Orange County Business Journal

Leon Panetta Rejoins Corinthian Board

Jane Yu Tuesday, April 30, 2013

Leon Panetta, the former U.S. secretary of defense and head of the CIA, has been named to the board of directors of Corinthian Colleges Inc. in Santa Ana.

It’s a return to the Corinthian boardroom for Panetta, who served as a director of the for-profit educator from 2008 to 2009.

Panetta, 74, recently ended a tenure as defense secretary in the Obama administration. He was the CIA’s director from 2009 to 2011.

Panetta is a one-time U.S. congressman who also served as chief of staff and director of the Office of Management and Budget under President Bill Clinton in the mid-1990s.

The announcement of Panetta’s appointment as a director came as Corinthian reported that it missed estimates on revenue and net income for the March quarter. Shares of the company’s stock fell about 4% during midday trading.

The company had $400.2 million in revenue for the quarter ended March 31, down 2% from a year earlier. Analysts had expected $406.2 million.

It saw a net loss of $1 million versus a year-earlier profit of $4.1 million. Analysts had expected net income of about $4.4 million.

Corinthian’s 113 campuses, which are in the U.S. and Canada, counted a total of 87,776 students at the end of March, a 6% drop from a year ago.

New student enrollment dropped 6% year over year to 26,738.

Corinthian said it expects current-quarter revenue to reach between $378 million and $388 million. It projected it would earn between $2.6 million and $4.4 million for the period.