I can't help but be interested in The Learning Company. They now have such a huge line up of products they dominate any home PC users buying list.
Still, I have bought many titles from them at Costco, and the most remarkable were 15.99 with a $15 rebate. It made me wonder how they can make money. The same titles were at CompUsa for $35.
But, the software is excellent, and it covers the whole range of educational/play software for young people which is certainly a great market. I can see myself buying lots more from them as time goes on and I can't say that for many of my software purchases.
Looks like they have an excellent entry into Web based sales of software and more important subscription services. There is no competitor, but of course, Microsoft does hold potential especially now that Bill has a kid.
Regards,
Mark
The Learning Company, Inc. Announces Third Quarter 1998 Results of $.37 Per Share
PR Newswire - November 04, 1998 16:36
CAMBRIDGE, Mass., Nov. 4 /PRNewswire/ -- The Learning Company, Inc. (NYSE: TLC) today announced its financial results for the three and nine month periods ended September 30, 1998. All prior period results have been restated to reflect the merger with Broderbund Software, Inc. on August 31, 1998 using the pooling-of-interest method of accounting.
Revenues for the three and nine month periods ended September 30, 1998 were $212,723,000 and $564,042,000 as compared to the prior year's revenues in the three and nine month periods of $141,737,000 and $401,532,000. Excluding the effect of the one-time Broderbund related restructuring charge of $59,659,000, adjusted net income for the three month period ended September 30, 1998 would have been $38,447,000 as compared to $16,661,000 in the three month period ended September 30, 1997. Earnings per share for the three month period ended September 30, 1998, excluding the effect of the one-time Broderbund related restructuring related charge, would have been $.37 per share and $.25 per share in the prior year three month period ended September 30, 1997. Reported net loss including the one-time Broderbund related restructuring related charge for the three month period ended September 30, 1998 was $.24 per share.
Excluding the effect of the amortization, acquisition and other charges of $282,852,000, adjusted net income for the nine month period ended September 30, 1998 would have been $71,940,000 as compared to $50,242,000 in the nine month period ended September 30, 1997. Earnings per share for the nine month period ended September 30, 1998, excluding the effect of the amortization, acquisition and other charges, would have been $.77 per share and $.77 per share in the prior year nine month period ended September 30, 1997. Reported net loss including amortization, merger and other costs for the nine month period ended September 30, 1998 was $2.55 per share.
Michael Perik, Chairman and Chief Executive Officer of The Learning Company said, "The Learning Company continues to experience strong growth in its retail software business with year-over-year dollar sell-through up 27% on a combined basis. We are particularly pleased with the strength of our balance sheet at September 30, 1998. The company ended the quarter with $234,796,000 in cash and has experienced an improvement in its days sales in accounts receivable over June 30, 1998 of nine days. During the third quarter we completed the merger with Broderbund and implemented a swift integration of its operations into those of The Learning Company. This now makes us the largest consumer software company in the country after Microsoft and the premier consumer software company for family enrichment and life long learning."
Kevin O'Leary, President of The Learning Company said, "The Learning Company has built one of the largest portfolios of branded digital content in the industry. This puts us in an excellent position to deliver quality educational, enrichment and entertainment experiences to consumers in whatever electronic format they prefer, from CD-ROM to DVD to on-line. In the third quarter, we continued to develop our on-line presence while maintaining strong growth in our core franchises and channels. Among the over 25 new products that were launched in the quarter -- our biggest launch ever -- were The Rugrats Adventure Game, American Greetings Print!, Reader Rabbit's Math Ages 4 to 6, Dr. Seuss Kindergarten and Compton's Encyclopedia 1999 Deluxe. In the fourth quarter, we will continue to leverage our state-of-the art, proprietary development engines that streamline the process of creating new multimedia titles with the release of Total 3D Home, Oregon Trail III for DVD, BodyWorks DVD and DW: The Picky Eater."
This release contains information forecasting the results in the future, which are "forward-looking statements" under the federal securities laws. Actual results could differ materially from those forecasts and there can be no assurance that such results will be achieved. Important factors that could cause actual results to differ materially from those presently estimated include the ability of the Company to predict with certainty the time and resources necessary to develop and introduce new products and the acceptance by customers of new and additional products sold by the Company.
The Learning Company, Inc. (NYSE: TLC) is one of the country's leading developers of consumer software for the entire family. The company publishes some of the best-known education, reference, personal productivity and family entertainment brands in the U.S., including Reader Rabbit, The Oregon Trail, Sesame Street, Carmen Sandiego, National Geographic, American Greetings, The Print Shop, Family Tree Maker and Myst. The company's products are sold in more than 23,000 retail stores in North America and through multiple distribution channels including school sales, online, direct marketing and OEM. The Learning Company also develops, publishes and distributes products internationally through subsidiaries in France, Germany, the United Kingdom, Holland, Japan and Australia, and with distributors throughout Europe, Latin America and the Pacific Rim. The Company's headquarters are located at One Athenaeum Street, Cambridge, Mass. 02142; telephone 617-494-1200; fax 617-494-1219 and the corporate Web site is located at www.learningco.com.
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