Funi boosts Navarre's Q2 results

[KudosForce]

Originally Posted by Vicserr

It's nice that BCI/Navarre is doing well, I hope that makes them release more Tokusatsu (I've already gone thru Ultraman, Iron King and Super Robot Red Baron and I need more )

Ditto on that front!

Also, I'm glad to see that things are going smoothly for Funimation. I am hoping that they will do the same thing for the Bobobo-Bo Bo-bobo TV series like they did for Geneon's series and rescue it in the near future.

In the mean time, I give my blessing to them.

[WTK]

A bit more on this posted on Robert's Anime Corner Blog.

[dragonrider_cody]

Good to hear Funimation had good results. I still wish Navarre would give more specific numbers by company, rather than corporate division. And it's not suprising that much of the recent results improvements were due to the ADV/Geneon titles, and their increased market share.

My only concern is Navarre itself. Their debt is very large for a smaller company, especially in the current economic climate. Though I didn't realize how low their cash on hand was until I read the RACS post. Their stock price is also a concern. It's below NASDAQ standards, and if it doesn't improve in the coming weeks, Navarre could be in danger of being delisted. That doesn't mean much for the company itself, as it can still do business, but it doesn't help confidence from investors.

Sorry, didn't mean to sound so negative. But it's been very hard to be upbeat lately.

[Quarkboy]

Originally Posted by blinx01

Good news for FUNi and R1 anime as a whole.
My only negative is that they have cut a few corners to most likley get these profits.
For example;
- Cramming 13 eps onto 2 discs where as they should be using 3, meaning a serious drop in video quality
- Cheap, flimsy packaging
- Inconsistancy with releases (Tsubasa box?)

Thanks to those things they improved their margins by more than 4% (according to the conference call).

[stfram]

Originally Posted by Quarkboy

Thanks to those things they improved their margins by more than 4% (according to the conference call).

Short term savings. It's going to be interesting to read their take a year from now.

I'm reacting by just holding off on multi-set shows like Ghost Hunt, and waiting to see if a complete collection become available at some point. Same with multi-season shows like School Rumble.

For full sets like Strain, they've got to be heavily discounted.

[MadL]

Originally Posted by dragonrider_cody

My only concern is Navarre itself. Their debt is very large for a smaller company, especially in the current economic climate. Though I didn't realize how low their cash on hand was until I read the RACS post. Their stock price is also a concern. It's below NASDAQ standards, and if it doesn't improve in the coming weeks, Navarre could be in danger of being delisted. That doesn't mean much for the company itself, as it can still do business, but it doesn't help confidence from investors.

Sorry, didn't mean to sound so negative. But it's been very hard to be upbeat lately.

On that note -- NASDAQ has apparently said that it will temporarily suspend (until Jan. 16) the requirement that a company's stock sell for more than one dollar:

Star Tribune article (also lists potential negative consequences of delisting)

Edit: For the curious: This article from Investopedia has a brief summary on delisting, and what NASDAQ's requirements are for a company to stay listed with them.

[dragonrider_cody]

Originally Posted by MadL

On that note -- NASDAQ has apparently said that it will temporarily suspend (until Jan. 16) the requirement that a company's stock sell for more than one dollar:

Star Tribune article (also lists potential negative consequences of delisting)

Edit: For the curious: This article from Investopedia has a brief summary on delisting, and what NASDAQ's requirements are for a company to stay listed with them.

Good to know. Apparently I had missed that, but it's probably a good idea in the current market. I like Funimation, most of the time, but them being in the hands of Navarre just makes me nervous. There is just something I don't like or trust about the company and their business model. The razor thin profit margins, nearly worthless stock, low cash reserves, and high debt make me even more nervous. Especially given Funi's dominant position in the market now.

But then again, if Funi hadn't been bought out by Navarre when it was, it could be facing the same problems we saw at ADV, Geneon and others.

[something]

Originally Posted by dragonrider_cody

But then again, if Funi hadn't been bought out by Navarre when it was, it could be facing the same problems we saw at ADV, Geneon and others.

And I guess the real question now is, is Funi's success putting it in a position where it could survive a Navarre collapse and keep chugging along on its own? Would be nice to know just how much this relationship, nowadays, is still Navarre enabling Funi, as opposed to Funi helping prop up Navarre. In short, how much of Funi's success is dependent on staying as part of Navarre?

[dragonrider_cody]

Originally Posted by something

And I guess the real question now is, is Funi's success putting it in a position where it could survive a Navarre collapse and keep chugging along on its own? Would be nice to know just how much this relationship, nowadays, is still Navarre enabling Funi, as opposed to Funi helping prop up Navarre. In short, how much of Funi's success is dependent on staying as part of Navarre?

There are very few examples of a successful subsidiary surviving the downfall of the parent company. Generally, even when one division is doing well, if the main company goes down it takes everything down with it. The only exceptions tend to be when the subsidiary is sold off to raise funds, as often the more profitable divisions are sold for a quick buck so a company can focus on it's core businesses.

The big question is whether Navarre could find a buyer for Funimation in the current market, if it began to have problems. Of if Navarre would hold onto a successful division to prop itself up a bit longer, and let something else go, like BCI. But if Navarre would be forced into a position to sell Funi, it may be for significantly less than they paid for it.

But I guess they is no point in debating it at the moment, as Navarre seems to be doing okay for now. Though, like Robert pointed out, it only takes a few misses for the ship to hit rough water.