MINNEAPOLIS, May 26, 2004 /PRNewswire-FirstCall via COMTEX/ -- Navarre Corporation (NAVR) , a leading publisher and distributor of a broad range of home entertainment and multimedia software products, today reported fiscal 2004 fourth quarter and year-end results for the period ended March 31, 2004.
-- Net sales for the fiscal fourth quarter ended March 31, 2004, increased
70% to $142.6 million as compared to $83.6 million for the same quarter
ended March 31, 2003.
-- Net income for the fiscal fourth quarter increased 641% to $3.3 million
or $0.12 fully diluted earnings per share as compared to $442,000 or
$0.02 fully diluted earnings per share for the same period last year.
-- Net sales for the fiscal year ended March 31, 2004, increased 32% to
$475.2 million as compared to $359.4 million for the fiscal year ended
March 31, 2003.
-- Net income increased 106% to $8.9 million or $0.37 fully diluted
earnings per share compared to $4.3 million or $0.20 fully diluted
earnings per share over the same period last year.
Eric Paulson, Chairman and CEO of Navarre Corporation, commented, "Fiscal Year 2004 was another record year for our company, both operationally and financially. Our 4th quarter results were also a company record. The restructuring of our company has allowed us to increase our focus on growing the high margin publishing segment of our business while we continue to focus on aggressive organic growth in our core distribution business. In the last twelve months, the Company grew over $110 million."
Paulson continued, "Our distribution segment provides a highly efficient foundation for our current publishing business. This foundation assists in making our acquisitions even more profitable as we drive sales and consolidate back room operations. The company will also continue to seek out acquisitions and co-publishing transactions, such as Riverdeep, in the publishing sector."
Paulson concluded, "Included in our results, is our management decision to shut down the development of Encore's video game console projects which primarily consisted of the Daredevil video game project. As a result, the Company wrote off $4.3 million of development costs during the quarter and a total of $5.6 million for the fiscal year. These charges are reflected as a reduction in our gross margin. We have refocused Encore on its core competencies of software publishing."
