SkillSoft sees Q1 revenues rise

eLearning company, SkillSoft (Nasdaq: SKIL) has released Q1 results for the period ended 30 April, 2003. Total revenues for the period were USD43.6.

While this compares modestly to revenues of USD42.9m in the previous quarter, it represents a significant improvement from the USD13.8m for the same period last year.

Despite the increase in revenues, the company reported a net loss for the period. Q1 net loss was USD12.6m or USD0.13 cents per diluted share. Net income for the same period last year was USD0.01.

However, the net loss includes USD3.4m (USD0.03 per diluted share) in restructuring charges as a result of the restatement of SmartForce's financial results and costs associated with IP litigation. In addition, operating expenses for the period rose from USD13.1m last year to USD54.5.

In April, SkillSoft announced that it was to delay the filing of its fiscal 2003 financial statement with the Securities and Exchange Commission to allow it further review the accounting matters related to the former Irish company SmartForce PLC, the predecessor entity for accounting purposes in the merger between SmartForce and SkillSoft Corporation.

For the fiscal year ending January 31, 2004, SkillSoft expects revenues to be at the higher end of its previously disclosed range of between USD185.0 and USD190.0 million. It however, still expects to make a net loss for fiscal 2004 of between to USD0.22 and USD0.23 per basic and diluted share.

Commenting on the results, President and CEO, Chuck Moran said: "Our better-than-anticipated first quarter results clearly demonstrate the success of our strategy - to attract and retain customers by providing the most comprehensive e-Learning offering in the market."

He continued: "A cornerstone of our success has always been customer satisfaction, which we believe leads to higher renewal rates. We continue to make progress toward our goal of improving our renewal rates in fiscal 2004 over our fiscal 2003 reported level of 55%.

"Furthermore, our sales force - enabled with an offering no other company can match - is energized as their hard work and commitment is beginning to show in new customer wins."