Texas Testing Contract Only the Latest Worry for Pearson

PEARSON TEST RESULTS: Like a student anxious about her future, Pearson is nervously waiting to see whether Texas will renew its testing contract with the publisher, which according to the Telegraph is worth around $500 million--a healthy chunk of its North American revenues. It's yet another test for Pearson CEO John Fallon, who's had to cut profit projections and personnel as part of a company-wide reshuffling and transition to digital and emerging markets. (Here's our interview with him from 2013.) Some of its digital products so far have underwhelmed: A scathing report published in the wake of the Los Angeles iPad fallout questioned the quality of the Pearson curriculum on the devices.

Editor's note: The post originally stated that the Texas contract accounts for 59% of Pearson's North American revenues. Instead, it's more likely that North America accounts for 59% of Pearson's overall revenue. This has been corrected.