The Navarre Corporation reported lower sales but higher profits for the third quarter of its fiscal year 2007, which ended on December 31st, with FUNimation's sales a bright spot in its Publishing Division. 

The company reported net sales of $210.2 million.  Compared with the same quarter a year earlier Navarre's sales were down some 2.1%, but gross profit was up 24.9%, 16.8% of net sales versus 13.1% of net sales 12 months earlier.  Operating income for the quarter was $8.7 million versus a loss of $9.3 million for the third quarter of fiscal 2006, which was largely the result of a $16.8 million charge related to the bankruptcy of the Musicland Group (see 'Musicland Puts Navarre in the Red').

Revenues for Navarre's Publishing Division mirrored the company's overall performance with a decline of 2.5%. While Encore and BCI experienced softer than expected sales, FUNimation was singled out in Navarre's quarterly report as the strongest performer in the Publishing Division.  'Net sales benefited from several new FUNimation anime DVD releases including Black Cat, Basilisk, Fullmetal Panic, Trinity Blood and two Dragon Ball Z movie 3-packs,' the report said, noting that 'television exposure and subsequent strong ratings further helped the DVD sales of several anime titles.'