Scholastic reports loss in Q3 due to lower educational technology sales
The children’s and educational technology publisher Scholastic reported Q3 earnings today. Revenue was essentially flat – $373.5 million, compared to $378.6 million a year ago – but income was a loss of $34.3 million, compared to a loss of $27.4 million one year ago.
“After a very strong first half, our education business was impacted in the third quarter by the combination of our educational technology and classroom and supplemental materials sales forces,” Richard Robinson, Chairman, President and Chief Executive Officer, said. “The sales force integration is now largely complete and our team is fully focused on driving profitable sales in the fourth quarter and into the first quarter of next fiscal year.”
“In our children’s book business, we had a solid third quarter, driven by higher revenues in our school book clubs and book fairs, as well as by popular new trade releases. We are noticing a broad trend of teachers incorporating more independent reading for pleasure into the classroom, which helps children develop higher level thinking skills while also providing an important balance to the complex informational texts required by new, rigorous standards. We are responding to this growing need with our robust line-up of appealing titles and classroom book sets,” Robinson said in the statement on earnings released this morning.
In Q3 of the company’s 2014 fiscal year, the Children’s Book Publishing division saw revenue climb 1 percent to $190.0 million. The Educational Technology division, though, saw its revenue decline 14 percent to $35.8 million. Classroom and Supplemental Materials Publishing revenue was up slight to $44.5 million compared to $43.2 million a year ago. International revenue was down 4 percent to $91 million versus $94.4 million a year ago.