Monster Q1: Lower Profit Due To Restructuring, Stock Option Investigation

Monster Worldwide (MNST) reported strong Q1 revenue but profits were hit by restructuring costs and expenses related to its (still!) ongoing stock option investigation. Shares closed up 5% to $25.56 after the results were inadvertently posted on Yahoo Finance before the closing bell.

Former CEO James J. Treacy became the third Monster exec to be charged with backdating stock options on Wednesday. Treacy, who left the company in 2002, is accused by federal prosecutors of benefiting improperly from$13.5 million of the $23 million he made exercising options in Monster stock. Treacy and ex-controller Anthony Bonica are also facing civil charges filed by the SEC.

Former Monster general counsel Myron Olesnyckyj pleaded guilty to backdating charges in March 2007; former chief executive Andrew McKelvey was also charged but the government agreed to defer prosecuting him due to poor health.

Q1 2008
Revenue: $370 million, up 13% y/y
Street estimate: $363 million

EPS (non-GAAP): $0.24, beating the street estimate: $0.22

Net Profit: $23 million, compared to $40 million last year.

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