Frank,
How does this news fit into your earnings model? I'm sure that calling this a typical quarter's sales volume for Latin America is an oversimplification. If this was the case, the annual revenue for EDUSF would be around $35 million (using 40% of sales per the release). Now that would be a nice surprise. Clearly sales of this nature must be a rarity.
Dave
EduSoft Receives Orders for $3.5 Million From Latin America
ROSH HA'AYIN, Israel--(BUSINESS WIRE)--August 6, 1998--EduSoft Ltd. (NASDAQ - EDUSF/NMS) announced today that it received orders amounting to $3.5 million in the second quarter of 1998 from Latin America.
The company's parent, Degem Systems Ltd., which distributes EduSoft's products exclusively in Latin America, obtained the orders from customers in Brazil, Colombia, Venezuela, Bolivia, Uruguay and Chile. A portion of these orders were included in second quarter revenues and the remainder will be reflected in EduSoft's sales in the third quarter of 1998.
The orders are for both the consumer and school markets and consist primarily of EduSoft's multimedia English-learning products, including the new My First English(C) ESL series for young children.
EduSoft's Chairman and Degem System's President, Israel Asher, stated: "We are pleased that our efforts to introduce EduSoft's products to school systems and to ministries of education in Latin America have been increasingly successful. Degem Systems' commitment to do its utmost to market EduSoft's products in Latin America remains as strong as ever."
EduSoft's President and C.E.O., Menachem Hasfari commented by saying: "Latin America was our largest market in 1997, constituting 38% of total revenues. This trend continues in 1998 and we expect that approximately 40% of our revenues will be generated in Latin America, mainly from the school market, where the Company is offering its turnkey services to public school systems. We are witnessing an increase in our business in Latin America as more school systems jump on the technology wagon and equip their students with computers and educational software." |
