Sales of $1.4 million to mass merchants and warehouse clubs helped to drive total revenues up $134%, to $3.4 million, at Trudy Corp. for the fiscal year ended March 31, 2002. A direct-mail campaign by Trudy, parent company of the Soundprints children's publishing program, generated nearly $625,000 in revenues, but the effort did not meet its objectives largely because the mailing was sent during the height of last fall's anthrax scare. Sales to bookstores, toy stores and museums rose 6% in the year, to $1.4 million.
Despite the jump in sales, Trudy had a net loss of $40,170 in the year and its auditors said in Trudy's 10-k filing with the Securities and Exchange Commission that because of recurring losses, a deficiency in working capital and a deficiency in net assets, the company's ability to survive as a going concern was in doubt. Trudy acknowledged its financial problems, but said the recent improvement in sales as well as its ability to borrow money will allow it to continuing operating. Trudy received some good news when its principal licensee, the Smithsonian, extended its agreement to September 30, 2007. Smithsonian-related product accounted for 59% of Trudy's sales last year.
