Varsity Group expects to have a record year in 2004, company chairman Eric Kuhn said in prepared remarks that accompanied Varsity's second-quarter results.
Gains will be fueled by the growth in the number of schools that are taking part in the company's eduPartners program, which acts as an online bookstore for educational institutions. Entering the third quarter, which accounts for 85% of its annual revenue, Varsity had 315 institutions signed on to the program, up from 210 at the same point last year.
For the second quarter, sales doubled to $1.1 million and the company reported net income of $519,000 compared to a net loss of $88,000 in last year's second quarter. A highlight of the quarter was the completion of Varsity's first textbook buyback program. For the first six months of the year, revenue rose 68%, to $2.9 million, and the company had earnings of $169,000, compared to a loss of $530,000 in the first six months of 2003.
Looking at the longer term, Varsity said it hopes to expand by moving "more deeply into the college and distance learning markets." Currently most of its clients are private middle and high schools.
