Scholastic reports Fiscal 2013 third quarter results

Scholastic
Mar 21, 2013
Earlier today, Scholastic released our fiscal 2013 third quarter results — you can read the press release here. “We knew that fiscal 2013 would be challenging, given the tough comparisons for The Hunger Games trilogy, our significant investments in digital initiatives, and the timing of our major new Educational Technology product launches later this calendar year,” noted Scholastic Chairman, President, and CEO Richard Robinson. “However, third quarter sales of The Hunger Games trilogy were significantly lower than our expectations, particularly in the U.S., Canada and Australia. Further, delays in customer purchases of our educational products have continued, as school districts focus on professional development and training in the context of the Common Core State Standards, and invest in iPads and other digital devices for the classroom.” He continued: “During the quarter, we saw a growing interest in Storia® and increased revenues from our Common Core focused professional development and consulting services. We accelerated our digital investments in advance of our summer 2013 Educational Technology product introductions, which include the long-anticipated Math 180™, a new K-2 reading program called iRead™, System 44® Next Generation, an iPad version of Read 180® and a new Common Core Language Arts program for middle school entitled Code X™. Scholastic continues to lead in the development of quality technology-based programs that empower teachers to accelerate student achievement while keeping the joy in learning. We expect our digital initiatives and the major expansion of our Educational Technology programs to generate strong profit growth next year and beyond.” As a result of the foregoing factors, Scholastic is revising its outlook for the fiscal year ending May 31, 2013. You can read all the details here.