Estimates: 0.11 | 0.10 | 0.09 (0.10)
Actual: 0.11

The stock closed today up 0.09 (+5.08&#37 at 1.86.

Financial breakdowns:

Financial Results -- Third Quarter Fiscal Year 2008

-- Net sales from continuing operations were $217.5 million, as compared
to $195.4 million for the third quarter of fiscal year 2007, an
increase of $22.1 million or 11.3%.

-- Net income from continuing operations was $4.0 million, or $0.11 per
diluted share, as compared to net income from continuing operations in
the third quarter of fiscal year 2007 of $3.8 million, or $0.10 per
diluted share.

-- Net income was $3.9 million, or $0.11 per diluted share, as compared to
net income in the third quarter of fiscal year 2007 of $4.1 million, or
$0.11 per diluted share.

-- Earnings before interest, taxes, depreciation, amortization (EBITDA)
from continuing operations was $11.4 million as compared to $11.2
million for the third quarter of fiscal year 2007. See "Use of
Non-GAAP Financial Information" below.


Financial Results -- Year to Date Fiscal Year 2008

-- Net sales from continuing operations in the first nine months were
$498.3 million, as compared to $486.5 million for the first nine months
of fiscal year 2007, an increase of $11.8 million or 2.4%.

-- Net income from continuing operations during the first nine months was
$6.1 million, or $0.17 per diluted share, as compared to net income
from continuing operations in the first nine months of fiscal year 2007
of approximately $5.8 million, or $0.16 per diluted share.

-- Net income during the first nine months was $9.0 million, or $0.25 per
diluted share, as compared to net income in the first nine months of
fiscal year 2007 of $6.3 million, or $0.17 per diluted share.

-- EBITDA from continuing operations for the first nine months of fiscal
year 2008 was $23.2 million as compared to $23.8 million for the first
nine months of fiscal year 2007. See "Use of Non-GAAP Financial
Information" below.
From report:

Cary Deacon, Chief Executive Officer, commented, "Despite a very choppy retail quarter, our distribution group aggressively pursued market share and has continued to expand our close relationships with both vendor and retail partners. This strategy changed our margin mix in the quarter and we believe that this impact is temporary. We employed more distribution inventory in the quarter to support our initiatives and fully expect to finish our fiscal year at or below last year's inventory levels. As well in the quarter, our distribution segment was awarded Symantec's software business at Best Buy."


Deacon continued, "Both Encore and FUNimation had a solid quarter. Each business met operating profit expectations, which were an improvement as compared to the same quarter last year. Encore's signing of the previously announced PlayFirst exclusive license agreement was an important step in our acquisition plan in the PC gaming and entertainment sector. FUNimation continues to grow its market share in the Anime sector. The Publishing segment was impacted by the poor performance of BCI; however, we believe that BCI is positioned to return to profitability in fiscal year 2009."

2008 guidance:

-- The Company anticipates consolidated net sales of between $620 million
and $640 million.
-- Earnings before interest, taxes, depreciation and amortization (EBITDA)
from continuing operations are expected to be between $29 million and
$31 million.
-- Anticipated net income (including discontinued operations) between
$9 million and $10 million.
-- Anticipated depreciation and amortization expense of approximately
$10 million.
-- Anticipated share-based compensation expense of approximately
$1 million.
-- Cash flow from operations is anticipated to again be positive for
fiscal year 2008 results.
Navarre will host a conference call at 11:00 a.m. ET, Thursday, February 7, 2008, to discuss quarterly results. The conference call can be accessed by dialing 1-800-798-2801 with conference participant passcode "79565540", ten minutes prior to the scheduled start time.