Navarre Corporation Receives Nasdaq Delisting Notification
November 16 2005 - 7:50PM
PR Newswire (US)
MINNEAPOLIS, Nov. 16 /PRNewswire-FirstCall/ -- Navarre Corporation
(NASDAQ:NAVR), a publisher and distributor of a broad range of home
entertainment and multimedia software products (the "Company"),
received a Staff Determination Letter from The Nasdaq Stock Market
("Nasdaq") indicating that the Company failed to comply with the
filing requirement for continued listing set forth in Nasdaq
Marketplace Rule 4310(c)(14), and that its common stock is
therefore subject to delisting from The Nasdaq National Market. The
Company filed its Quarterly Report on Form 10-Q for the period
ended September 30, 2005 with the Securities and Exchange
Commission on November 14, 2005; however, the filing did not fully
satisfy the Nasdaq listing requirement given the lack of an
auditors' review of the Company's financial statements for the
quarterly period in accordance with Statement on Auditing Standards
No. 100, and the lack of the requisite certifications under
Sections 302 and 906 under the Sarbanes-Oxley Act of 2002. Based on
the filing deficiency, as of the open of business on November 17,
2005, a fifth character "E" will be appended to the Company's
trading symbol. Accordingly, the trading symbol for the Company
will be changed temporarily from "NAVR" to "NAVRE" until such time
as the Company demonstrates its compliance with all applicable
Nasdaq Marketplace Rules. As previously announced, the Company will
restate previously reported financial results for the fiscal year
2003, 2004 and 2005 annual periods. The preparation of these
reports caused a delay in the Company's ability to file its
Quarterly Report on Form 10-Q for its third quarter ended September
30, 2005 with the auditors' review and with the officer
certifications. The Company plans to file its Form 10-Q for the
quarter ended September 30, 2005 when the Company's independent
registered public accounting firm completes its work and Navarre
has filed the reports for the restated period. About Navarre
Corporation Navarre Corporation (NASDAQ:NAVR) 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 RECEIVES NASDAQ DELISTING NOTIFICATION,
dated November 16, 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, or Web site: http://www.navarre.com/
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