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CLC shares take a hit
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August 28, 1998: 12:19 p.m. ET
Stock tumbles more than 55 % after company issues earnings warning
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NEW YORK (CNNfn) - Shares of Computer Learning Centers Inc. fell more than 55 percent Friday morning after the company unveiled a bleak earnings picture the previous day.
Fairfax, Va.-based CLC said it expects second-quarter earnings of 4 to 5 cents per diluted share, down significantly from 12 cents a year earlier. First Call had estimated profits of 13 cents a share.
The company blamed its weakened financial state on legal costs related to a suit by the attorney general of Illinois.
The company paid more than $500,000 in June to settle the suit, which alleged the company violated consumer protection laws. The attorney general claimed CLC made unrealistic promises of high earning potential and great job placement to entice students into paying up to $13,000 in tuition.
The company, which provides computer-related education and training, also reported a drop in enrollment, related in part to negative publicity from the Illinois lawsuit.
Same-center enrollments decreased by more than 16 percent from to 3,037 from 2,539 a year ago.
At midday, shares of CLC (CLCX) tumbled 7-11/16 points to 5-11/16 on the Nasdaq. 
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