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On Feb 4, 2009,
Corporate Executive Board
reported that it swung to a net loss in Q4 FY08, hurt by inclusion of $23.25 million impairment loss and $8.01 million restructuring cost. Net loss stood at $2.53 million or $0.07 per share compared to a net income $22.50 million or $0.63 per share in Q4 FY07. Excluding special items, earnings were $0.50 per share, which missed the most recent consensus estimate of $0.57 per share.
Revenue declined 3.8% to $136.75 million from $142.21 million a year ago, reflecting weak market conditions. Total contract value at the end of the quarter decreased 7.5% to $487.11 million from $526.39 million, while average subscription price declined 4.6% to $30,714 from $32,196. Member institutions rose to 5,114 from 4,711, while total membership subscriptions slipped to 15,747 from 16,349. Client renewal rate deteriorated 600 basis points to 84.00 % from 90.00%.
Gross profit margin improved 144 basis points to 69.41% from 67.97%, as a result of 8.2% decline in cost of services to $41.83 million. Recently, Corporate Executive Board declared a quarterly dividend of $0.44 per share for Q1 FY09 payable on March 31, 2009.
During FY08, net income decreased 37.0% to $50.79 million or $1.48 per share from $80.59 million or $2.17 per share in FY07. Excluding items, earnings per share were $2.05. Annual revenue grew 4.8% to $558.35 million from $532.72 million in the prior year.
Looking ahead to FY09, Corporate Executive expects earnings in a range of $1.30 per share to $1.60 per share on revenue between $445.00 million to $475.00 million.
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