FUNimation increased its sales of anime over the previous year in the quarter ended September 30th according to parent Navarre, which reported preliminary results for the second quarter of its 2009 fiscal year after the close on Thursday.   Navarre’s publishing segment, which includes FUNimation, Encore, and BCI, reported sales of $28.8 million for the quarter, up from $27.0 million in the same period last year.   Encore’s sales were reported as flat and BCI’s were not mentioned, so it’s safe to assume that FUNimation accounted for the bulk of that increase. 

The increased sales of anime were also credited for the increase in the segment’s profits, from $1.2 million in the year ago period to $3.1 million this year. 

Increases in anime sales were attributed to new content acquisitions (it acquired some rights formerly held by ADV and Geneon, see “ADV, Geneon Worth $7-$10 Million”) and to new digital distribution deals. 

Navarre warned that because its book value is greater than its market capitalization, it’s performing an impairment test on the good will on its balance sheet.  Some of that good will was attributable to the acquisition of FUNimation (difference between balance sheet value and price paid), and that may end up getting written down by the time the company reports its final results for the quarter. 

Navarre appears to be managing its balance sheet carefully in this time of tightening credit. It has brought down its debt net of cash by $7.3 million vs. a year ago.  The company has also announced that the writedown of good will that it’s anticipating will not impact its compliance with the covenants in its lending agreements.