Press Releases & Coverage

SkillSoft Reports Second Quarter Fiscal 2009 Results and Raises Full Year Fiscal 2009 Financial Targets

    - Second Quarter Revenue of $83.3 Million and Net Income of $12.9 Million

    - Second Quarter Diluted EPS of $0.12

    - Second Quarter Adjusted EBITDA of $28.8 Million

    - Reduced Debt by $30.5 Million in the Second Quarter and Repurchased 1.5
      Million Shares for $15.0 Million

    - Cash, Restricted Cash and Investments of $85.9 Million

NASHUA, N.H., Aug. 22 /PRNewswire-FirstCall/ -- SkillSoft PLC (Nasdaq: SKIL), a leading Software as a Service (SaaS) provider of on-demand e-learning and performance support solutions for global enterprises, government, education and small to medium-sized businesses, today announced financial results for its second fiscal quarter of fiscal 2009.

Fiscal 2009 Second Quarter Results

The Company reported total revenue of $83.3 million for its second quarter ended July 31, 2008 of its fiscal year ending January 31, 2009 (fiscal 2009), which represented a 17% increase over the $71.5 million reported in its second quarter of the fiscal year ended January 31, 2008 (fiscal 2008). The Company's total deferred revenue at July 31, 2008 was approximately $166.6 million as compared to approximately $143.7 million at July 31, 2007. The 16% increase in deferred revenue reflects growth in order intake and billings from SkillSoft's core business.

On a US generally accepted accounting principles (US GAAP) basis, the Company's net income was $12.9 million, or $0.12 per diluted share, for the second quarter of fiscal 2009. Net income for the second quarter of fiscal 2009 includes income from discontinued operations (net of tax) of $2.1 million, or $0.02 per basic and diluted share, resulting from proceeds received in the second quarter of fiscal 2009 from the Company's sale of the assets related to the NETg Press business in October 2007. SkillSoft reported net income of $12.4 million, or $0.11 per diluted share, for the second quarter of fiscal 2008. Net income for the second quarter of fiscal 2008 includes a non-cash tax benefit from continuing operations of approximately $11.0 million, or $0.10 per diluted share, resulting from a $25 million deferred tax valuation allowance reduction which was partially offset by tax adjustments resulting from the purchase accounting for the NETg acquisition. The Company's US GAAP net income includes the following:

Acquisition and integration related expenses:

-- Merger related integration costs of $0.2 million in the second quarter of fiscal 2009 as compared to $8.5 million in the second quarter of fiscal 2008. The Company does not anticipate incurring significant additional merger related integration costs associated with the NETg acquisition going forward.

-- Income from discontinued operations, net of tax, of $2.1 million in the second quarter of fiscal 2009 resulting from the proceeds received from the Company's sale of the assets related to the NETg Press business in October 2007 as compared to income from discontinued operations, net of tax, of $0.5 million in the second quarter of fiscal 2008.

Non-Cash Charges:

-- Stock based compensation expense of $1.5 million in the second quarter of fiscal 2009 as compared to $1.3 million in the second quarter of fiscal 2008.

-- Depreciation and amortization expense of $1.4 million in the second quarter of fiscal 2009 as compared to $2.3 million in the second quarter of fiscal 2008.

-- Amortization of intangible assets of $4.5 million in the second quarter of fiscal 2009 as compared to $5.5 million in the second quarter of fiscal 2008.

-- Amortization of deferred financing costs of $0.4 million in the second quarter of fiscal 2009 as compared to $0.2 million in the second quarter of fiscal 2008.

-- Non-cash provision for income tax of $5.8 million in the second quarter of fiscal 2009 as compared to a non-cash $11.0 million income tax benefit in the second quarter of fiscal 2008.

"Our results for the fiscal 2009 second quarter and the first half of fiscal 2009 came in ahead of the revenue and EPS ranges we targeted, and we are encouraged by our performance. The better than targeted performance was attributable to the strength of our core business, and gives us the confidence to set our financial expectations higher for our 2009 fiscal year," said Chuck Moran, President and Chief Executive Officer. "We also obtained a favorable ruling from the Irish courts relative to our proposed capital reduction and successfully negotiated the flexibility desired from our lenders to enable us to continue to execute our share repurchase program. As a result, we anticipate using our cash for the remainder of this fiscal year to reduce debt and continue to execute our share repurchase program," commented Moran.

