Because of an "unfavorable $35 million foreign exchange impact," John Wiley & Sons' fiscal year 2009 third quarter Scientific, Technical, Medical, and Scholarly (STMS) revenue was down 13% to $202 million; however, on a "currency neutral basis," revenue grew 2%. (Wiley's fiscal year runs from May 1 to April 30.)
Here's an excerpt from the press release:
Journal subscription revenue was on par with prior year, as revenue from new journals was partially offset by the aforementioned processing delays and lower backfile sales. STMS book sales improved in markets outside the US. Publishing areas that exhibited significant growth include the life sciences, professional, and the social sciences and humanities.
The journal subscription renewal delays were related to the consolidation of Wiley and Blackwell fulfillment systems and licensing practices, which is the last significant integration project and one of the most complex undertakings in the overall process. While the problems that caused the delays were substantially resolved by the end of the quarter, some of the processing backlog remained. Approximately $7 million of revenue on yet-to-be processed customer journal licenses will be earned in the fourth quarter. The delays also affected cash collections through January. . . .
For the first nine months of fiscal year 2009, global STMS revenue was flat with prior year at $696 million, but advanced 6%, excluding unfavorable foreign exchange. Contributing to the year-over-year growth was a $17 million acquisition accounting adjustment related to the Blackwell acquisition that reduced revenue in the comparable prior year period, as well as increased journal revenue. All regions exhibited growth. Direct contribution to profit for the first nine months rose 4% to $277 million, or 10% excluding unfavorable foreign exchange. The increase reflects higher journal subscription revenue and prudent expense management, partially offset by editorial costs associated with new journals and the aforementioned delay in journal subscription renewals.
Wiley's FY 2008 results are summarized in its "John Wiley & Sons, Inc. Reports Record Revenue and Earnings in Fiscal Year 2008" press release.