Scientific Learning Corp. - Conference Presentation Calls

Kanawha County Schools has selected Reading Assistant(TM) from Scientific Learning Corp. to help boost the performance of struggling fourth and fifth grade readers in the district's 26 Title I elementary schools. The Reading Assistant reading intervention software combines advanced speech recognition technology with scientifically-based interventions to help students strengthen their reading fluency, vocabulary and comprehension. Reading Assistant will be a key component of the district's Response to Intervention (RtI) program, which is being expanded this year to serve students in kindergarten through fifth grade. A committee consisting of Superintendent Dr. Ron Duerring, reading specialists, principals and other administrators reviewed several programs and selected Reading Assistant to be used with Tier 2 students in the RtI program. Through its research-validated speech recognition technology, Reading Assistant 'listens' as students read aloud, and provides assistance and feedback whenever students are challenged by a word.

Scientific Learning Corp. announced unaudited earnings results for the third quarter and nine months ended September 30, 2009. Total revenues increased 60% to $20.3 million in the third quarter of 2009 compared to $12.7 million in the third quarter of 2008. Adjusted EBITDAS increased to $7.5 million in the third quarter of 2009 from $1.3 million in the third quarter of 2008. Operating income in the third quarter of 2009 was $6.8 million versus operating income of $413,000 in the third quarter of 2008. Net income was $6.4 million, or $0.35 diluted per share, in the third quarter of 2009 compared to net income of $590,000, or $0.03 diluted per share, in the third quarter of 2008. Income before income tax was $6,756,000 compared to $554,000 for the same period a year ago. Net cash provided by operating activities was $14,689,000 compared to $3,566,000 for the same period a year ago. Purchases of property and equipment, net was $67,000 compared to $7,000 for the same period a year ago. For the nine months, the company reported total revenues of $20,293,000 compared to $12,695,000 for the same period a year ago. Operating income was $3,557,000 compared to operating loss of $3,778,000 for the same period a year ago. Income before income tax was $3,647,000 compared to loss before income tax of $3,305,000 for the same period a year ago. Net income was $3,280,000 or $0.18 diluted per share compared to net loss of $4,512,000 or $0.26 diluted per share for the same period a year ago. Adjusted EBITDAS increased to $5.8 million in the nine months of 2009 from LBITDAS of $852,000 in the nine months of 2008. Net cash provided by operating activities was $10,526,000 compared to net cash used in operating activities of $5,220,000 for the same period a year ago. Purchases of property and equipment, net was $584,000 compared to $206,000 for the same period a year ago.