United Education Reports $5-Million Loss in Quarter

United Education & Software, an Encino-based trade school operator, reported a net loss of $5 million for the fiscal second quarter that ended July 31, contrasted with $1.2 million in net income a year earlier. Revenue declined 13% to $17.5 million from $20.1 million.

Aaron Cohen, president and chief executive officer of UES, said the poor results were due to operating losses and reserves set aside for legal expenses. The company has been named in a lawsuit stemming from a foul-up at its former student loan processing business. Cohen also blamed the firm’s loss in part to low unemployment rates and a resulting slowdown in enrollment at its trade schools.

For the six months that ended in July, UES lost $4.9 million, contrasted with earnings of $2.3 million a year earlier. Revenue was $38.1 million, down 10% from $42.3 million.