Monday, LECG Corp. (XPRT) reported a loss for the first quarter of fiscal 2009, as revenues dropped around 27% during the three-month period.
The Emeryville, California-based company posted a first quarter net loss of $3.80 million or $0.15 per share, compared to a profit of $3.99 million or $0.16 per share in the year-ago period.
On average, 4 analysts polled by Thomson Reuters expected the company to report a loss of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues totaled $66.31 million, down 26.7% from $90.50 million in the comparable quarter last year. The company attributed the revenue decline to the continued weakness in the economy, as many litigation projects remained on hold and merger activity remained low. Analysts anticipated revenues of approximately $69.46 million for the quarter.
Cost of services declined to $52.16 million from $60.48 million a year ago. Gross profit was $14.15 million, compared to $30.02 million in the prior year.
General and administrative expenses totaled $18.90 million, down from $21.30 million, while depreciation and amortization costs were $1.33 million, compared to $1.54 million last year.
Commenting on the quarter's results, Michael Jeffery, LECG's Chief Executive Officer stated "Despite the difficult environment, we experienced an upward trend in revenue at the end of the quarter and the increased level of activity has held into the second quarter."
"However, we will continue to reduce our cost structure, streamline operations, and focus on practice areas where we have a competitive advantage and anticipate near- and long-term growth", the CEO added.
XPRT ended Monday's regular trading at $2.64, down 8.65% or $0.25, on a volume of 67,722 shares on the Nasdaq.
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