NU Online News Service, July 29, 2004, 5:12 p.m. EDT

The new federal financial reporting rules took a bite out of profits at Clark Inc., Barrington, Ill., during the second quarter.[@@]

The benefits consulting firm is reporting $1.7 million in net income for the latest quarter on $71 million in revenue, compared with $2 million in net income on $77 million in revenue for the second quarter of 2003.

At the firm’s executive benefits practice, renewal revenue fell to $8.1 million, from $9.9 million, but first-year revenue increased to $4.6 million, from $4.3 million.

Clark points out that complying with the Sarbanes-Oxley Act of 2002, the law that requires public company managers to work with auditors to verify the integrity of their financial controls, cost it $650,000. SOX compliance ate up 0.9% of Clark’s revenue during the second quarter.