Navarre Corporation Announces Settlement of Lawsuit
18 November 2005 - 12:00AM
PR Newswire (US)
MINNEAPOLIS, Nov. 17 /PRNewswire-FirstCall/ -- Navarre Corporation
(NASDAQ:NAVRE), a publisher and distributor of a broad range of
home entertainment and multimedia software products, today
announced it has reached a settlement of the outstanding litigation
with ValueVision Media, Inc. This litigation had been disclosed as
a material contingency in Navarre's periodic reports since the
filing of the Company's quarterly report on Form 10-Q for the
period ending September 30, 2004. Under the terms of the
settlement, Navarre has agreed to pay ValueVision the aggregate
amount of $300,000 over the next two fiscal quarters and the
parties have agreed to dismiss all claims in the litigation with
prejudice. The companies have also entered into an arrangement
whereby Navarre has agreed to purchase air time on the ShopNBC(R)
network, which will be used by Navarre to promote the sale of its
products and those of its vendors. As a result of this settlement,
Navarre anticipates that it will recognize an expense in the amount
of $300,000 during the fiscal quarter ended September 30, 2005.
About Navarre Corporation Navarre Corporation (NASDAQ:NAVRE) is a
publisher and distributor of a broad range of home entertainment
and multimedia products, including PC software, CD audio, DVD and
VHS video, video games and accessories. Since its founding in 1983,
the company has established distribution relationships with
customers across a wide spectrum of retail channels which includes
mass merchants, discount, wholesale club, office and music
superstores, military and e-tailers nationwide. The company
currently provides its products to over 18,000 retail and
distribution center locations throughout the United States and
Canada. Navarre has recently expanded its business to include the
licensing and publishing of home entertainment and multimedia
content, primarily through the acquisitions of Encore Software,
Inc., BCI Eclipse Company, LLC, FUNimation Productions, Ltd. and
The FUNimation Store, Ltd. For more information, please visit the
company's web site at http://www.navarre.com/ . Safe Harbor The
statements in this press release that are not strictly historical
are "forward looking" statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 and are intended to be covered by the safe
harbors created by these sections. The forward-looking statements
are subject to risks and uncertainties and the actual results that
the Company achieves may differ materially from these
forward-looking statements due to such risks and uncertainties,
including, but not limited to: potential restatements related to
the Company's review of application of FIN 46(R) to third party
entities or relationships the Company's revenues being derived from
a small group of customers; the Company's dependence on significant
vendors; the Company's dependence upon software developers and
manufacturers and popularity of their products; the Company's
ability to maintain and grow its exclusive distribution business
through agreements with music labels; the Company's dependence upon
a key employee and its Founder, namely, Eric H. Paulson, Chairman
of the Board, President and Chief Executive Officer; the Company's
ability to attract and retain qualified management personnel;
uncertain growth in the publishing segment; the acquisition
strategy of the Company, including the successful integration of
FUNimation, could disrupt other business segments and/or
management; the seasonality and variability in the Company's
business and that decreased sales during peak season could
adversely affect its results of operations; the Company's ability
to meet its significant working capital requirements related to
distributing products; the Company's ability to avoid excessive
inventory return and obsolescence losses; the potential for
inventory values to decline; the Company's credit exposure due to
reseller arrangements or negative trends which could cause credit
loss; the Company's ability to adequately and timely adjust cost
structure for decreased demand; the Company's ability to compete
effectively in distribution and publishing, which are highly
competitive industries; the Company's dependence on third- party
shipping of its product; the Company's dependence on information
systems; technological developments, particularly in the electronic
downloading arena which could adversely impact sales, margins and
results of operations; increased counterfeiting or piracy which
could negatively affect demand for the Company's products; the
Company may not be able to protect its intellectual property;
interruption of the Company's business or catastrophic loss at a
facility which could curtail or shutdown its business; the
potential for future terrorist activities to disrupt operations or
harm assets; significant Company stock volatility; the exercise of
outstanding warrants and options adversely affecting stock price;
the Company's anti-takeover provisions, its ability to issue
preferred stock and its staggered board may discourage take-over
attempts beneficial to shareholders; because the Company does not
intend to pay dividends, stock appreciation may yield the only
return on an investment in Company stock; and the Company's
directors may not be personally liable for certain actions which
may discourage shareholder suits against them. Other than the
initial risk stated above, a detailed statement of risks and
uncertainties is contained in the Company's reports to the
Securities and Exchange Commission, including in particular the
Company's Form 10-K and Form 10-K/A for the year ended March 31,
2005. Investors and shareholders are urged to read this document
carefully. The Company can offer no assurances that any
projections, assumptions or forecasts made or discussed in this
release NAVARRE CORPORATION ANNOUNCES SETTLEMENT OF LAWSUIT, dated
November 17, 2005, will be met, and investors should understand the
risks of investing solely due to such projections. The Company
undertakes no obligation to revise any forward-looking statements
in order to reflect events or circumstances that may arise after
the date of this press release. Investors and shareholders may
obtain free copies of the public filings through the website
maintained by the SEC at http://www.sec.gov/ or at one of the SEC's
other public reference rooms in Washington D.C., New York, New York
or Chicago, Illinois. Please call the SEC at 1-800-SEC-0330 for
further information with respect to the SEC's public reference
rooms. DATASOURCE: Navarre Corporation CONTACT: Haug Scharnowski,
Vice President Corporate Relations, of Navarre Corporation,
+1-763-535-8333, Web site: http://www.navarre.com/
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