Scientific Learning Corporation (NASDAQ:SCIL), a leading provider of technologies for accelerated learning, today announced financial results for the second quarter ended June 30, 2011.
Total revenue in the second quarter of 2011 was $12.4 million, compared to $12.3 million in the second quarter of 2010. The second quarter of 2011 included $2.1 million of deferred revenue for sales booked in previous quarters. Total booked sales for the second quarter were $10.1 million, compared to $12.0 million in the second quarter of 2010, reflecting the continuing difficulties in the K-12 funding environment. Adjusted EBITDA was $1.7 million in the second quarter of 2011 compared to $238,000 in the second quarter of 2010. Net income in the second quarter of 2011 was $884,000, or $0.05 per share, compared to a net loss of $781,000, or $0.04 per share, in the second quarter of 2010.
“Although we experienced a decrease in K-12 booked sales this quarter, we’ve made important strides in our business model and internal processes to better align with our new technology and upcoming product launches,” said Andy Myers, Chief Executive Officer. “We are encouraged by the positive trends in our international and direct-to-consumer markets and with our new on-demand platform, the historical barriers to entry in these growth markets are diminishing. We also saw a 27% increase in the number of K-12 transactions, which is a testament to the positive traction we’re seeing with our new pricing and on-demand solution. As we look out to the second half of the year, we’ll continue to focus on transforming our sales, customer service, and operations to leverage the new platform and pricing model across the K-12, international and consumer markets.”
Booked sales and Adjusted EBITDA are both non-GAAP measures. Additional information on these non-GAAP measures and reconciliations are included at the end of this earnings release and in the investor information section of our website, www.scientificlearning.com.Conference Call Information A conference call to discuss second quarter 2011 financial results is scheduled for today, August 11, 2011 at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. Investors and analysts interested in participating in the call are invited to dial (866) 652-3154 (domestic) or (706) 634-7311 (international), Conference ID # 86460967, approximately 10 minutes prior to the start of the call. The conference call will be available live on the Investor Information portion of the Company’s website at http://www.scilearn.com/investorinfo. A replay of this teleconference will be made available on the Scientific Learning website approximately two hours following the conclusion of the call. To hear the replay by phone, please call (800) 642-1687 (domestic) and (706) 645-9291 (international) and enter conference id number 86460967. About Scientific Learning Corporation We accelerate learning by applying proven research on how the brain learns. Scientific Learning’s results are demonstrated in over 200 research studies and protected by over 55 patents. Learners can realize achievement gains of 1 - 2 years in as little as 8 - 12 weeks and maintain an accelerated rate of learning even after the programs end.