulting firms. The closest publicly traded peers to CRA International include FTI Consulting Inc. (FCN), Huron Consulting Group Inc. (HURN), LECG Corporation (XPRT) and Navigant Consulting Inc. (NCI).
 
Based in Boston, Massachusetts, CRA International provides legal, regulatory, business consulting and other expert services through its specialized consultants across the globe.

(We are reissuing this article to correct a mistake. The original article, issued earlier today, should no longer be relied upon.)
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