CEO highlights what role might mergers and acquisitions play for Lightspan
John Kernan, Lightspan
JOHN T. KERNAN is Chairman and Chief Executive Officer of Lightspan, Inc.
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TWST: Could you give us a brief overview and history of the company?
Mr. Kernan: Lightspan (Nasdaq:LSPN) is in the education technology business and fundamentally we do three kinds of things. First, we have software at the kindergarten to grade eight level that teaches students reading and mathematics, language arts and other subjects. Schools buy our software for the students to use in the classroom but even more importantly they also buy a copy of the software for every child to take home. This is what differentiates Lightspan from everyone else in the K-12 education software business. Our reading, math and language arts product Achieve Now is actually used 90% of the time at home. We have also done another interesting thing. In addition to having Achieve Now work on computers, it also works on the Sony PlayStation. So if a family does not have a computer at home, which many low income families don’t, the school district will actually lend that family a PlayStation which only costs $100. The second business that we have is called Academic Systems, and here we have mathematics, English and other topic software for the college marketplace. Very interestingly, our courses in math and English are delivered entirely with technology and can be consumed on the Internet. You can actually be doing college work — right now we have about 300 colleges using our product — and moving forward and getting your grades entirely on the Internet. Our third line of business includes a series of subscription Internet sites. The first of these is called The Lightspan Network and thousands of schools use this today. It allows teachers, students and administrators to organize the Internet for use in education. It has all kinds of content and education search engines and the like. Another subscription Internet service is called eduTest which allows teachers to actually give students standardized-style tests that mirror the big tests that kids take at the end of the school year.
TWST: As you look to grow, what role might mergers and acquisitions play? Can you complement them through products or other organization on the outside?
Mr. Kernan: Lightspan first of all is very fortunate to have about $90 million in cash and so if something comes along that we think can move through our wonderful sales and distribution system, we will take a hard look at it. We are fully in control of our own destiny. We make our products. We distribute them. We train the teachers how to use them. The real focus at Lightspan over the next year is to just keep making that product development, distribution, marketing, training system more efficient so that we can move this company to profitability as soon as possible.
TWST: What is the vision? When you look long term what is the ultimate enterprise of Lightspan?
Mr. Kernan: I think that one of the few things that darn near everyone in our country and in the political arena agrees on is that we’ve got to pay more attention, we have got to be more serious and we’ve got to spend more money on education. Sadly it is one of the few areas of our national scene where technology hasn’t been used as effectively and as broadly as it has in other areas. I think we’re going to see the Internet and other technology programs be a big part of this nation’s thrust to fix its schools. If you’re looking for a sector to invest in that is underutilized with technology, you don’t have to look farther than education |
