2010 was quite a year. As a company Walch turned in record growth and profits (the best since 1993). But behind the scenes the picture was decidedly mixed.

First of all, the good news. Thanks to the input from and support of our partners, it is safe to say we are the leading high school math text in Georgia. We currently estimate that over 25,000 students across the state use our math resources, and we will be increasing our offerings significantly in 2011 (adding Math 1 and Math 4 materials to complement our Math 2 and Math 3 suites).

In Texas, North Carolina and Florida, moreover, we are helping major districts address the more rigorous Math requirements that are coming on line, and working to develop new Science materials to respond to evolving state specifications.

In all cases, our willingness to work at the state/district level to develop tailored, purpose-built, cost-effective materials, as opposed to taking the “one size fits all”, expensive and unwieldy approach of traditional publishers has held us in good stead.

We consider our districts “partners”, in the true sense of the word, not simply “customers”, and they appreciate it.

The bad news is that last year’s weak economy, particularly as it relates to state fiscal constraints and the purchasing of educational resources, will persist and perhaps worsen in 2011. We saw no significant impact from all the recovery spending last year. Who knows what effect the lack of recovery spending will have this year and next? It can’t be good.

What’s particularly troublesome, at least to me, is the federal government’s refusal to extend support to “for-profit” companies as part of the Recovery and Race to the Top funding and grants, which are solely reserved for non-profits and educational institutions. These federal government practices compete with private enterprise and discourage innovation.

A specific example: Walch has newly developed innovative materials to help reduce the need for remedial work in college. It came to my attention that a community college system had developed similar materials, and it appeared to make sense that we collaborate.

As our prospective partner became aware that we were a for-profit concern though he had to pull back: “ Unfortunately, because Walch Education and Publishing is a for profit enterprise, it will not be possible for me to share with you the research, course descriptions and publications from the ... Project.  These materials are reserved for our cooperating schools and non-profit partners.”

So in essence we are now competing instead of collaborating. It’s great to see our tax dollars used against us!

In any case, I feel confident that our innovative approach to developing and marketing tailored, purpose-built, cost-effective educational materials will continue to resonate with our district customers, and help us thrive despite the times.

Thank you.