Huron Consulting Group Inc. (HURN)

[MWM]

HURN Huron Consulting on Conference Call (19.60 +0.81) -Update-

Notes revenues did not meet internal forecasts due to the accounting issues; says if you exclude that impact, organic growth was 'slightly positive in Q2'... continue to experience momentum seen in Q1; very pleased with Health & Education segment... says it is seeing some delay in certain assignments; says July did not end strong for them; says in the guidance discussed today it is taking a cautious view, particularly with accounting issues... legal consulting revs will be flat to modest growth; continued softness in accounting consulting make it difficult to predict if market will improve, low end of range assumes no growth in revenues from 1H... examining costs in all practices; says cost reductions will allow them to maintain operating margins; will allow them to compensate key personal...Have had open dialogue with banks; in full compliance with covenants; cautiously optimistic that it will have a resolution if there is a goodwill impairment charge... says only aware of one project that has been canceled due to controversy; several clients have requested further info, but in each instance work continued without interruption... co indicates on conf call that it has seen minimal fallout from customers as a result of accounting controversy & that no employees (including managing directors) have left co due to this issue...

Co says that it has not had one single employee leave the co due to the accounting issues... says have received support from clients... says have no issues any options since the date the accounting issues came public... says at a 3% rate for outstanding balances ($295 mln); have not gone back to the market in recent months... have not seen an appreciable difference in turnover rates... says have some idea of what legal fee it will incur but it is not perfect so not prepared to provide an exact number but it is incorporated into guidance... says significant amount of focus in terms of bonus accrual... not prepared to provide 2010 guidance yet... call has ended.