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Irish e-learning company Riverdeep said revenues in its second quarter increased by almost 350 percent compared to the same period last year.
Although the revenue jump appears dramatic, it may not be a fair comparison, explained Jemma Houlihan, analyst with ABN-Amro in Dublin. "They had not acquired the Learning Company last year. A better comparison would be to the previous quarter, where revenues are up around 40 percent," she told ElectricNews.Net
Riverdeep said for the quarter to 31 December revenue came in at USD41.3 million compared to USD11.9 million in the prior year quarter and USD29.6 million in the first quarter of fiscal 2002. Adjusted net income for the firm was USD4.4 million for the three month period, up USD1.2 million from the previous quarter. In the same period in 2000 adjusted net losses came to USD7.8 million.
The company announced a one time restructuring charge during the quarter related primarily to severance and facility closing costs associated with the integration of The Learning Company assets. "They kept a close reign on operating expenses and less than expected was spent on consolidation and facility closures after acquiring the Learning Company. No major surprises but the balance sheet is better than expected," Houlihan said.
Per basic share and diluted ADS, adjusted net income was USD0.12 compared to adjusted net losses per ADS of USD0.24 a year earlier. Net loss was USD3.5 million, a striking improvement from last year's net loss of almost USD145 million in the second quarter.
Thomson Financial/First Call's consensus estimate for the company predicted EPS (earnings per share) of USD0.11, although estimates varied widely between USD0.06 and USD0.21. ABN-Amro had forecast cash EPS of USD0.10 per share.
"We are pleased to have exceeded expectations and look forward to delivering shareholder value through continued execution of our business model. Our strategy of increasing distribution and brand recognition through acquisitions is paying off..." said Barry O'Callaghan, executive chairman and chief executive officer of Riverdeep.
Last year proved to be a good one for Riverdeep, as the company continued to dramatically increase its revenues over the previous year. In its fourth quarter alone the firm saw revenues climb by 1100 percent year on year pushing ever closer to net profitability. Moreover a string of acquisitions, such as Teacher Universe and the Learning Company, as well as an investment from Reed Elsevier kept the firm's shares relatively high despite the fallout in the tech sector.
On Thursday, investors in Dublin seemed pleased with the figures as the company's stock climbed 1.5 percent to EUR3.55 around lunchtime on the Dublin Stock Exchange. Over the last 52-weeks in New York, Riverdeep shares have hit a high of USD30 in June and a low in late September of USD12.12, following the terrorist attacks in the US.
Much of the company's success is derived from its dependence on the US Federal and State governments who despite the downturn have increased spending in education, particularly high-tech learning tools like the ones Riverdeep provides.
The company, which employs around 350, offered no trading outlook for the upcoming quarter in its results.
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