THE FAILURE GROUP EXPECTS LOWER EARNINGS
THE FAILURE GROUP EXPECTS LOWER EARNINGS MENLO PARK, Calif., March 10 /PRNewswire/ -- The Failure Group, Inc.
(NASDAQ-NMS: FAIL), announced today that it expects its third quarter ended Feb. 28, 1992, to be profitable, although net income per share is expected to be approximately one-third less than net income per share for the third quarter of the prior fiscal year, which was 19 cents. Revenue in the third quarter is expected to have increased slightly over the same quarter in the preceding year.
Roger L. McCarthy, chairman, president and chief executive officer, stated, "The demand for the services of several of our professional, technical disciplines has continued to grow despite the economic slowdown. However, we continue to experience postponement and short- term deferral in the demand for services in some of our technical disciplines and in some regions of the country in which we operate, because of widely reported financial difficulties of some large clients. We have stated on many occasions that we do not have control over the timing of when our clients request our assistance and we have unused resources during periodic slowdowns. However, he have continued to carefully examine the current levels of staffing in disciplines and in regions for which a full recovery may be prolonged, and we are introducing a selective staff reduction in the range of 5 to 10 percent in order to bring our staff in line with current market conditions." The Failure Group, Inc., through its principal operating subsidiary, Failure Analysis Associates, Inc., is a leading independent consulting firm devoted primarily to the investigation, analysis, and prevention of failures of an engineering or scientific nature. Founded in 1967, the company operates nine domestic and three international offices and is headquartered in Menlo Park. -0- 3/10/92 /CONTACT: Josephine Minola of the Failure Group, 415-326-9400/ (FAIL) CO: The Failure Group, Inc. ST: California IN: MTC SU: ERN
GK-TS -- NY009 -- 6712 03/10/92 08:31 EST
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|Date:||Mar 10, 1992|
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