A jump in sales to bookstores and the education market plus the inclusion of results from its new Studio Mouse imprint combined to boost revenue at Trudy Corp. 29.9%, to $4.4 million for the fiscal year ended March 31. Despite the revenue gain, higher costs resulted in a net loss in the year of $314,706, compared to $40,170 in fiscal 2002. The biggest factor in the increase in sales and expenses was the jump in title output in the year, from 14 to 35.
Sales at Trudy's Soundprints division increased 7.2%, to $3.6 million, with the balance generated by the Studio Mouse division. In its year-end filing with the Securities and Exchange Commission, Trudy said that the introduction of paperback editions of the Smithsonian Backyard and Oceanic Collection series boosted sales to bookstores. Sales to schools were aided by the inclusion of 84 Soundprints titles as part of the Accelerated Readers program, which helped the company open new accounts. On the debit side, the revamping of Trudy's direct-mail programs to consumers, schools and libraries resulted in lower direct marketing sales. Sales to mass merchandisers were also off in the year, although the addition of more frontlist titles through Studio Mouse resulted in a 10% sales increase to toy and gift stores and other specialty retailers.
In its SEC filing, Trudy noted that as it expands its operations in an effort to reach profitability, it continues to suffer from a lack of working capital. During fiscal 2003, the company received $1.3 million in funding from two of its principal shareholders; to look for more outside financing options the company has hired Delta Capital Group.
