Revenues at Millbrook Press rose 1.1% in the fiscal year ended July 31, 2001, to $21.6 million, while net income fell to $144,000 compared to $1.1 million in fiscal 2000, the company reported in its year-end filing with the Securities and Exchange Commission.

The company said a significant increase in trade sales in the year was offset by a decline in revenues to the school and library market, due to lower sales from telemarketing—which underwent significant management changes in the year—and greater low-margin special sales. The decline in earnings was the result of the marginal increase in revenues coupled with higher operating expenses. Expenses increased by $793,000 in the year, led by the $300,000 investment to launch its new fiction imprint, Roaring Brook Press. First books from the imprint are due out next spring. Other increases in expenses were in telemarketing, direct-marketing and direct-selling materials.

During the year, the company published 80 hardcover titles under its Millbrook Press imprint for the school and library market, of which 31 were simultaneously released in the consumer market. Its Copper Beech imprint published 38 titles for the institutional market, 11 of which were also sold through consumer channels. Millbrook said it will continue its strategy of publishing books that can be sold in both the school and library market as well as the consumer market. To help increase sales to the trade, Millbrook uses a commissioned group that now has 25 sales representatives.

In addition to the debut of Roaring Brook Press, Millbrook said its plans for fiscal 2002 include increasing its participation in book fairs, book clubs and catalogues as well as increasing its direct selling and direct mail activities. Millbrook also intends to upgrade its Web site to provide better information about its titles to librarians; librarians can also order titles directly from the site. In addition, Millbrook is considering developing a consumer Web site "at some future date."

The filing also noted that Millbrook's agreement with netLibrary to sell 300 of its titles in electronic format has resulted in "minimal revenues."