Red Ink at Franklin
by Staff -- Publishers Weekly, 7/1/2002
Failure of its eBookMan to gain consumer acceptance wreaked havoc with Franklin Electronic Publishers' bottom line for the fiscal year ended March 31. The company lost $26.6 million last year on revenues of $71 million, compared to a net income of $914,000 on revenues of $80 million in fiscal 2001.
The loss in fiscal 2002 includes more than $22 million in write-downs and onetime charges. The charges include an $11-million charge related to its Rolodex line plus a $9.9-million charge to write-down eBookMan inventory and a charge of approximately $1 million for severance payments. Late in calendar 2001 Franklin cut 40 positions worldwide (News, Nov. 26) and the company eliminated another 14 in the second half of the fiscal year, making for a 20% workforce reduction. In addition to the $9.9-million eBookMan write-down, Franklin said the line lost $4.9 million in the year. Sales of eBookMan were $871,000 in this year's fourth quarter, compared to $5.2 million in the same period last year.
