School Specialty posted a net loss of $21.6 million for the third, compared to a net loss of $20.3 million in the prior year.

The institutional school supplies marketer reported revenue for the third quarter of fiscal 2009 of $121.7 million, a 9.7% decline from $134.8 million last year.

The Greenville, WI firm reported gross margin of 35.6% in the quarter, a decline from 38.3% in the prior year.

The firm reported selling, general and administrative expenses of $73.3 million for the quarter, a 56.8% decrease from $76.6 million last year.

“Schools have been very cautious in their spending, preserving their remaining budgets as they await decisions on next year’s state education funding,” said David Vander Zanden, CEO, in a statement. “The states now have certainty as to the benefits of President Obama’s economic stimulus package, and the governors’ proposed budgets will be released over the next few weeks. We expect state education funding to improve significantly in these proposed budgets as compared to the states’ previously released budget estimates.”

School Specialty reported a net loss of $32.6 million for the fourth quarter compared to a net loss of $8.5 million last year.

The school supplies direct marketer attributed these results to