Total revenue fell 8.4%, to $8.7 million at Educational Development Corp. in the third quarter ended November 30 and earnings slipped to $724,900 from $776,900 in the comparable quarter last year. The sales decline came in EDC’s home business division where sales fell 17.6%, offsetting a 13.4% increase in its publishing division.
EDC attributed the decline in the home business division to decreases of 29% in home parties, 24% in internet sales, 14% in school and library sales, and direct sales of 9%, offset by the addition of the new fund-raiser category of sales. The company said it has instituted new incentives to try to lift sales in the division. The gain the publishing division was due to a 20% increase in sales to major national accounts, a 13% increase in sales to smaller retail stores and a 7% increase in inside sales.
For the nine month period, total sales were down 5.1%, to $20.4 million, and earnings slipped to $1.1 million from $1.2 million.
EDC also reported that it paid $250,000 for the 11% stake it acquired in October in Demibooks whose Demibooks Composer product allows publishers and self-published authors and illustrators to create interactive books for the iPad on the device itself. EDC has also formed an imprint with Demibooks, InkPad Press. EDC has the option to make an additional $250,000 investment, resulting in a total position of 18%, upon the completion of specified milestones.
