To: Thomas Kirwin who wrote (426 ) 6/11/1998 11:13:00 PM From: Thomas Kirwin Read Replies (1) | Respond to
News Release HighlightsRevenues for the second quarter of 1998 increased 71% to a record $1.12 million as compared to $650,000 in 1997's second quarter. Revenues from TASA's DRP tests increased for both the quarter and six-month period. DRP catalog sales were $587,000 for the quarter and $1.04 million for the six-month period, an increase of 22% and 15%, respectively. DRP contract sales to its three state customers of $87,000 for the quarter and $583,000 for the six-month period were up 19% and 8%, respectively. TASA's custom test design subsidiary BETA had revenues of $124,000 for the quarter and $248,000 for the six-month period, an increase of 25% and 67%, respectively. Modern Learning Press, purchased in May 1997, had second quarter and six-month sales of $318,000 and $547,000, respectively. In 1998, MLP accounted for 66% and 69% of the Company's respective quarter and six-month revenue gain. Gross profit for the second quarter increased 97% to $692,000 as a result of increased revenues (71%) and improved gross profit margins (62% vs. 54% in 1997's second quarter). For the six-month period, gross profit increased 40% to $1.63 million, again as a result of increased revenues (52%) and improved gross profit margins (67% vs. 65% in 1997's comparable period). Net operating costs, including selling, general and administrative expenses, and a $200,000 bad debt recovery, increased 63% to $785,000 during the second quarter of 1998, or 70% of revenues. The bad debt recovery booked in the second quarter was for settlement of a 1997 write-off of a $400,000 note receivable. Net operating costs for the six-month period, including the 1998 bad debt recovery, rose 81% to $1.71 million, or 71% of sales. Additionally, the state of Texas approved our DRP test as one of the several reading tests schools may choose for their mandated testing in grades 1 and 2. Therefore, TASA is stepping up marketing efforts to reach most of Texas's elementary schools before the 1998-99 school year begins. At MLP,'' Mr. Simon continued, ''we are developing two new workbook series as well as expanding an existing series for release this winter. The gearing up for these projects had some effect on second quarter earnings. However, the fruits of these efforts should positively effect future revenue streams.''Since our operating expenses are effectively flat, we expect to see profitability in the second half of our fiscal year. ''
