Peoples Educational Holdings slips To Loss In Q4; Guides FY09 - update

Thursday, Educational material publisher Peoples Educational Holdings, Inc. (PEDH) reported a loss for the fourth-quarter compared to a profit last year hurt by lower revenue from test preparation, assessment and instruction product segment. The company provided FY09 outlook.

The Saddle Brook, New Jersey-based company reported a net loss for the fourth quarter of $0.66 million or $ 0.15 per share compared to a profit of $0.03 million or $0.01 per share in the corresponding quarter last year.

Adjusted net loss for the quarter was $0.23 million or $0.05 per share compared to adjusted income of $0.25 million or $0.06 per share during the same period in the prior year.

Net revenue for the quarter decreased to $8.23 million from $9.18 million in the prior-year period.

Segment wise, revenue from the test preparation, assessment and instruction product group was $6.2 million for the quarter, down 13% over the prior year. College preparation revenue for the quarter was $2.0 million, down 1% from the prior year.

For fiscal year ended may 31, 2008, net loss increased to $0.77 million or $0.17 per share from $0.28 million or $0.06 per share in the same period a year ago.

Adjusted net income, which excludes non-recurring costs, and difference between prepublication expenditures and amortization was $0.50 million or $0.11 per share for the current year, an increase over the prior year adjusted loss of $0.62 million or $0.14 per share.

Net revenue increased to $39.99 million from $38.70 million in the preceding year.

Segment wise, test preparation, assessment and instruction product group revenue decreased 1% to $25.7 million for the year while college preparation revenue increased 12% to $14.3 million for the year.

Looking forward to fiscal 2009, the company expects revenue in the range of $41 million to $43 million, net income in the range of $0.6 million to $1.0 million and earnings per share in the range of $0.13 to $0.22 per basic share. Also, the company expects adjusted net income in the range of $1.3 million to $1.8 million and earnings per share in the range of $0.29 to $0.40 per basic share.

Peoples educational holdings closed Thursday's regular trading at $1.90 on a volume of 1,770 shares on the Nasdaq.

by RTTNews Staff Writer

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