This is quite an improvement from the previous season, when the company posted an operating deficit of $3.8 million. Even that deficit was a step up from the previous year's deficit of $7.6 million, and was accomplished by staff reduction, two weeks' unpaid vacation, and a rearrangement of the season, including canceling one production and replacing an expensive new production with a less-costly revival.

Of the most recent results, outgoing general director Pamela Rosenberg said, "I am pleased with our success last year. We have made substantial progress in our plan to put this company back on solid financial footing. We have made significant reductions in expenses and have received extraordinary support from our board of directors and donors."

She acknowledged, however, that the company still faces significant financial challenges, including selling more tickets and attracting new audiences.

Rosenberg will step down at the beginning of 2006, to be replaced by David Gockley, currently general director of the Houston Grand Opera. Gockley's first full season will begin in September 2006.