Despite an increase in revenue this year for Scholastic Corp., the company is reporting a loss for its first quarter that ended on August 31.
The company confirmed a widened net loss this first quarter of $34.1 million or $1.05 per share, up from the $29.9 million loss or $0.94 per share loss reported in the first quarter last year.
Scholastic reported one-time expenses of $0.02 per share in the area of severance in relation to cost-reduction programs in the company, which has typically reported a loss in previous years during its first quarter when most US schools are not in session.
The first quarter loss is due to an increased loss in international markets, as well as lower results in the company’s Educational Technology from a comparison during the launch of a new product line this year.
Meanwhile, the company also reported a revenue increase of 3% to $283.8 million from $276.3 million last year.
According to the company, the increase is due to gains in guided reading and classroom book collections, educational technology math programs, international efforts, and school clubs and fairs.
Clubs and fairs in schools contributed 20% of the revenue growth this year.
An increase in higher media and technology sales in Australia led to a 10% growth in international revenue, as did improved performance in the UK and increased direct sales in Malaysia and Thailand.
Scholastic plans on per share earnings of $1.80 to $2.00 for fiscal 2015, as well as a total revenue of $1.9 billion.
President and CEO Richard Robinson said he expects to see higher revenues resulting from the company’s Educational Technology for the rest of the fiscal year.
“In our Educational Technology segment this quarter, we further strengthened our field sales organization by adding critical new sales management, and we intensified sales efforts on our core reading and mathematics intervention programs, including services to support the professional growth of teachers. We expect to see higher revenues from these initiatives over the remainder of the fiscal year,” said Richard Robinson in a press release. “Meanwhile, strong results in classroom books and our guided reading products show that schools are expanding their use of customized reading programs for grades K−5, while encouraging independent reading and the use of children’s literature programs, which are the hallmark of Scholastic. As a whole, our education business is performing well, as our offerings are aligned with the broader trends in education. In addition, our school-based clubs and fairs are also benefiting from the renewed concentration on independent reading as a gateway to improved student motivation and achievement.”