* Second-quarter earnings $1.89/share vs $2.60 last year
* Revenue down 10 percent at $616.2 mln
* Expects to save up to $30 mln through cost cuts
Dec 20 Children's book publisher Scholastic Corp
reported lower quarterly results as sales of its "The
Hunger Games" trilogy tapered off and revenue in its high-margin
educational business fell.
The company said it expected to save up to $30 million
through cost cuts in the year ending May 31, but did not specify
where the savings would be made.
Net income fell to $61.8 million, or $1.89 per share, in the
second quarter, from $82.8 million, or $2.60 per share, a year
Revenue fell 10 percent to $616.2 million.
Sales of its educational products fell 20 percent to $52.2
million on lower spending by schools on educational technology
products as they focused on training as part of making learning
more uniform across the United States.
The business, which includes READ 180, brought in about 12
percent of total revenue last year.
The U.S. publisher of the "Harry Potter" series said in
September that fears of the federal budget falling off a "fiscal
cliff" were slowing spending by schools.
Scholastic in November cut its full-year forecast to
earnings from continuing operations between $1.40 and $1.60 per
share on revenue of about $1.8 billion to $1.9 billion.
Shares of New York-based Scholastic closed at $29.29 on the
Nasdaq on Wednesday.
The stock plunged 18 percent -- its highest intra-day
percentage drop in more than nine years -- to a near-year low of
$25.03 on Nov. 21, a day after the company cut its forecast.