Key Developments For LECG Corporation
LECG Corporation (XPRT.O) (Nasdaq)
LECG Corporation Announces Proposed Merger With SMART
LECG Corporation announced it has entered into definitive agreements to merge with SMART Business Advisory & Consulting, LLC (SMART), a privately held provider of business advisory services, and to receive a $25 million cash investment from SMART's majority shareholder, Great Hill Partners. Under the agreements, LECG will issue approximately 10.9 million shares of common stock having a value of $39.9 million to acquire all of SMART's outstanding shares, and LECG will issue approximately 6.3 million shares of a newly created Series A Convertible Redeemable Preferred Stock at a purchase price of $3.96 per share in exchange for a $25 million cash investment in the combined company. Steve Samek, Chief Executive Officer of SMART, will become CEO of the combined company and a member of the Board of Directors upon completion of the merger, replacing Michael Jeffery.
LECG Corporation CEO to Step Down
LECG Corporation announced that its Cheif Executive Officer (CEO), Michael Jeffery, has notified the Company of his intention to step down as CEO of LECG, effective at the annual meeting of stockholders.
LECG Corporation Issues Q4 2008 Guidance Below Analysts' Estimates; Announces Restructuring Measures
LECG Corporation announced that for fourth quarter of 2008, it expects revenue of approximately $70 million and a loss of $0.21-0.23 per share (EPS), excluding anticipated restructuring, divestiture and impairment charges. According to Reuters Estimates, analysts were expecting the Company to report revenues of $88.80 million and EPS of $0.09 for fourth quarter of 2008. The Company also announced that it has undertaken a number of restructuring activities that will result in a pre-tax charge of approximately $10 million in the fourth quarter of 2008. These include a workforce reduction of 72 employees, the closure of two offices, and the divestiture of its finance and accounting services operations in Milan, Italy. The Company also expects to recognize pre-tax goodwill and other asset impairment charges of between $90-110 million in the quarter. The restructuring charges will consist primarily of separation payments related to the reduction in billable professionals and administrative staff and a pre-tax write-off of $2 million for unamortized signing bonuses. The Company estimates that these actions will result in future annual pre-tax cost savings of approximately $10 million per year.
LECG Corporation Reiterates Long Term Guidance-Conference Call
LECG Corporation reiterated its longer term guidance of revenue growth in the 8% to 12% range and earnings per share (EPS) growth exceeding revenue growth.
LECG Corporation Revises FY 2008 Revenue Guidance; Lowers H2 2008 Earnings Guidance
LECG Corporation revised fiscal 2008 guidance and expects revenues will still be slightly above its first half of the year revenues. For second half of 2008, it expects earnings to be modestly below its first half earnings as the team integrates and ramps up its revenues and profit contributions. According to Reuters Estimates, analysts were expecting the Company to report revenues of $357 million for fiscal 2008; EPS of $0.10 for third quarter of 2008; EPS of $0.11 for fourth quarter of 2008.
