WISCONSIN RAPIDS, Wis., Jan. 24 /PRNewswire-FirstCall/ --
Renaissance Learning(R), Inc. (NASDAQ:RLRN), a leading provider of
technology to support personalized practice, differentiated
instruction, and progress monitoring in reading, math and writing
for pre-K-12 schools and districts, today announced financial
results for the quarter and year ended December 31, 2007. Revenues
for the fourth quarter of 2007 were $28.3 million, an increase of
9.0% from fourth quarter 2006 revenues of $25.9 million. Net income
for the fourth quarter of 2007 was $2.7 million, or $.09 per share,
compared to net income of $1.8 million, or $.06 per share, for the
fourth quarter last year. (Logo:
http://www.newscom.com/cgi-bin/prnh/20001108/RENAISSANCELOGO)
Revenues for the twelve-month period ended December 31, 2007 were
$107.9 million, down 3.2% from 2006 revenues of $111.5 million.
Deferred revenue increased by $13.7 million for 2007 versus an
increase in 2006 of $5.7 million. Net income was $7.6 million for
2007, down 36.9% from the prior year's net income of $12.0 million.
Earnings per share for 2007 were $.26 compared to $.41 in 2006.
"Fourth quarter results were good and met our expectations,"
commented Terrance D. Paul, Chief Executive Officer. "Particularly
encouraging is that order dollars per school for customers who have
upgraded to AR Enterprise are growing by over $1,200 per school.
However, the transition to Enterprise subscriptions is
significantly shifting the seasonality of the software order
pattern with a higher percentage of our orders now coming in the
second and third quarters and a lower percentage in the fourth and
first quarters. Despite this heightened seasonal effect, we added
approximately 500 new customer schools in the fourth quarter and
total orders were up 3% compared to the prior year. Of particular
note, laptop orders were up by 8%, service revenues grew 25% in the
quarter, and operating cash flow was strong at $8.6 million."
"Seventeen percent of our approximately 63,000 active reading
school customers have upgraded to Enterprise so there remains
substantial future growth potential," continued Paul. "The
Enterprise model and the improving laptop trends make us optimistic
about our prospects for solid results in 2008 and beyond, though
first quarter order rates are expected to be tempered by the
seasonal shift in software orders to later in the year."
Renaissance Learning added approximately 500 new customer schools
in the U.S. and Canada during the quarter, bringing total North
American schools that are actively using the Company's products to
over 73,000. Of these, over 63,000 are using the Company's reading
products, over 29,000 are using the Company's math products and
over 21,000 are using at least one Renaissance Place product. The
Company will hold a conference call at 4:00 p.m. CST today to
discuss its financial results, quarterly highlights and business
outlook. The teleconference may be accessed in listen-only mode by
dialing 888-603-6873, ID number 30242050 at 4:00 p.m. CST. Please
call a few minutes before the scheduled start time to ensure a
proper connection. A digital recording of the conference call will
be made available on January 24, 2008 at 8:00 p.m. through January
31, 2008 at 11:59 p.m. The replay dial-in is 800-642-1687. The
conference ID number to access the replay is 30242050. Renaissance
Learning, Inc. Renaissance Learning, Inc. is the world's leading
provider of computer-based assessment technology for pre-K-12
schools. Adopted by more than 73,000 North American schools,
Renaissance Learning's tools provide daily formative assessment and
periodic progress-monitoring technology to enhance core curriculum,
support differentiated instruction, and personalize practice in
reading, writing and math. Renaissance Learning products help
educators make the practice component of their existing curriculum
more effective by providing tools to personalize practice and
easily manage the daily activities for students of all levels. As a
result, teachers using Renaissance Learning products accelerate
learning, get more satisfaction from teaching, and help students
achieve higher test scores on state and national tests. Renaissance
