Learning Tree Sees Loss

Learning Tree(LTRE Quote) pegged fourth-quarter revenue at $36.5 million, down about 2% from a year ago, and said it expects to report a loss from operations in the period.

For the fourth quarter ended Sept. 30, Learning Tree expects to report a loss from operations of $400,000 to $600,000. For the year, the loss from operations will be $1 million to $1.2 million, it said.

The company said full-year results were hurt by non-recurring lease expenses of about $800,000 relating to the subleasing of space in its U.K. Education Center, and by $1.7 million of external costs relating to its Sarbanes-Oxley compliance program, "the cost of which is expected to be substantially less in future years."

"While we are not satisfied with either our revenues or our profitability, we believe that we have significant opportunities to improve our profitability and are focusing substantial effort in this regard," the company said.

The company, which sells technology education, also reiterated that it must restate financial results going back to 2001 to reclassify and adjust entries related to income tax, lease improvements, and other expenses.

The stock closed at $13.99 Thursday night.

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