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Technology Stocks : Audio and Radio on the Internet- NAVR -- Ignore unavailable to you. Want to Upgrade?

To: SAC who wrote (16058)	5/4/1999 9:09:00 AM
From: wbASSETt	Respond to of 27722

NEWS NEEDS REPEATING !! wbASSETt MINNEAPOLIS--(BUSINESS WIRE)--April 23, 1999--Navarre Corporation (Nasdaq NMS: NAVR.O), today announced preliminary sales and earnings for the fiscal year and 4th quarter ended March 31, 1999. Navarre's estimated gross sales for the year ended March 31, 1999 were $311,090,000, a 26.0% increase over the previous year. Estimated net sales were $210,415,000, an increase of 7.0% over last year. The Company anticipates reporting a net loss, for the year ended March 31, 1999, of $28,500,000. Navarre also noted it has improved its cash position, and paid its revolving bank loan down to $300,000 at fiscal year-end 1999 as compared to $24,000,000 for the same period last year. Estimated 4th quarter gross sales increased to $69,042,000, or 21.9% over the previous year, while net sales decreased by 28.6% to $27,733,000. The anticipated decrease in net sales is due to the improved returns processing system, which, for the quarter, are estimated to be $37,007,000 compared to $11,235,000 for the same period last year. The Company anticipates a loss for the quarter of $22,940,000. Losses in the 4th quarter are attributed to a number of factors that include its Internet subsidiary NetRadio Network, a one-time, non-cash adjustment to inventory, and the write-off of several financially stressed vendors. During the 4th quarter, the Company also increased its bad debt and returns reserves to accommodate for the higher gross sales. NetRadio's significant losses had been anticipated and planned for due to its developmental stage. "We had three primary goals for our fourth quarter, becoming current on our returns, reducing our debt and increasing revenues. Sales are strong in software, music and DVD. Our objective of being current on returns by March 31st has been accomplished, our debt has been reduced to $300,000 and now we anticipate significant growth and a return to profitability in our new fiscal year," stated Eric Paulson, President and CEO of Navarre Corporation and Chairman of the Board of Directors for NetRadio Corporation. Navarre Corporation www.navarre.com provides fulfillment for both traditional and E-Commerce retailers. Navarre Corporation's major business groups are: Computer Products Division which publishes and distributes quality consumer software to retailers nationwide; Independent Music Distribution which is the major distributor of independent music labels in the United States and now Canada; ARM which distributes major label music to non-traditional retail outlets; DVD distribution; and the majority-owned subsidiary NetRadio Network which is the premier Internet radio network featuring 120 channels of originally programmed audio content at: www.netradio.net(TM), and its online stores CDPoint (www.CDPoint.com(TM)).