Gross margin increased to 86% for the Company's fiscal 2009 second quarter as compared to 85% for the fiscal 2008 second quarter. Gross margin for both the fiscal 2009 and fiscal 2008 second quarters includes amortization of intangible assets related to acquired technology and capitalized software development costs of $1.7 million. The intangible asset amortization reduced gross margin in both periods by approximately 2%.

Cost of revenue in the fiscal 2009 second quarter increased compared to the fiscal 2008 second quarter primarily due to additional royalty expense resulting from increased revenue. Also included in cost of revenue are expenses related to the transition of NETg's customers to the SkillSoft hosting platform. We expect to incur a lower amount of hosting and infrastructure expenses in the third quarter of fiscal 2009, during which we expect the transition to be completed. The gross margin is impacted mainly by the mix of royalty-bearing content and the costs incurred to augment the hosting capacity needed to meet our existing and new customer solution requirements.

Research and development expenses increased to $12.5 million in the fiscal 2009 second quarter from $11.4 million in the fiscal 2008 second quarter, but decreased as a percentage of revenue to 15% in the second quarter of fiscal 2009 as compared to 16% in the second quarter of fiscal 2008. The increase in research and development expenses was primarily due to the addition of research and development personnel and the engagement of contractors and outsource partners to support expanded product offerings and software development initiatives resulting from our larger customer base.

Sales and marketing expenses increased to $26.1 million in the fiscal 2009 second quarter from $23.7 million in the fiscal 2008 second quarter, but decreased as a percentage of revenue to 31% in the second quarter of fiscal 2009 as compared to 33% in the second quarter of fiscal 2008. The increase in sales and marketing expenses was primarily due to the addition of direct sales, telesales and sales support personnel to support our larger customer base as well as higher commission expense.

General and administrative expenses increased to $9.4 million in the fiscal 2009 second quarter from $9.0 million in the fiscal 2008 second quarter, but decreased as a percentage of revenue to 11% in the second quarter of fiscal 2009 as compared to 13% in the second quarter of fiscal 2008. The increase in general and administrative expenses was primarily due to approximately $0.5 million of professional expense incurred in connection with an on-going feasibility analysis related to our business realignment strategy.

The SEC staff has not closed its informal investigation concerning the option granting practices at SmartForce for the period beginning April 12, 1996 through July 12, 2002, prior to its merger in September 2002 with SkillSoft. There were no restatement charges relating to the ongoing SEC investigation in the fiscal 2009 second quarter as compared to $0.4 million of expenses incurred in the fiscal 2008 second quarter.

Operating expenses for the fiscal 2009 second quarter include approximately $1.5 million of stock-based compensation expense. The allocation of such stock-based compensation expense for the fiscal 2009 second quarter was as follows: cost of revenue, $67,000; research and development, $231,000; sales and marketing, $444,000; and general and administrative, $736,000. By comparison, operating expenses for the fiscal 2008 second quarter included approximately $1.3 million of stock-based compensation expense. The allocation of such stock-based compensation expense for the fiscal 2008 second quarter was as follows: cost of revenue, $48,000; research and development, $225,000; sales and marketing, $369,000; and general and administrative, $631,000.

The Company's interest income and other expense decreased to $0.2 million for the fiscal 2009 second quarter as compared to $0.5 million for the second quarter of fiscal 2008. This decrease was primarily due to a loss on foreign currency exchange rates and a decrease in interest income attributable to an overall decline in interest rates. The Company's interest expense decreased to $3.3 million for the fiscal 2009 second quarter as compared to $3.8 million for the second quarter of fiscal 2008. This decrease is primarily due to principal payments made during the period resulting from a reduction in our outstanding debt during the fiscal 2009 second quarter.

The Company's effective tax rate from continuing operations was 38.9% for the six month period ended July 31, 2008 and consisted of a cash tax provision of approximately $2.0 million (6.8%) and a non-cash tax provision of approximately $9.4 million (32.1%). This compares to an $8.2 million (73.2%) tax benefit for the six month period ended July 31, 2007, which consisted of a cash tax provision of approximately $1.0 million (8.9%) and a non-cash tax benefit of approximately $9.2 million or (82.1%) from continuing operations. The increase in the current year effective tax rate is primarily due to geographic distribution of worldwide earnings as well as the second quarter of fiscal 2008 non-cash tax benefit of approximately $25 million from the reduction in the Company's US deferred tax valuation allowance. The aforementioned benefit was partially offset by non-cash tax adjustments required as a result of purchase accounting for the NETg acquisition.

