Navarre Q2 Loss Up as BCI Struggles7 Nov, 2007 By: Erik Gruenwedel
Ongoing restructuring problems with DVD distributor BCI contributed to Navarre Corp. posting a second quarter loss.
Navarre lost $400,000 during the quarter ended Sept. 30, compared to income of $1.6 million during the same period last year.
Minneapolis-based Navarre properties include publishing subsidiaries Funimation, Encore and BCI.
Navarre said it realized a $6 million comparable-year decline in distribution revenue, following a strategic decision to exit an unprofitable major studio DVD contract with an unnamed retail partner.
“BCI's results were disappointing relative to budget, as we consolidated its operations and work towards defining its niche in the DVD sector,” said Cary Deacon, CEO of Navarre, in a statement.
Deacon said the company would continue to focus efforts to reposition BCI into the Latino and budget categories.
“We continue to work towards getting BCI on track,” he said.
Overall revenues totaled nearly $144 million, compared to nearly $159 million last year.