UPDATE 1-K12 Q1 trails Wall Street; sees strong FY revenue
* Q1 EPS $0.07 vs est $0.29
* Revenue $134.9 mln vs est $137.1 mln
* Expects fiscal 2011 sales to exceed $500 mln
Nov 9 (Reuters) - Technology-based education company K12 Inc (LRN.N) posted first-quarter results that missed Street expectations, partly hurt by an increase in expenses, but it forecast full-year sales above market estimates.
The company, which provides virtual education from kindergarten through 12th grade, sees full-year revenue of more than $500 million, excluding the acquisition of American Education Corp. [ID:nASA010Z0]
Analysts were expecting K12 to post revenue of $491.6 million, according to Thomson Reuters I/B/E/S.
For July-September, the company reported net income of $2.2 million, or 7 cents a share, compared with $7.1 million, or 24 cents a share, a year ago.
Revenue rose 27 percent to $134.9 million. Total expenses rose 38 percent to $129.5 million.
Analysts were expecting the company to earn 29 cents a share, before special items, on revenue of $137.1 million.
Earlier this month K12, which has a market value of about $865 million, agreed to acquire American Education, a provider of research-based core curriculum instructional software. [ID:nASA00YF7]
K12 offers virtual public schools its curriculum, online learning platform and levels of academic and management services, ranging from targeted programs to turnkey solutions.
Shares of the Herndon, Virginia-based company closed at $28.16 on Monday on the New York Stock Exchange. They are down 5 percent from a year-high of $29.71 in September. (Reporting by Fareha Khan in Bangalore; Editing by Anne Pallivathuckal)