Why buy BCST when you can get NAVR.
NAVR with 3.3 mil shares float, 1.8 mil shares shorted.
Breakeven business, return to profit.
And you get www.netradio.net, almost same as www.broadcast.com for
free.
And NAVR offer: www.cdpoint.com www.softwarepoint.com.
I think Barrons will mention NAVR and BCST this weekend.
Navarre Corporation Returns to Profitability
Sales and gross margins for computer software and music show dramatic
increase and Navarre's Net Radio subsidiary increases revenue through
CDPoint(TM) and SoftwarePoint(TM) sales
MINNEAPOLIS, July 15 /PRNewswire/ -- Navarre Corporation (Nasdaq: NAVR - news), a
leading national distributor of music, computer software and interactive CD- ROM products, today
reported a profit of $27,000 for 1999's first fiscal quarter ended June 30 compared to a loss of
$1,060,000 for the same period last year. Net sales for the first quarter fiscal 1999 were
$53,217,000, a 33.7% increase over the $39,798,000 for the same period last year. Eric Paulson,
Navarre's chairman and chief executive officer stated, ''We are encouraged by the progress of the
Company as we have moved through the difficult transition of the consolidation of our customer base.
I am extremely pleased with the performance of both our computer products division and our music
division and their ability to generate new sales through improved content and our expanded customer
base. This growth is attributable in part to the Company's increased financial capacity resulting from
its May 1998 $20 million private offering of preferred stock.''
Gross margins for the quarter were $7,069,000 or 13.3% of net sales compared to $4,275,000 or
10.7% of net sales for the same period last year. Operating expenses as a percent of net sales was
12.0% for the quarter compared to 14.2% for the same period last year. Income from operations for
the quarter ended June 30, 1998 increased by over $2,000,000 from a loss of $1,330,000 in the
prior year's first quarter to $697,000 for the quarter ended this year. EBITDA for the quarter ended
June 30 increased by 249.1% over the same period last year.
Paulson also stated, ''The computer products division sales increased by 36.0% for the quarter
ended June 30 as compared to the same period last year. Software has added a number of new
customers including barnesandnoble.com and has signed additional publishers for both exclusive and
non-exclusive distribution.''
Music sales improved by 29.2% for the quarter. This included the initial shipments of the Company's
new hit, ''G Funk Classics Vol. 1 & 2'' by Nate Dogg. Paulson commented, ''This record is the first
from our newly distributed label, Celestial Breakaway. It has already exceeded our sales
expectations and we anticipate continued momentum in the coming months.''
Paulson also stated, ''Net Radio, the Company's Internet subsidiary has become the world's largest
on-demand webcaster of originally programmed audio content. With the advent of our LCP
(listen/click/purchase) technology, we have now begun to convert our 20 million page viewers and 3
million audio visits per month to impulse purchasers through our new electronic commerce store
CDPoint(TM) (http://www.cdpoint.net).
Subsequent to the quarter end, we have also launched SoftwarePoint(TM)
(http://www.softwarepoint.com) which we believe will become a significant software e-commerce
store on the Internet.
Navarre Corporation's four major business segments are: The computer products division which
publishes and distributes quality consumer software to retailers nationwide. This division has the
leading marketshare in several key categories of consumer software. The independent music
distribution is the major distributor of independent music labels in the United States; A.R.M.
distributes major label music to non-traditional retail outlets nationally; the wholly-owned subsidiary
NetRadio Network (http://www.netradio.net) is the premier Internet radio network featuring 160
channels or originally programmed audio content. NetRadio network sells audio CD's and computer
software direct to consumers through its CDPoint(TM) (http://www.cdpoint.com) and
SoftwarePoint(TM) (http://www/softwarepoint.com).
For further information, please visit Navarre's Web site at (http://www/navarre.com).
Navarre Corporation
(Amounts in thousands, except per share data)
Three months ended
June 30,
1998 1997
(unaudited)
Sales $ 53,217 $ 39,798
Gross profit 7,069 4,275
Operating expenses 6,402 5,641
Operating income (loss) 697 (1,330)
Net income (loss) $ 27 $(1,060)
Earnings (loss) per common share: $ -- $(.15)
Basic and diluted
Weighted average common and
common equivalent shares outstanding
Basic 7,010 6,902
Diluted 7,470 6,902
This news release, as it relates to expectations regarding future sales and profitability, contains
forward-looking statements regarding future performance of the Company and its products. The
Company's actual results could differ materially from the estimates made in the forward-looking
statements as a result of a number of factors, including the risks and uncertainties inherent in the
Company's business, the retail market for prerecorded music and consumer software products,
customer buying patterns, new and different competition in the Company's traditional and new
markets and the rate of new product development and commercialization by the Company.
SOURCE: Navarre Corporation |
