Educational Development Corp. has made an equity investment in Demibooks, a Chicago-based technology company that has developed a platform to allow publishers and authors to create interactive books for the iPad. EDC president Randall White said the company has used Demibooks’ platform, Composer, to create its own apps and will continue to use it to develop more of its own products. Composer is also open for use by outside publishers and authors.
Commenting on the deal with EDC, Rafiq Ahmed, CEO of Demibooks said: "We are thrilled to receive this investment from EDC. Their deep experience in publishing and distribution gives us a valuable strategic partner." EDC has the option of increasing its investment in Demibooks if certain performance milestones are reached.
On the financial front, EDC reported that revenue for the second quarter ended August 31 fell 5.4%, to $5.4 million, while earnings fell to $126,200 from $190,000 in the comparable period in fiscal 2011. For the first six months of fiscal 2012, earnings rose to $426,400 from $378,400 while sales declined 2.8%, to $11.7 million.
EDC’s publishing division posted a revenue gain of 4.6% for the quarter and 8.9% for the six months, which it attributed to strong sales in the smaller retail market, including toy and gift stores. The home business division had a 14.4% decline in sales, with revenue down 10.7% in the first half of the year. This division, EDC said, has been impacted more by the economic conditions and consumer reductions in spending levels than its retail division, leading EDC “to create new incentives for our field sales force to support their business.”