Consolidated revenues of Daily Journal Corporation (NASDAQ:DJCO) were $37,580,000 and $40,424,000 for fiscal years 2010 and 2009, respectively. This decrease of $2,844,000 was primarily from decreases in display advertising revenues of $540,000, classified advertising revenues of $264,000, Sustain consulting revenues of $1,813,000 and circulation revenues of $760,000, partially offset by an increase in public notice advertising revenues of $403,000. In this regard, the Company continued to benefit from the large number of foreclosures in California and Arizona for which public notice advertising is required by law.

During fiscal 2010, consolidated pretax income decreased by $676,000 (5%) to $12,272,000 from $12,948,000 in the prior year. The Company’s traditional business segment pretax profit increased by $273,000 to $13,204,000 from $12,931,000 primarily because of the increase in public notice advertising revenues and a decrease in costs and expenses. Sustain’s business segment had a pretax loss of $932,000 compared to a pretax profit of $17,000 in the prior year because of a decrease in consulting revenues from governmental agencies.

At September 30, 2010, the Company held marketable securities valued at $63,581,000, including unrealized gains of $29,655,000. It accrued a liability of $11,269,000 for income taxes due only upon the sales of the appreciated securities. All the marketable securities are common stocks of two Fortune 200 companies and certain bonds of a third, and almost all of the unrealized gains were in the common stocks.

Consolidated net income was $7,672,000 and $8,026,000 for fiscal years 2010 and 2009, respectively. Net income per share decreased to $5.56 from $5.70.
  Reportable Segments   Total Results

Traditional Business


for both Segments
Fiscal 2010
Revenues $ 34,243,000 $ 3,337,000 $ 37,580,000
Pretax income (loss) 13,204,000 (932,000 ) 12,272,000
Income tax benefit (expense) (4,950,000 ) 350,000 (4,600,000 )
Net income (loss) 8,254,000 (582,000 ) 7,672,000
Fiscal 2009
Revenues $ 35,481,000 $ 4,943,000 $ 40,424,000
Pretax income 12,931,000 17,000 12,948,000
Income tax expense (4,917,000 ) (5,000 ) (4,922,000 )
Net income 8,014,000 12,000 8,026,000

Daily Journal Corporation publishes newspapers and web sites covering California and Arizona, as well as the California Lawyer magazine, and produces several specialized information services. Sustain Technologies, Inc., a wholly owned subsidiary, supplies case management software systems and related products to courts and other justice agencies, including district attorney offices and administrative law organizations.