About Rosetta Stone Ltd.
Cambium cells carry nutrients and form the bark and wood of a tree, and Cambium Learning Group carries educational materials to schools to help students succeed. Operating through its Voyager Learning, Sopris Learning, and Learning A-Z business units, the company provides comprehensive reading and math programs, as well as academic support services for pre-K through 12th grade students, particularly those who are at risk or have special learning needs. Its products include instructional software, print materials, and interactive online tools. Cambium primarily offers these products and services to school districts across the US. Veritas Capital acquired Cambium for $685 million in late 2018.
Change in Company Type
In October 2018, Cambium agreed to be taken private by private equity firm Veritas Capital for some $685 million. Previously, the publicly traded Cambium was 70%-owned by another investment firm, Veronis Suhler Stevenson.
Cambium Learning Group provides educational tools aimed at underperforming students and schools. The company's instructional materials and technology platforms are research-based and culturally responsive, intended to supplement existing teaching methods and school curricula.
The company divides its operations into three reporting units: Learning A-Z, which brings in more than 45% of total revenue; Voyager Sopris Learning, which brings in about 35% of revenue; and ExploreLearning, which brings in roughly 20% of revenue.
Each of the segments administers classes and services online and via electronic supplemental materials. Learning A-Z provides web-based reading, writing, and science tools. Voyager Sopris Learning offers curriculum, professional development, literacy technology, and related solutions for educators. ExploreLearning specializes in online math and science tools.
Foreign sales only account for less than 10% of Cambium's total revenue. The company's Dallas headquarters also serves as the primary location for the Voyager Sopris Learning segment. The Learning A-Z segment is headquartered in Tucson, Arizona, and the ExploreLearning segment is headquartered in Charlottesville, Virginia. Cambium has additional locations in Michigan, Colorado, and Georgia.
Sales and Marketing
Cambium employs some 140 direct sales people. The company also sells its products online. Internationally, it uses re-sellers and independent sales personnel.
Most of Cambium's sales are to US public school districts, but it also sells its products abroad. Other customers include private and charter schools, teachers, home school and other parents, and other companies that sell Cambium's products in combination with their own.
Advertising expenses totaled $1.7 million in 2017 and $1.3 million in 2016.
Cambium's revenues have been climbing for the past three years, marking a bit of a turnaround from the lower sales which had been seen across nearly all product lines. And after losing money for eight straight years, the company turned a profit in 2016 (and again in 2017).
Revenue increased 4% to $158.2 million in 2017 as Learning A-Z's sales rose 14% and ExploreLearning's sales rose 17%. Voyager Sopris Learning's sales declined by 12%, largely due to the company's shift away from its legacy print and transactional offerings. However, that segment's digital LANGUAGE! Live product saw 20% growth that year.
The company has been cutting its cost of revenues across all areas, which helped net income more than quadruple to $45.1 million in 2017. A $29.3 million tax benefit also boosted earnings.
Operating cash flow rose 11% to $49.2 million as a reflection of Cambium's improved operational results and its more conservative use of cash.
Cambium's strategies for growth are centered around modernizing its portfolio with higher-margin, technology-based products. These offerings account for some 80% of its total bookings (a measure of the total dollar value of customer orders in a period and a key indicator of revenues). The company invests in the development of adaptable and individualized programs that can serve students of all abilities worldwide. Cambium is also focusing efforts on cybersecurity and ensuring that students who use its products are protected.
The firm is cautiously building up its sales and marketing capabilities, while keeping an eye on costs of sales.
Cambium restructured the Voyager Sopris Learning segment in 2016 and 2017 to reduce costs and continue the move away from its declining legacy print products.
Cambium was formed in late 2009 by the merger of Cambium Learning and Voyager Learning Company.
135 W Market St
Harrisonburg, VA 22801-3710
Phone: 1 (540) 432-6166
Employer Type: Privately Owned
Senior Director: Matthew Engeln
Vice President Marketing: Andy Mead
Vice President of Information Technology: Mark Moseley
Employees (This Location): 360
Employees (All Locations): 400
Mount Crawford, VA