As a reminder, an important leverage covenant included in our credit facility is adjusted EBITDA. Adjusted EBITDA for the fiscal 2009 second quarter was $28.8 million and our trailing 12 month debt to adjusted EBITDA ratio was approximately 1.48. Adjusted EBITDA for the fiscal 2009 second quarter is calculated by taking net income ($12.9 million) and adding back depreciation and amortization ($1.4 million), amortization of intangible assets and capitalized software development costs ($4.5 million), stock-based compensation ($1.5 million), restatement expenses ($0.0 million), merger and integration related expenses ($0.2 million), IP migration feasibility expense ($0.5 million), interest expense ($3.3 million), and the provision for income taxes ($6.8 million), and deducting income from discontinued operations ($2.1 million) and interest income net of other expense ($0.2 million).

SkillSoft had approximately $85.9 million in cash, cash equivalents, short-term investments, restricted cash and long-term investments as of July 31, 2008 as compared to $93.5 million as of January 31, 2008. This decrease primarily reflects long term debt repayments of $24.4 million and $30.5 million in the first and second quarter of fiscal 2009, respectively; payments of $12.2 million and $15.0 million in the first and second quarters of fiscal 2009, respectively, to repurchase shares under our shareholder approved repurchase program; and investments of $9.7 million and purchases of property and equipment of $2.7 million in the six months ended July 31, 2008. These amounts were partially offset by cash provided by continuing operations of $60.2 million; proceeds from the exercise of stock options and employee stock purchase activity of $10.0 million; investment maturities of $15.2 million; and cash provided from discontinued operations of $6.9 million which is primarily comprised of proceeds from the sale of NETg Press in the six months ended July 31, 2008.

In order to adequately assess the Company's collection efforts, taking into account the seasonality of the Company's business, the Company believes that it is most useful to compare current period days sales outstanding (DSOs) to the prior year period. Given the quarterly seasonality of bookings, the deferral from revenue of subscription billings may increase or decrease the DSOs on sequential quarterly comparisons.

SkillSoft's DSOs were in the targeted range for the fiscal 2009 second quarter. On a net basis, which considers only receivable balances for which revenue has been recorded, DSOs were 15 days in the fiscal 2009 second quarter as compared to 14 days in the year ago period and 19 days in the first quarter of fiscal 2009 (which is a correction to our first quarter fiscal 2009 release dated May 23, 2008 which stated our net DSO was 12 days). On a gross basis, which considers all items billed as receivables, DSOs were 89 days in the fiscal 2009 second quarter compared to 108 days in the year ago quarter and 109 days in the first quarter of fiscal 2009.

FISCAL 2009 AND FISCAL 2009 THIRD QUARTER OUTLOOK

The Company, based on its reported fiscal 2009 first and second quarter performance, is now targeting fiscal 2009 revenue to be in the range of $335.0 million to $338.0 million. In the Company's press release dated May 23, 2008, fiscal 2009 revenue was targeted to be in the range of $329.0 million to $336.0 million.

In addition, given the new fiscal 2009 targeted revenue range and the $2.1 million of income received from discontinued operations (net of tax) in the fiscal 2009 second quarter, the Company anticipates that its adjusted net income for fiscal 2009 will be between $38.0 million and $41.0 million, or $0.35 to $0.38 per basic and diluted share. In the Company's press release dated May 23, 2008, fiscal 2009 adjusted net income was targeted to be in the range of $35.0 million to $38.0 million, or $0.32 to $0.35 per basic and diluted share.

Adjusted net income represents GAAP net income, excluding foreign exchange gains or losses and gains or losses from discontinued operations. The most significant non-cash items included in targeted adjusted net income are the following: (1) amortization of intangible assets of approximately $16.5 million; (2) depreciation and amortization of approximately $5.5 million to $6.5 million; (3) a non-cash tax provision of approximately $18.0 million to $19.0 million; (4) stock-based compensation expense of approximately $6.0 million; and (5) amortization of deferred financing costs of approximately $1.0 million.

Adjusted net income and adjusted EBITDA are non-GAAP financial measures within the meaning of applicable SEC regulations. SkillSoft is presenting these measures (for both fiscal 2009 and the fiscal 2009 third quarter) because it is currently unable to estimate the amount of foreign exchange gains or losses and it believes that presenting these measure presents investors and debt holders with meaningful information about the Company's historical and projected operating performance for fiscal 2009.

