The Minnesota-based Navarre Corporation reported an increase of 9.5% in net sales for the most recent quarter (by their reckoning the second quarter of fiscal 2007, which ended on September 30th, 2006).  Navarre's stock rose 6% in the wake of the report and in spite of the fact that Navarre lowered its 2007 net income outlook by a million dollars from $10 to $13 million to $9 to $12 million to reflect the impact of Tower Records' bankruptcy (see 'Tower Records Liquidated').

Eric Paulson, Navarre's Chairman and CEO, cited 'improvements in the performance of FUNimation' as one of the key elements in the company's successful quarterly performance.  Revenues for Navarre's publishing segment grew by 9.1% compared with the same quarter a year ago and the report cites two anime features released by FUNimation, Dragon Ball Z Movie 13: Wrath of the Dragon and the Full Metal Alchemist Movie: Conqueror of Shambala. 

FUNimation's strong performance was even more impressive given the fact that sales for the other elements of Navarre's publishing segments, software and non-anime DVDs were down on a year-over-year basis.