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O.C. BUSINESS PLUS | ORANGE COUNTY BRIEFLY

New Horizons Issues Earnings Warning

September 27, 2000|Dow Jones

New Horizons Worldwide Inc., Santa Ana provider of computer training, warned Tuesday that it expects lower third-quarter earnings as revenue in Southern California, its largest market, fell below expectations.

The company said it restructured the Southern California business and made management changes "to accelerate profitability" in the region.

New Horizons estimated third-quarter earnings of $2.5 million to $2.8 million, or 24 cents to 26 cents a share, compared with net income of $3 million, or 30 cents a share, for the same period last year. Revenue is expected to total $35 million to $36 million, up from $30.6 million.

Systemwide revenue, which includes company-owned and franchised training centers, should range from $134 million to $136 million, compared with $113.3 million a year ago, the company said.

New Horizons said its franchised business experienced "excellent growth," with sales up about 16% at franchise centers that have been open at least a year.

For the fourth quarter, the company expects revenue to grow 12% to 15%, and it expects net income to be comparable to year-ago results.

The financial projection was released after the close of U.S. markets. The stock moved up $1.38 a share to $23.38 in Nasdaq trading.

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