For the third quarter of fiscal 2009 ending October 31, 2008, the Company currently anticipates revenue to be in the range of $84.0 million to $85.5 million. The Company also anticipates adjusted net income for the fiscal 2009 third quarter to be between $9.5 million and $10.5 million, or $0.09 to $0.10 per basic and diluted share. The most significant non-cash items included in targeted adjusted net income are the following: (1) amortization of intangible assets of approximately $4.4 million to $4.5 million; (2) depreciation and amortization of approximately $1.5 million to $1.7 million; (3) a non-cash tax provision of approximately $4.25 million to $4.75 million; (4) stock-based compensation expense of approximately $1.4 million to $1.6 million; and (5) amortization of deferred financing costs of approximately $0.25 million to $0.35 million.

The Company, based on its fiscal 2009 first half performance, is now targeting adjusted EBITDA for fiscal 2009 to be in the range of $101.0 million to $103.0 million. Adjusted EBITDA for fiscal 2009 in this range is expected to result in a debt to adjusted EBITDA ratio of approximately 1.4. In the Company's press release dated May 23, 2008, fiscal 2009 adjusted EBITDA was targeted to be in the range of $96.0 million to $100.0 million. Adjusted EBITDA in the targeted range for fiscal 2009 will result in growth of approximately 26% to 29% as compared to fiscal 2008. The adjusted EBITDA targeted range for fiscal 2009 is calculated by taking targeted net income ($38.0 million to $41.0 million) and adding back depreciation and amortization ($5.0 million to $7.0 million), amortization of intangible assets and capitalized software development costs (approximately $16.0 million to 17.0 million), stock-based compensation (approximately $5.5 million to 6.5 million), restatement expenses (approximately $0.2 million), merger and integration related expenses (approximately $0.8 million), IP migration feasibility expense ($1.1 million), interest expense ($13.5 million to $14.0 million) and the provision for income taxes ($22.0 million to $24.0 million), less income from discontinued operations (approximately $2.0 million), and interest income and other income/expense ($0.2 million to $0.3 million).

The fiscal 2009 earnings outlook also does not take into account the potential positive or negative impact from foreign exchange rates, potential adjustments from the impact of our international NOL valuation reserves or international deferred tax asset utilization, the potential negative impact of the resolution of litigation matters, potential restructuring charges or the potential impact of any future acquisitions or divestitures (excluding the NETg acquisition), including potential non-recurring acquisition related expenses and the amortization of any purchased intangibles and deferred compensation charges resulting from an acquisition transaction (excluding the NETg acquisition). The outlook also does not take into account the effect of a public offering or other financing arrangement, our share buyback program or debt restructuring that could impact interest income/expenses and/or outstanding shares and thereby the Company's EPS outlook.

Supplemental financial information will be available on SkillSoft's web site www.skillsoft.com at the time of our earnings call.

Conference Call

In conjunction with this release, management will conduct a conference call on Friday, August 22, 2008 at 8:30 a.m. ET to discuss the Company's second quarter fiscal 2009 financial and operating results. Chuck Moran, President and Chief Executive Officer, and Tom McDonald, Chief Financial Officer, will host the call.

To participate in the conference call, local and international callers can dial (973) 582-2717. The live conference call will be available via the Internet by accessing the SkillSoft Web site at www.skillsoft.com. Please go to the Web site at least fifteen minutes prior to the call to register, download and install any necessary audio software.

A replay will be available from 12:01 p.m. ET on August 22, 2008 until 11:59 p.m. ET on August 29, 2008. The replay number is (800) 642-1687, passcode: 60842846. A webcast replay will also be available on SkillSoft's Web site at www.skillsoft.com.

About SkillSoft

SkillSoft PLC (Nasdaq: SKIL) is a leading SaaS provider of on-demand e-learning and performance support solutions for global enterprises, government, education and small to medium-sized businesses. SkillSoft enables business organizations to maximize business performance through a combination of comprehensive e-learning content, online information resources, flexible learning technologies and support services.

Content offerings include business, IT, desktop, compliance and consumer/SMB courseware collections, as well as complementary content assets such as Leadership Development Channel video products, KnowledgeCenter(TM) portals, virtual instructor-led training services and online mentoring services. SkillSoft's Books24x7(R) product offering includes access to more than 18,000 digitized IT and business books, as well as book summaries and executive reports. Technology offerings include the SkillPort(R) learning management system, Search-and-Learn(R), SkillSoft(R) Dialogue(TM) and virtual classroom.

