Newspaper: Funimation Sales Down More Than Half Since 2004
posted on by Gia Manry
The Minneapolis-based Star Tribune newspaper posted a Tuesday column by business reporter Eric Wieffering on Navarre Corporation, the parent company of the North American anime distributor Funimation. (Like the newspaper, Navarre is also based in Minnesota.) Navarre recently added two outside directors to its board at the behest of its largest shareholder, Becker Drapkin Management. Wieffering characterized Becker Drapkin as a company with a history of investing in companies which are having financial difficulties and raising its stock value, occasionally via forceful methods.
Wieffering specifically addressed Navarre's 2005 acquisition of Funimation and its impact on Navarre's stock. He stated that Funimation's 2004 net sales totalled US$72 million, with pre-tax income of US$29.8 million. By contrast, he estimated Funimation's 2010 net sales at US$35 million and pre-tax income at US$10 million. (Funimation's financial year of 2010 ends this March.) Meanwhile, Navarre's stock has dropped 75% in the years since the purchase.
Last year, Navarre announced that it was considering selling Funimation. Last September, the company stated that it had six potential buyers, but announced in January that it had received no adequate offer and is considering halting the sales process.
Thanks to dynasore and Greg Hanson for the news tip.