Profits soar at SkillSoft

Revenue up 28%

E-learning firm SkillSoft saw its profits nearly treble in its latest set of results, which were released on Friday.

SkillSoft had net profits of $12.4m, or $0.11 per share, for the second quarter, up from $4.8m, or $0.05 per share, for the same period last year. The New Hampshire based firm's revenue for the three-month period ended 31 July was $71.5m, up 28 per cent on the second quarter of the previous year.

The main contributor to the boost in profits and revenues was the recent acquisition of former rival NETg; the new asset also gave SkillSoft a significant boost in its first quarter results.

"We are focused on the integration of NETg into SkillSoft's operations, and are confident that we can meet the cost synergy goals we set for ourselves to maximise NETg's contribution to SkillSoft's bottom line," said Chuck Moran, president and chief executive of SkillSoft.

"In fiscal 2008, we will be working with NETg customers to ensure an orderly transition as well as incurring costs to integrate NETg into SkillSoft operational processes to normalise the business as quickly as possible."

The firm increased its investment in research and development in the quarter with expenses of $11.4m incurred in the field, compared with $9.9m in the same period last year. There was also a minor increase to sales and marketing costs.

The educational software firm was formed in 2002 following the merger of Irish e-learning giant Smartforce and its smaller US rival SkillSoft.

© 2007 ENN