Perik's target profit margin is the same for the assessment business as for test prep, 20% after tax. (Test prep accounts for 70% of the company's revenues, K--12 the rest.) His risky strategy: Instead of emphasizing customized assessment tests for particular school districts, he plans to deliver a more generic product.

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For the full year, the company cut its capital spending and research and development budgets and gross margin target.

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French carmaker Peugeot is up 8.7%, in Paris after reiterating its 2008 operating margin target, when many people had expected it to be lower.

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