Second-Quarter Results Up for Scholastic

Growth in the children's book segment fueled an increase in revenue for Scholastic's second quarter of FY 2007, ending Nov. 30, 2006. Overall revenue was $735.5 million, an increase of 6 percent from $696.7 million during the second quarter of FY 2006. Net income was up 12 percent to $75.1 million, up from $66.9 million during the same quarter last year.

"Scholastic had a positive second quarter, led by revenue growth and improved margins in the children's book business," said Richard Robinson, CEO, president and chairman. "School book Club profits rose significantly as a result of strong sales in core clubs and reduced promotion spending, while higher revenue per fair drove solid results in our Fairs business. We are pleased with our execution year-to-date and are on plan to meet our fiscal 2007 goals, including our cost savings targets."

In children's-book publishing and distribution, revenue was $442.7 million, an increase of 4 percent over FY 2006. The International segment also showed significant growth, increasing revenue 14 percent to $139 million. Educational publishing dropped slightly to $97.2 million in revenue, compared to $99.2 million last year.

For the first half of FY 2007, revenue is $1,070.4 million, down from 1,195.1 million for the first half of last year. Net income for the first half was $28.2 million, down from $45.7 million for the first half of FY 2006.