THE FAILURE GROUP INC. ANNOUNCES FIRST QUARTER RESULTS
THE FAILURE GROUP INC. ANNOUNCES FIRST QUARTER RESULTS MENLO PARK, Calif., Sept. 25 /PRNewswire/ -- The Failure Group Inc.
(NASDAQ: FAIL) today reported total revenues of $16.5 million, including professional fees of $14.2 million, for the first quarter ended Aug. 28, 1992. This represents decreases of 3.8 percent and 4.3 percent, respectively, compared with total revenues of $17.2 million, and professional fees of $14.8 million, for the comparable quarter in the preceding year. Net income for the quarter increased 8.7 percent to $873,000, or 11 cents per share, compared to net income and net income per share for the first quarter last year of $803,000 and 10 cents, respectively.
Dr. Roger L. McCarthy, chairman, president and chief executive officer, observed that, "The demand for professional services in certain of our core businesses and in some key industries remains depressed. Our efforts to control operating expenses have been effective, and we are heartened that operating expenses for the recent quarter are lower than those in the same quarter of the prior year. We continue to carefully evaluate the current levels of staffing in disciplines for which a full recovery may be prolonged, and we are reducing our staff by approximately 5 percent to bring staffing into line with existing market conditions. Expenses related to the elimination of these staff positions are approximately $175,000 and have been included in the operating results of the recently completed quarter." The Failure Group Inc., through its principal operating subsidiary Failure Analysis Associates Inc., is the leading independent engineering firm devoted primarily to the investigation, analysis and prevention of failures of an engineering or scientific nature. Failure Analysis Associates was founded in 1967 and operates nine domestic and four international offices. The company's headquarters are located in Menlo Park. The Failure Group Inc. Operations Summary (in thousands, except per share data) 3 months ended Aug. 28, 1992 Aug. 30, 1991 Revenues $16,546 $17,198 Operating expenses 14,863 15,694 Operating income 1,683 1,504 Net income 873 803 Net income per share $0.11 $0.10 Weighted average common shares 7,940 8,030 -0- 9/25/92 /CONTACT: Josephine Minola, public relations assistant of The Failure Group, 415-326-9400/ (FAIL) CO: The Failure Group Inc.; Failure Analysis Associates Inc. ST: California IN: CPR SU: ERN
GT-LS -- SJ001 -- 3396 09/25/92 08:03 EDT
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|Date:||Sep 25, 1992|
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