Perhaps the most interesting figure in John Wiley’s second quarter financial report was an update on how much its transition from a traditional publisher to “a global provider of knowledge and knowledge-enabled services” in the areas of research, professional practice and education has cost. In the most recent quarter, Wiley posted restructuring charges of $15.3 million which included $10 million of “accrued redundancy costs, $3 million of process reengineering consulting costs, and $2 million of other costs including contract termination costs.” Including the most recent charge, Wiley said, it has recorded $47.5 million in restructuring charges since it began the overhaul of its business in January. Wiley said it expects to record additional restructuring charges for the remainder of the fiscal year, which ends next April, of approximately $10 million.
As of October 31, 2013, Wiley said it had developed plans to achieve $70 million of its $80 million fiscal year 2015 savings goal, with more than half of the $80 million expected to improve earnings in fiscal 2015 and the remainder to be reinvested into the business.
In the quarter, revenue rose 4%, to $449.1 million, but net income fell 16%, to $36.2 million, a figure that includes a number of one-time items.
