Educational Development Q2 revenue falls, loss widens despite cost cuts
EDUC•Educational Development reported fiscal second-quarter revenue of $4.07 million and a net loss of $1.57 million, with loss per share of $0.19. The company said cost reductions narrowed its pretax loss despite lower revenue.
1. Quarterly results
Educational Development’s fiscal second-quarter revenue fell year over year, while its net loss widened. The company reported revenue of $4.07 million, a net loss of $1.57 million and a loss per share of $0.19. It said cost reductions lowered general and administrative expenses and narrowed the pretax loss, while inability to recognize deferred tax assets contributed to the wider net loss.
2. Promotions and outlook
The company said product and recruiting promotions helped rebuild Brand Partner headcount and convert excess inventory into cash. It did not provide specific financial guidance for the current quarter or full year.
