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Tuesday, May 5, 2009

Corp Exec Bd (EXBD)beats by $0.15, beats on revs; lowers FY09 guidance, cuts dividend

The Company is decreasing its quarterly dividend from $0.44 per share to $0.10 per share, which will preserve approximately $46 million cash for the Company on an annualized basis. The Company will fund its dividend payments with cash on hand and cash generated from operations. The dividend is payable on June 30, 2009 to stockholders of record at the close of business on June 15, 2009. Mr. Monahan commented, “We remain committed to returning excess cash to shareholders while at the same time maintaining operating flexibility in these uncertain economic times.”

Corporate Executive Board Co (EXBD) posted a drop in quarterly profits hurt by a fall in the value of its contracts, slashed quarterly dividend and cut its outlook for 2009, sending its shares down as much as 10 percent in extended trading.

For 2009, the company expects to earn 90 cents a share to $1.40 a share. It had previously forecast earnings to range between $1.30 and $1.60 a share.

Revenue for 2009 is expected to be $410 million to $450 million, down from its previous forecast of $445 million to $475 million.

For the first quarter, the company posted earnings of $13.1 million, or 38 cents a share, compared with $14.8 million, or 42 cents a share.

Analysts were expecting earnings of 25 cents a share, excluding items, on revenue of $112.8 million, according to Reuters Estimates.

Shares of the company fell 10 percent to $15.98 in trading after the bell. They closed at $17.69 Monday on Nasdaq.

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