Riverdeep Group said its second-quarter net loss narrowed to $3.1 million (€3.6 million) from $14 million a year earlier. But, adjusted for exceptional items and non-cash charges, net income at the educational software group rose to $4.4 million in the second quarter from a net loss of $7.8 million a year earlier.
Riverdeep chief executive Mr Barry O'Callaghan said: "We are pleased to have exceeded expectations and look forward to delivering shareholder value through continued execution of our business model."
The educational software group announced a one-time restructuring charge of $4.1 million during the quarter ending December 31st, 2001. This related primarily to severance and facility closing costs associated with the integration of The Learning Company assets. Riverdeep acquired these assets, paying $40 million in stock and assuming $20 million in debt, last year.
Second-quarter revenue rose to $41.3 million from $11.9 million a year earlier and from $29.6 million in the first quarter.
"Our strategy of increasing distribution and brand recognition through acquisitions is paying off, as evidenced by significant cross-selling of all brands in the school and consumer channels," Mr O'Callaghan said.
Shares in the company were down slightly on the Nasdaq yesterday, trading at $17.30 by the Irish close compared with $17.94. In Dublin, they lost five cents to €3.45.
The company said that, during the quarter, it won its first statewide contract in the US providing teacher technology assessment to the state of Georgia.
