Navarre Posts Record Q2 Despite Tower Bankruptcy30 Oct, 2006 By: Erik Gruenwedel
Strong fantasy animation DVD sales of the 13th “Dragon Ball Z" film Wrath of the Dragon and Fullmetal Alchemist the Movie: Conqueror of Shamballa helped Navarre Corp. post second quarter fiscal year 2007 (ended Sept. 30) profit of $1.6 million compared to a loss of $75,000 during the same period last year.
The Minneapolis-based distributor posted net income despite recording a $2 million write-off in receivables associated with the bankruptcy of Tower Records.
Navarre generated record revenues of $173.1 million, up $15 million or 9.5% from $158.1 million last year.
The distributor said it would take steps to improve the DVD release schedule for units Encore and BCI after non-anime DVD and related software sales finished down.
Separately, Navarre announced a third-party software distribution agreement with OfficeMax.
“I am pleased with the continued growth of our company as we approach the holiday selling season and year-over-year improvement in net sales and earnings, in spite of the impact of the Tower bankruptcy,” said chairman and CEO Eric Paulson in a statement.
Paulson and other Navarre executives will hold an investor call Oct. 31.