Virco Announces Third Quarter Results

Virco Mfg. Corporation (Nasdaq:VIRC) today announced third quarter and year-to-date results in the following letter to stockholders from Robert A. Virtue, President and CEO:

For the three months of August through October, traditionally the tail end of our summer delivery season, revenue was $53,074,000 compared to $60,779,000 in the same period last year, a decline of 12.7%. Revenue for the nine months ended October 31, 2011 was $140,147,000 versus $158,002,000 in the corresponding period last year, a decline of 11.3%. Sales backlog at October 31, 2011 was approximately $5 million higher than the prior year.

The Company's order rates and results of operations for the first nine months of 2011 continue to be adversely impacted by economic conditions and the related impact on tax receipts and budgeted expenditures for public schools. Order rates for the first nine months of 2011 have declined by approximately 11% compared to the same period last year and have been volatile from quarter to quarter. Order rates for the first quarter of 2011 declined by nearly 22% compared to the same period last year. Order rates for the seasonally important second quarter declined by nearly 9% compared to the same period last year.   Third quarter order rates stabilized and showed a slight (