Overview

* Educational Development Corp ( EDUC ) fiscal Q1 revenue fell to $7.1 mln from $10.0 mln

* Net loss narrowed to $1.1 mln from $1.3 mln, reflecting cost reductions

* Company ran discount promotions to increase cash, impacting gross margins

Outlook

* Company aims to turn excess inventory to pay down debts.

* EDC expects Hilti Complex sale to retire outstanding debt balances.

* Company anticipates limited borrowing needs after Hilti Complex sale.

* EDC implementing cost savings and technology updates for future growth.

Result Drivers

* DISCOUNT PROMOTIONS - Product discount promotions aimed at increasing cash flow reduced gross margins, per CEO Craig White

* COST REDUCTIONS - Implemented cost reductions helped narrow net loss despite lower sales

* INVENTORY MANAGEMENT - Excess inventory being turned into cash to strengthen financial position and meet lender requirements

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 $7.10

Revenue mln

Q1 EPS -$0.13

Q1 Net -$1.10

Income mln

Q1 -$1.40

Pretax mln

Profit

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)