Learning has seven U.S. locations and subsidiaries in Canada,
India, and the United Kingdom. This press release contains
forward-looking statements made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995,
including statements regarding growth initiatives, growth prospects
and management's expectations regarding orders and financial
results for future periods. These forward-looking statements are
based on current expectations and various assumptions which
management believes are reasonable. However, these statements
involve risks and uncertainties that could cause actual results to
differ materially from any future results encompassed within the
forward-looking statements. Factors that could cause or contribute
to such differences include the failure of AR and AM Enterprise and
laptop orders to achieve expected growth targets, a decline in quiz
sales that exceeds forecasts, risks associated with the
implementation of the Company's strategic growth plan, dependence
on educational institutions and government funding, and other risks
affecting the Company's business as described in the Company's
filings with the Securities and Exchange Commission, including the
Company's 2006 Annual Report on Form 10-K and later filed quarterly
reports on Form 10-Q and Current Reports on Form 8-K, which factors
are incorporated herein by reference. The Company expressly
disclaims a duty to provide updates to forward-looking statements,
whether as a result of new information, future events or other
occurrences. RENAISSANCE LEARNING(R), INC. CONSOLIDATED STATEMENTS
OF INCOME (dollar amounts in thousands, except per share amounts)
(unaudited) Three Months Twelve Months Ended December 31, Ended
December 31, 2007 2006 2007 2006 Net sales: Products $22,047
$20,967 $84,628 $90,750 Services 6,211 4,956 23,304 20,778 Total
net sales 28,258 25,923 107,932 111,528 Cost of sales: Products
3,941 3,436 15,673 16,455 Services 3,219 2,639 11,830 10,011 Total
cost of sales 7,160 6,075 27,503 26,466 Gross profit 21,098 19,848
80,429 85,062 Operating expenses: Product development 4,395 4,814
18,506 17,291 Selling and marketing 8,950 8,858 36,042 33,639
General and administrative 3,687 3,677 14,951 16,330 Total
operating expenses 17,032 17,349 69,499 67,260 Operating income
4,066 2,499 10,930 17,802 Other income (expense), net 262 293 1,178
1,234 Income before income taxes 4,328 2,792 12,108 19,036 Income
taxes 1,623 1,033 4,541 7,043 Net Income $ 2,705 $ 1,759 $ 7,567
$11,993 Income per share: Basic $ 0.09 $ 0.06 $ 0.26 $ 0.41 Diluted
$ 0.09 $ 0.06 $ 0.26 $ 0.41 Weighted average shares outstanding:
Basic 28,751,516 28,988,449 28,792,337 29,551,309 Diluted
28,821,879 29,007,792 28,826,620 29,569,260 RENAISSANCE
LEARNING(R), INC. CONSOLIDATED BALANCE SHEETS (dollar amounts in
thousands) (unaudited) December 31, December 31, 2007 2006 ASSETS:
Current assets: Cash and cash equivalents $ 7,337 $ 5,953
Investment securities 8,136 22,525 Accounts receivable, net 8,791
10,528 Inventories 6,273 4,108 Prepaid expenses 2,197 1,896 Income
taxes receivable 1,450 1,291 Deferred tax asset 4,406 3,596 Other
current assets 300 97 Total current assets 38,890 49,994 Investment
securities 8,982 1,625 Property, plant and equipment, net 10,578
11,811 Goodwill 47,065 46,973 Other noncurrent assets 7,785 7,308
Total assets $ 113,300 $ 117,711 LIABILITIES AND SHAREHOLDERS'
EQUITY: Current liabilities: Accounts payable $ 2,011 $ 2,782
Deferred revenue 35,675 23,751 Payroll and employee benefits 4,184
4,750 Other current liabilities 3,563 3,429 Total current
liabilities 45,433 34,712 Deferred revenue 2,707 885 Deferred
compensation and other employee benefits 1,933 1,665 Deferred tax
liability - 878 Income taxes payable 5,104 - Other non-current
liabilities 136 - Total liabilities 55,313 38,140 Total
shareholders' equity 57,987 79,571 Total liabilities and
shareholders' equity $113,300 $117,711
http://www.newscom.com/cgi-bin/prnh/20001108/RENAISSANCELOGO
http://photoarchive.ap.org/ DATASOURCE: Renaissance Learning, Inc.
CONTACT: Susan Sutherland of Renaissance Learning, Inc.,
1-877-988-8048, fax, +1-715-424-3414, Web site:
http://www.renlearn.com/
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