SkillSoft courseware content described herein is for information purposes only and is subject to change without notice. SkillSoft has no obligation or commitment to develop or deliver any future release, upgrade, feature, enhancement or function described in this press release except as specifically set forth in a written agreement.

SkillSoft, the SkillSoft logo, SkillPort, Search-and-Learn, SkillChoice, Books24x7, ITPro, BusinessPro, OfficeEssentials, GovEssentials, EngineeringPro, FinancePro, AnalystPerspectives, ExecSummaries, ExecBlueprints, Express Guide and Dialogue are trademarks or registered trademarks of SkillSoft PLC in the United States and certain other countries. All other trademarks are the property of their respective owners, countries.

This release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements. Factors that could cause or contribute to such differences include challenges in integrating the operations of NETg, competitive pressures, changes in customer demands or industry standards, adverse economic conditions, loss of key personnel, litigation and other risk factors disclosed under the heading "Risk Factors" in SkillSoft's Quarterly Report on Form 10-Q for the quarterly period ended April 30, 2008 as filed with the Securities and Exchange Commission. The forward-looking statements provided by the Company in this press release represent the Company's views as of August 22, 2008. The Company anticipates that subsequent events and developments may cause the Company's views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this release.



                        SkillSoft PLC and Subsidiaries
               Condensed Consolidated Statements of Operations
          (Unaudited, In Thousands Except Share and Per Share Data)


                                Three Months Ended         Six Months Ended
                                      July 31,                  July 31
                                 2008         2007         2008         2007

    Revenues                   $83,332      $71,469     $164,975     $128,609
    Cost of revenues (1)         9,830        8,718       18,639       15,546
    Cost of revenues -
     amortization of
     capitalized software
     development costs           1,740        1,744        3,480        1,942

      Gross profit              71,762       61,007      142,856      111,121

    Operating expenses:
      Research and
       development              12,519       11,364       25,998       21,605
      Selling and
       marketing                26,099       23,714       55,798       46,262
      General and
       administrative            9,433        8,998       18,324       16,126
      Amortization of
       intangible assets         2,741        3,741        5,737        4,320
      Merger and
       integration related
       expenses                    240        8,493          761        8,528
      Restructuring                  -            -            -            -
      SEC investigation            (13)         351           49        1,223

    Total operating expenses    51,019       56,661      106,667       98,064

    Other expense, net            (347)        (251)      (1,034)        (383)
    Interest income                575          728        1,192        2,336
    Interest expense            (3,311)      (3,762)      (7,013)      (3,814)

    Income before
     provision for income
     taxes from continuing
     operations                 17,660        1,061       29,334       11,196

    Provision for income
     taxes - cash                1,024          236        1,965        1,007
    Provision for income
     taxes - non-cash            5,821      (11,039)       9,387       (9,164)

    Income from continuing
     operations                 10,815       11,864       17,982       19,353

    Income from
     discontinued operations,
     net of income tax expense
     of $1.4 million and $1.3
     million for the three and
     six months ended July 31,
     2008, respectively          2,067          524        1,974          524

    Net income                 $12,882      $12,388      $19,956      $19,877


    Net income, per share,
     basic - continuing
     operations                  $0.10        $0.11        $0.17        $0.19
    Net income, per share,
     basic - discontinued
     operations                  $0.02        $0.01        $0.02        $0.01
                                 $0.12        $0.12        $0.19        $0.19

    Basic weighted average
     common shares
     outstanding           104,877,548  104,400,895  105,081,727  103,848,299

    Net income, per share,
     diluted - continuing
     operations                  $0.10        $0.11        $0.16        $0.18
    Net income, per share,
     diluted -
     discontinued
     operations                  $0.02        $0.00        $0.02        $0.00
                                 $0.12        $0.11        $0.18        $0.18

    Diluted weighted
     average common shares
     outstanding           108,712,224  108,423,593  109,231,394  107,739,609

      (1) The following
          summarizes the
          departmental
          allocation of the
          stock-based
          compensation

          Cost of revenues         $67          $48         $111          $65
          Research and
           development             231          225          468          433
          Selling and
           marketing               444          369        1,022          867
          General and
           administrative          736          631        1,481        1,264
                                $1,478       $1,273       $3,082       $2,629



                                SkillSoft PLC
                    Condensed Consolidated Balance Sheets
                          (Unaudited, In Thousands)

