Musicland Bankruptcy Sinks Navarre FY 20061 Jun, 2006 By: Erik Gruenwedel
A $12.7 million write-off related to unpaid product from bankrupt Musicland contributed to Navarre Corp. posting a fiscal-year 2006 (ended March 31) loss of $3.1 million, compared to earnings of $10.1 million during the same period last year.
Sales for the quarter increased from $142 million to $173.2 million, and from almost $597 million to $686.1 million for the year.
Strong anime sales from recently acquired Funimation, and continued sales growth of “He-Man and the Masters of the Universe” franchise DVDs at subsidiary BCI helped Minneapolis-based Navarre report quarterly income of $1.5 million, compared to a loss of $3.9 million last year.
Overall, quarterly sales in the publishing division, which includes Funimation and BCI, among other properties, increased to almost $34 million from $21.4 million; and for the year, from almost $96 million to more than $127 million.
Distribution of first- and third-party DVD, CD and video game product, which represents more than 80% of Navarre's business, increased 10.2% to $151.5 million in the quarter, compared to $137.4 million last year. For the year, distribution sales increased to $622 million from $557 million.
“Fiscal-year 2006 has been an active year for Navarre,” said Eric Paulson, chairman and CEO of Navarre. “I am pleased with the operating results in spite of the … write-off.”