Franklin Has Gains In Sales, Earnings
by Staff -- Publishers Weekly, 2/25/2002
Cost controls that included a reduction in its workforce and the consolidation of its European operations, coupled with lower losses from the eBookMan, resulted in net income of $1.4 million at Franklin Electronic Publishers for the third quarter ended December 31, 2001, compared to earnings of $524,000 in last year's third period. Revenues at the company rose 3.8%, to $23.3 million.
Franklin president Barry Lipsky attributed the improved financial performance to gains in the company's core reference products and Rolodex electronics businesses. Losses in the eBookMan product line decreased to $807,000 from $1.4 million in last year's comparable quarter. Lipsky acknowledged that, while the consumer response to the retail versions of eBookMan "was well below our expectations," the company is using that technology for new products in its core operation, including the launch of dedicated eBookMan products for Franklin's medical and other vertical markets.
For the first nine months of fiscal 2002, Franklin's revenues fell 3.3%, to $58 million, and the company had a net loss of $6.4 million, compared to net income of $1.2 billion in fiscal 2001. The loss in fiscal '02 reflects $9.1 million in eBookMan losses including a previously announced $4.2-million write-off compared to eBookMan losses of $2.7 million in the first nine months of fiscal '01.
The company also announced that in a bid to cut operating expenses even further, it plans to sell its New Jersey headquarters.
