Third quarter profits of $2.9 million (£1.9 million) for the troubled Clonskeagh-based CBT Group, published yesterday, were down more than 40 per cent compared with the same period last year. Mr Bill McCabe, the former chairman and a member of the company's recently-appointed management committee, said he was "very disappointed" with the results.

The committee anticipates it will take "several quarters" for the company to return to "a path of growth and profitibility".

The results for the quarter to September 30th showed revenues of $35.2 million compared to $35.1 million during the same period in 1997 and net income (after-tax profit) of $2.9 million compared to $4.9 million for 1997. The revenue figures had been released last week because of the crisis caused by the collapse of the company's share price on the US-based Nasdaq market.

"As a result of the performance in the third-quarter numbers and following a review of the underlying reasons behind this performance, it is the view of the board and the members of the management committee that significant operating challenges must be met and overcome in order to restore CBT Group to a path of growth and profitability," Mr McCabe said.

"While the board believes that restoring the company to such a path is realistic and achievable, it is anticipated that this will take several quarters to bring about."

The latest class action filed against the company, by Schatz & Nobel, in California, is on behalf of all shareholders of a Texasbased company, Forefront, which was acquired by CBT in May by way of a share swap. The deal valued Forefront at $147 million. At the time CBT shares were worth about $50. They are now worth about $10.

According to Schatz & Nobel, under the provisions of the US Securities Act of 1933, persons who received CBT shares in the merger may recover money damages if material misrepresentations were made in the registration statement and prospectus, even if those misrepresentations were not made intentionally or recklessly.

A number of class actions are being taken alleging that directors sold CBT shares when the price was high, knowing that the health of the company was being misrepresented to shareholders. Persons who bought CBT shares between January 20th 1998 and September 30th 1998, are being invited to partake in the actions.

According to one law firm involved, Milbert Weiss, seven directors sold 77 per cent of their shareholdings in CBT during the class period. The firm claims that Mr Bill McCabe's sale during the period of CBT shares worth $7.7 million, constituted 86 per cent of his shareholding.

Other directors sold shares which constituted between 50 per cent and 100 per cent of their total holdings. Mr John Hayes, group financial controller, sold 100 per cent of his shareholding, valued at $171,959, in July, according to the company.

The shares register in Dublin shows that the vast bulk of the shares, as of September 30th last, were held by nominee companies.