LECG (NASDAQ: XPRT) is a consulting firm that provides specialized services such as expert witness testimony, economic, financial and statistical analyses, and litigation support. LECG completed its IPO in November 2003. Since its IPO, demand for the company's services has grown rapidly due to Sarbanes-Oxley, which restricts public accounting firms from providing their clients with consulting services. From 2003 to 2006 the company's revenue grew at a CAGR of nearly 30%. ^[1]

Despite this impressive revenue growth, poor management of consultant compensation and intense competition have shrunk operating margins from over 13% in 2002 to under 10% in 2006. ^[2] In response to investor demands for change the company has initiated restructuring plan to reduce operating costs.

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