Profit and revenue for the One drag on results was the Specialized Business Publishing segment with its $12-million operating loss, although that was down sharply from a $20.5-million loss the prior year. That segment includes BNA Subsidiaries, whose lines are Kennedy Information and IOMA. The parent put that unit into voluntary Chapter 11 for restructuring last year and it is expected to conclude the process during the current quarter.
The legal, tax, and regulatory publishing segment represented 79 percent of revenue. Revenue for that segment was $261.5 million, up 2.3 percent from $255.7 million, a big improvement from the 6 percent decline in revenue from 2009 to 2010. However, its operating margin was 18.4 percent compared to an operating margin of 35.7 percent for the software business.
A major factor in the software performance was the BNA Income Tax Planner. The company cited the combination of tax legislation and its success in "correcting license violations" as leading to higher new sales and renewal. It also saw "strong new sales" of the BNA Corporate Tax Analyzer.
Revenue from the STF Services Corp. declined by 1 percent from 2009 because of low growth in the tax forms market. However, that unit improved operating profit through process improvements and cost containment, BNA said. That reduced expenses by 2.8 percent leading to 1.3-percent increase in operating profit.
Revenue for BNA Software rose by 8.6 percent over 2010 while operating expenses were down 5.2 percent. Operating profit was $8.3 million for the year just ended compared to $5.1 million the prior year. The company did not break out revenue for BNA Software and STF,
