(FORTUNE Magazine) – For most of its 66 years New York-based Scholastic earned good marks for profitability selling magazines and teaching aids to schools throughout the English-speaking world. Two years ago, however, the founder's son and successor as chief executive, Richard Robinson, rushed headlong into unknown areas -- computer software, computer magazines, and TV production. Operating losses totaled $18.2 million on $157.5 million in revenues in 1984, and Scholastic defaulted on $26 million of debt. Since then the company has cut overhead, put the start-up costs for software and Family Computing behind it, and reduced its debt from $39 million to $21 million. In fiscal 1986, Scholastic earned $5.8 million on sales of $180 million. Analysts point out that other magazine companies have been selling for one to two times sales recently; since a share of Scholastic represents about $90 of annual revenues, the stock, at $39, could grow as fast as its magazines' young readers do.