Navarre Posts 4Q Loss5 Jun, 2007 By: Erik Gruenwedel
Navarre Corp. posted fourth quarter (ended March 31) losses of $2.2 million, compared to profits of $1.1 million during the same period last year.
The losses are a result of higher than expected DVD returns at its BCI subsidiary, coupled with soft sales of non-entertainment brands at its Encore unit.
Contributing to the loss was $1.6 million in costs related to debt refinancing, and $600,000 in write offs of pre-acquisition account receivables from the Funimation anime DVD division.
The anime unit did post nearly a 48% increase in sales based in part on software title sales of Fullmetal Alchemist, Robotech, “Dragon Ball Z” season sets, Trinity Blood and Basilisk.
Net sales were negatively impacted by shifting the DVD release of Afro Samurai to the first quarter 2008.
The Minneapolis-based distributor reported a 2% decline in net sales to $168.6 million, compared to $171.9 million last year.