Renaissance Learning (NASDAQ:RLRN)
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Renaissance Learning(R) Announces Preliminary Results for 3rd
Quarter and Revised Expectations for Balance of 2004
WISCONSIN RAPIDS, Wis., Sept. 30 /PRNewswire-FirstCall/ -- Renaissance
Learning(R), Inc. (NASDAQ:RLRN), a leading provider of learning information
systems and school improvement programs for pre-K-12 schools, today announced
that the Company now expects lower revenues and earnings than previously
projected for the second half of 2004. Revenues for the third quarter of 2004
are expected to be between $25.3 million to $25.8 million, a decline of 18 to
19% from the third quarter of 2003. Earnings per share for the third quarter
are now expected to be between $0.11 and $0.12, compared to $0.27 per share for
the third quarter 2003 which included a one-time tax benefit of $0.04 per share
related to income tax credits for research activities. Fourth quarter revenues
and earnings are also now projected to be lower than the prior year's fourth
quarter but by a lower percentage decline than what is expected for the third
quarter.
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"The new Renaissance Place platform is having an impact on current
performance," stated John R. Hickey, president and chief executive officer of
Renaissance Learning, Inc. "Although total order rates are approximately flat
compared to last year's third quarter, most of the revenue from the sales of
Renaissance Place and several new service offerings, which are subscription
based, is deferred to future periods. Deferred revenue on the balance sheet is
expected to increase by about $3 million in the third quarter. In addition,
customers are continuing to delay orders as they take time to understand the
benefits of Renaissance Place, and district-wide solutions take longer to sell.
Consequently, several large contracts that were anticipated for the third
quarter did not materialize."
"On the other hand, there are a number of positive signs. There are several
large district deals that are close to being realized. We are also experiencing
higher levels of quote activity versus last year which points to increased
orders and revenue in the future," added Hickey. "Most encouraging is the
rapidly growing interest for Renaissance Place. We are confident that the
marketplace's acceptance of Renaissance Place as a powerful information
platform to accelerate learning is gaining momentum. We believe this, coupled
with a gradual improvement in the funding environment for schools and the
introduction of additional new products such as English in a Flash, which is
scheduled for a fourth quarter release, will all serve to drive improved
results in future periods."
The Company will hold a conference call at 4:00 p.m. CDST today to discuss this
announcement and the business outlook. The teleconference may be accessed in
listen-only mode by dialing 888-868-9083 at 4:00 p.m. CDST. Please call a few
minutes before the scheduled start time to ensure a proper connection.
A digital recording of the conference call will be made available on September
30, 2004 at 8:00 p.m. through October 7, 2004 at 11:59 p.m. The replay dial-in
is 877-519-4471. The conference ID number to access the replay is 5245030.
Renaissance Learning(R), Inc., is a leading provider of research-based learning
information systems software, school improvement programs, teacher training and
consulting. Adopted by over 66,000 schools, Renaissance information technology
products give students and teachers continuous constructive feedback that helps
motivate students, dramatically accelerate learning, improve test scores, and
help students master all standards, while reducing teacher paperwork.
Renaissance Learning has six U.S. locations and subsidiaries in Australia,
Canada, India, and the United Kingdom.
This press release contains forward-looking statements made pursuant to the
safe harbor provision of the Private Securities Litigation Reform Act of 1995,
including statements regarding future financial and operating results, the
introduction and acceptance of new products and services, and new marketing
approaches. Any such forward-looking statements may involve risk and
uncertainties that could cause actual results to differ materially from any
future results encompassed within the forward-looking statements. Factors that
could cause or contribute to such differences include those matters disclosed
in the Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q and
the Company's other Securities and Exchange Commission filings which factors
are incorporated herein by reference.
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DATASOURCE: Renaissance Learning, Inc.
CONTACT: Susan Sutherland of Renaissance Learning, Toll free ofc.,
+1-877-988-8048, or fax, +1-715-424-3414,
Web site: http://www.renlearn.com/