Quarterly Results Off At MHE

Revenue declined 6.3%, to $1.07 billion, at McGraw-Hill Education while operating profits fell 7%, to $354 million, in the third quarter ended September 31. The drop in earnings was due in part to a $5.6 million charge the company took to cover severance costs associated with the integration of its el-hi basal publishing operations. The consolidation (Foreword, Oct. 2) eliminated some 400 jobs across the entire business segment.

Revenue in the school education group fell 12% in the quarter, to $603 million. Sales in the higher education, professional and international group rose 2.2%, to $467.2 million.

RLPG Inks Smithsonian Deal

The Rowman & Littlefield Publishing Group has signed a copublishing agreement with the Smithsonian Institution to publish academic, scholarly and reference titles under the newly formed Smithsonian Institution Scholarly Press imprint. The Smithsonian has been without a publishing arm since the Smithsonian Institution Press folded nearly two years ago. Jack Meinhardt, who will oversee SISP for RLPG, expects the first books from the co-venture to be released by the middle of next year. Since SIP folded, scholars who have done research with the Smithsonian have had to find other publishers for their work, and Meinhardt believes those experts will now publish under the SISP banner.

The agreement between RLPG and Smithsonian is separate from the deal between the organization and HarperCollins, which publishes popular nonfiction under the Smithsonian Books imprint.

Wiley Buys Whatsonwhen

John Wiley has acquired Whatsonwhen Ltd., a U.K.-based provider of travel-related online content, technology and services. The company operates the whatsonwhen.com Web site, which features a calendar of cultural events. Whatsonwhen also designs travel-related Web sites for other companies and has used content from Wiley's Frommer's unit in doing so.

Lightning Adds Presses

Lightning Source has begun installing 15 new Oce presses in a move that will increase the print-on-demand publisher's printing capacity as well as enhance its graphic and halftone capabilities.

Lightning is now producing approximately one million books per month; the new equipment will give the company the ability to print as many as three million books monthly.

Viz Merch Deal

U.S. manga publisher Viz Media has reached an exclusive agreement with Borders and teen retailer Hot Topic to offer a line of merchandise based on Bleach, Viz's popular anime and manga property. Borders and Walden stores will begin selling a hooded sweatshirt and Bleach wall scrolls immediately and in November, expand their offerings to messenger bags, T-shirts and more.

Results Flat At EDC

For the six-month period ended August 31, earnings at Educational Development Corp. were flat at $1.1 million, while revenue dipped 3%, to $14.6 million.

Earnings showed improvement in the second quarter, up to $423,989 from $394,847, although revenue was down 4.5%, to $6.5 million.

With growth stalled, EDC, which made a bid earlier this year to buy Intervisual Books, said it is continuing to explore acquisitions as a way to stimulate sales and earnings gains.

Bulzone to Sterling

Marisa Bulzone has been named editorial director of Hearst Books at Sterling Publishing. Bulzone, who was most recently executive editor at Stewart, Tabori & Chang, will be reporting to v-p and editorial director Patricia Gift in the newly created position.

B'mann Forms Venture Fund

Bertelsmann has formed a new venture capital fund and appointed Random House's Richard Sarnoff to head it. Bertelsmann Digital Media Investments will invest in emerging technologies; it will start with funding of 50 million euros. Sarnoff will serve as president while continuing in his current roles at RH.