Videogames, anime lift Navarre income

Revenue rose 18.5% in latest quarter

By Susanne Ault -- Video Business, 10/30/2008

OCT. 30 | Navarre Corp. posted overall earnings gains for its fiscal 2009 second quarter, driven by strong videogame distribution and anime DVD sales.

For the three months ended Sept. 30, Navarre recorded $1.3 million in net income, six and a half times more than what the company earned for the same frame in its prior fiscal year.

Total revenue rose 18.5% to $170.3 million.

The company notes that these are preliminary results, pending its analysis of a possible non-cash charge to goodwill.

Fueled by videogames, Navarre’s distribution division delivered a robust performance, with sales rising 18.9% to $158.5 million. This division also distributes PC software and DVDs to retail. Navarre discontinued its music business in May 2007.

Navarre’s propriety publishing unit, which includes the anime label Funimation, also grew during the period. The division lifted 6.5% to $28.8 million. Funimation was powered by a number of new releases in the quarter, as well as new digital distribution agreements.

“In spite of a very difficult economic climate, the company demonstrated solid top-line revenue growth in the quarter,” Navarre CEO Cary Deacon said. “Distribution more than doubled its sales of videogames and experienced strong sales of utility software products in the quarter, due in part to some major releases moving earlier than anticipated. The publishing segment saw significant increases in its sales of anime content, which was responsible for our year over year profit improvement.”