Scholastic, in an announcement released earlier this morning, said that for the quarter ending February 28, the Company reported revenue of $497.0 million, up 2% from $487.7 million a year ago, and a seasonal net loss of $7.7 million, compared to a loss of $15.5 million in the prior year period. Net loss per share was $0.18 versus a loss of $0.37 a year ago. Results for the fiscal 2007 third quarter included a $3.0 million or $0.04 per diluted share gain on the sale of an investment. The fiscal third quarter is typically Scholastic’s second smallest revenue quarter.
“Results in the third quarter were generally positive. Strong sales in the core clubs and improved efficiencies sustained an impressive profit turnaround in School Book Clubs and drove higher margins in the Children’s Book Publishing and Distribution segment. Robust technology sales also improved results and margins in Educational Publishing. In addition, the Company’s cost reduction efforts remained on plan,” commented Richard Robinson, Chairman, CEO and President. “While customer acquisition through the Internet remained strong in Continuities, higher bad debt and promotion amortization hurt the quarter’s results and have caused us to reduce our outlook for the fourth quarter and full year.”