A decline in FUNimation sales accounted for most of the 22% decline in sales of Navarre's publishing division, which includes FUNimation, Encore, and BCI, in its second quarter (ending September 30th). Navarre announced its fiscal second quarter results after the close on Wednesday. The down results for FUNimation were said to meet expectations, however; FUNimation's schedule heavily weighted toward toward its fiscal 1st and 4th quarters in the current fiscal year.
Navarre's sales were down 9.6% and net swung to a loss of $400k vs. a profit of $1.6 million in the same period a year ago. EBITDA stayed positive, at $4.4 million (vs. $7.3 million in Q2 last year).
Three primary causes for the shortfall were cited by CEO Cary Deacon. BCI had a sales decline and an HQ move in the quarter. Distribution results were also down, and a new ERP system implementation was absorbing a lot of company resources during the period.