Navarre forecasts $7 million fiscal 2008 income

By Susanne Ault -- Video Business, 4/9/2008

APRIL 9 | Navarre Corp. is projecting upbeat earnings for its just ended fiscal 2008 and forthcoming 2009.

For fiscal 2008 ended March 31, Navarre expects to record $7 million in net income, which excludes discontinued operations. Total net sales will be approximately $650 million.

Navarre owns and distributes such DVD labels as anime specialist Funimation and budget-oriented BCI, in addition to music and computer software.

Pending the completion of a financial audit, Navarre will announce official fiscal 2008 results in early June.

For 2009, Navarre expects to improve, posting net income between $7 million and $9 million. Net sales should range between $640 million and $670 million.

In recent months, Navarre has saved expenses by fully transitioning out of its music business. It also has made advancements with its fulfillment technology, CEO Cary Deacon said.

“I am proud of the organization’s accomplishments in FY 2008,” said Deacon. “We completed the strategic and profitable sale of our independent music business. We look forward to implementing the remaining warehouse and transportation components of our SAP [vendor managed inventory] system. In light of the current economic situation, we are approaching FY 2009 conservatively and with a strong focus on asset management, while seeking incremental growth opportunities.”