Acknowledging that 1998 was "the most difficult year in the company's 23-year history," Intervisual Books Inc. chairman Waldo Hunt remained optimistic that the company is poised for "growth and profitability" over the next two years. Total revenues in 1998 fell 40% to $11.2 million; the company reported a net loss of $2.3 million, compared to 1997's loss of $73,565.
Company president Norm Sheinman noted that the company had been hurt the entire year by consolidation in the U.S. publishing industry, which resulted in the loss of several key accounts, as well as by the Asian financial crisis. The company's major initiative to restore profitability is its pending acquisition of the distribution company Fast Forward (News, Feb. 15); the deal is set to close this month. In addition to broadening its distribution among physical retailers, IBI expects the Fast Forward purchase to expand its presence on the Internet.
IBI also hopes to improve results by having its self-published books generate about half of its total sales this year. In addition, IBI is arranging for additional financing and has already negotiated more favorable terms from its major suppliers.
