At the ELCA Church Council’s April 13-16 meeting in Chicago, Augsburg Fortress reported a surplus “for the first time in almost a decade.” The ELCA publishing ministry’s written report placed 2006 net sales at $44,250,000 and 2006 combined expenses at $44,230,000.
“The sale of Evangelical Lutheran Worship resources in the U.S. totaled over $6,200,000 in 2006, which greatly exceeded our forecasted sales of $1,000,000,” the report said.
Using accounting rules that allow Augsburg Fortress to defer revenue to future years, the company reported a lower than actual 2006 net income ($179,000), and reduced “operating income by approximately $600,000,” the report read.
Augsburg Fortress will prorate the revenue for one-, two- and three-year memberships of online hosted products such as Herewestandconfirmation.org and Akaloo.org, and spread the cost to develop those products “over four years.”
© 2014 Augsburg Fortress, Publishers