Santa Ana-based colleges operator Corinthian Colleges Inc. came out with delayed earnings for the September quarter, reporting lower net income and revising downward its profit outlook for the current quarter.
A probe into stock options grants at Corinthian, which runs vocational schools, delayed the results, originally due Nov. 1.
The look into options is nearly done, the company said. It expects to “finalize the accounting treatment” for improperly dated options grants soon, Corinthian said.
The latest results don’t exclude any options accounting.
Net income in the quarter fell 81% from a year earlier to $1.4 million. Revenue was off 2% to $232 million.
Corinthian saw the number of students enrolled at its schools fall nearly 2% during the quarter to 67,143. The number of students who signed up to start classes fell 1.3% to 26,402.
The start of a program to boost enrollment led to an initial drop in enrollment, according to Corinthian.
“We believe this initiative will help improve the overall student enrollment experience and increase growth over time,” said Jack Massimino, Corinthian’s chief executive.
For the current quarter, Corinthian said it sees profits of $7.9 million to $9.6 million, below Wall Street’s expected $10.5 million.
