* Second-quarter revenue $679.1 million vs. est $689 million
* Revenue per student falls 5.6 pct
* Shares fall 9 pct in aftermarket trading
(Adds CFO comment, details, background, shares)
April 1 Apollo Education Group reported
lower-than-expected quarterly revenue as enrollments declined
16.8 percent at its flagship University of Phoenix, sending its
shares down more than 9 percent in extended trading.
The company also said it had received a subpoena from the
U.S. Department of Education's Office of Inspector General,
seeking information about the operations of the Northeast region
of the University of Phoenix. (r.reuters.com/huj28v)
Apollo said it expected to end fiscal 2014 with about
230,000 students at the University of Phoenix, Chief Financial
Officer Brian Swartz said on a conference call.
The university ended the second quarter ended Feb. 28 with
about 250,300 students and contributed 87 percent of the
Apollo, which took a beating from the U.S. government's
investigations in 2010 that showed high debt levels and low
graduation rates, said new enrollments fell 16.5 percent.
Revenue per student fell 5.6 percent, Swartz said.
Apollo had announced a number of scholarships and fee
reductions at its universities last year to stem dropouts.
The government has proposed regulations that could force
for-profit colleges to revise course structures or risk losing
aid if 30 percent or more students default on their loans.
Net income attributable to Apollo Education rose to $14.6
million, or 13 cents per share, for the second quarter from
$13.5 million, or 12 cents per share, a year earlier.
Excluding items, the company earned 28 cents per share.
Revenue fell 18.6 percent to $679.1 million, missing the
average analyst estimate of $689 million, according to Thomson
Apollo also reiterated its full-year revenue forecast of
$3.00 billion-$3.10 billion.
Apollo's shares closed at $35.16 on the Nasdaq.
(Additional reporting by Sagarika Jaisinghani in Bangalore;
Editing by Don Sebastian)