News Former Funimation Parent Navarre Posts 4th Quarter Results
posted on 2011-06-07 19:30 EDT by Crystalyn Hodgkins
Navarre Corporation, the Minneapolis-based former parent company of the North American anime distributor Funimation, released its financial results for the fourth quarter of fiscal year 2011 on Tuesday. This is the last time Navarre's financial results will mention Funimation, as Navarre sold Funimation on March 31 for US$24 million to a group of investors that includes Gen Fukunaga, who is also Funimation's chief executive officer. The financial results cover the three months that ended on March 31.
As Navarre had announced in previous quarters this year, Funimation is listed as "discontinued operations" — a financial term for a segment of a company that has been separated from the rest of the company, or has been approved for separation.
Navarre reported in its press release that Funimation had a net loss before tax of US$849,000, which included US$2.1 million in non-cash impairment charges.
Navarre reported that discontinued operations showed a net loss of US$536,000, compared to a net loss of $486,000 for the same segment in the same period in 2010. In the first quarter of 2011, the segment had an income of US$895,000, in the second quarter, it had a net income of US$1.68 million, and in the third quarter, it had a net income of US$1.8 million.
Reid Porter, Interim Chief Executive Officer, commented in the report on its sale of Funimation, saying "We are pleased to have completed the sale of FUNimation during the fourth quarter. As we have previously stated, this Japanese anime business was not a strategic fit with the rest of our businesses. This sale allows us to focus on expanding our presence in new, growing revenue streams."
Navarre had also announced on Monday that Chairman of the Board Eric Paulson is stepping down in September, nearly 30 years after he founded company.
Navarre will hold its quarterly earnings conference call to discuss the report on Wednesday.