Exult Asks SEC About Accounting Method

Shares of Exult Inc. lost more than half their value after the Irvine-based company said it will ask the Securities and Exchange Commission for information about an accounting method.

Exult, an operator of human resources departments for large companies, said it will ask the SEC whether it should start percentage of completion accounting, without describing the method.

The company said it is unable to estimate the effect of this accounting method on financial results. Spokesman Javier Mendoza said he had no further comment.

Exult shares fell to as low as $2.59 in extended trading. The stock had closed up 39 cents at $4.60 on Nasdaq.

Earlier in the day, Exult reported a second-quarter net loss of $4.5 million, or 4 cents a share, compared with a year-ago loss of $20.3 million, or 23 cents, on a 57% jump in revenue to $100.9 million.