Following a stronger start than expected when it launched its book publishing unit in mid-2002, sales at Integrity Media's book group for the first half of 2003 failed to meet expectations. According to its filing with the Securities and Exchange Commission, Integrity Publishers' sales in the first six months of the year were $2.3 million, and the division had an operating loss of $656,000. Integrity Publishers, headed by Byron Williamson, had revenue of $4.1 million in the second half of 2002.
Sales were especially weak in the second quarter when Integrity Publishers generated only $215,000 in revenue. The company attributed the poor performance to the lack of new releases in the quarter, higher than expected returns and a weak retail environment, particularly in the CBA marketplace. Soft sales through the CBA channel also hurt sales in Integrity's music business, its most important segment.
Integrity president Michael Coleman said the company expects sales in the book group to improve in the second half of the year when several new titles are set to be released. He added, however, that while Integrity "has been very pleased with the number and caliber of Christian authors that have signed on with Integrity Publishers in recent months, our expectations do not assume any blockbuster releases in the second half of 2003."