                                             July 31, 2008    January 31, 2008

    ASSETS

    CURRENT ASSETS:
        Cash, cash equivalents and short-
         term investments                          $81,969           $89,584
        Restricted cash                              3,960             3,963
        Accounts receivable, net                    80,555           171,708
        Deferred tax assets                         10,326            13,476
        Prepaid expenses and other
         current assets                             29,384            29,061

    Total current assets                           206,194           307,792

        Property and equipment, net                  7,038             7,210
        Goodwill                                   257,519           256,196
        Acquired intangible assets, net             20,670            29,887
        Deferred tax assets                         80,244            87,866
        Other assets                                 3,799             7,730

    Total assets                                  $575,464          $696,681


    LIABILITIES AND STOCKHOLDERS' EQUITY

    CURRENT LIABILITIES:

        Current maturities of long term debt        $1,455            $2,000
        Accounts payable                             3,510             2,139
        Accrued expenses                            32,914            54,084
        Deferred revenue                           166,582           219,161

    Total current liabilities                      204,461           277,384

        Long term debt                             142,605           197,000
        Other long term liabilities                  7,823             9,209
    Total long-term liabilities                    150,428           206,209

    Total stockholders' equity                     220,575           213,088

    Total liabilities and stockholders' equity    $575,464          $696,681



                                  SkillSoft PLC
                 Condensed Consolidated Statements of Cash Flows
                            (Unaudited, In Thousands)


                                                       Six Months Ended
                                                           July 31,
                                                     2008              2007

    Cash flows from operating activities
     from continuing operations:

         Net income, continuing operations         $17,982           $19,353
         Adjustments to reconcile net
          income to net cash provided by
          operating activities:
         Stock-based compensation                    3,082             2,629
         Depreciation and amortization               2,862             4,009
         Amortization of acquired
          intangible assets and capitalized
          software development costs                 9,218             6,262
         Recovery of bad debts                          48                54
         Provision for income taxes - non-cash         636            (9,164)
         Non-cash interest expense                   9,387               226
         Tax benefit related to exercise
          of non-qualified stock options               500                 -
         Changes in current assets and
          liabilities, net of acquisitions
           Accounts receivable                      88,805            41,818
           Prepaid expenses and other
            current assets                            (965)            4,942
           Accounts payable                          1,092               (50)
           Accrued expenses (including
            long-term):
             Accrued merger                         (1,370)           (6,450)
             Accrued restructuring                    (232)             (140)
             Accrued other                         (18,204)          (23,020)
           Deferred revenue                        (52,959)          (30,463)
           Deferred tax asset                          281                 -


         Net cash provided by operating
          activities from continuing
          operations                                60,163            10,006

    Cash flows from investing activities
     from continuing operations:

         Purchases of property and
          equipment                                 (2,687)           (1,888)
         Cash paid for business
          acquisitions                                (250)         (278,923)
         Purchases of investments                   (9,745)           (1,000)
         Maturity of investments                    15,237            37,973
         Release of restricted cash                      5            16,090

         Net cash (used in) provided by
          investing activities from
          continuing operations                      2,560          (227,748)

    Cash flows from financing activities
     from continuing operations:

         Exercise of stock options                   7,769             8,122
         Proceeds from employee stock
          purchase plan                              2,185             1,088
         Principal payment on long term debt       (54,940)          194,133
         Payments to acquire treasury stock        (27,171)                -

         Net cash (used in) provided by
          financing activities from
          continuing operations                    (72,157)          203,343

         Change in cash from discontinued
          operations                                 6,942               240

         Effect of exchange rate changes
          on cash and cash equivalents                 304             1,097

         Net increase in cash and cash
          equivalents                               (2,188)          (13,062)
         Cash and cash equivalents,
          beginning of period                       76,059            48,612

         Cash and cash equivalents, end of
          period                                   $73,871           $35,550

SOURCE  SkillSoft PLC
    -0-                             08/22/2008
    /CONTACT:  Tom McDonald, Chief Financial Officer of SkillSoft PLC,
+1-603-324-3000, x4232; Investors, Michael Polyviou, or Peter Schmidt, both of
Financial Dynamics, +1-212-850-5748/
    (SKIL)

CO:  SkillSoft PLC
ST:  New Hampshire
IN:  STW CPR
SU:  ERN ERP CCA

AR-CT
-- NYF009 --
7510 08/22/2008 07:00 EDT http://www.prnewswire.com