The stock is down 7.3% at midday following the book chain’s warning last night that there’s bad news ahead regarding its NOOK e-readers and tablets. It now forecasts that NOOK revenues for the fiscal year that ends in April will come in below $3B, with a cash-flow (EBITDA) loss that will be “greater than it was in fiscal 2012.” That contradicts Barnes & Noble‘s assurance last month that the NOOK unit would generate revenues of about $3B, with a cash flow loss “at a comparable level to fiscal year 2012.” And it makes 2013 the third straight year that Barnes & Noble will miss its guidance, Maxim Group analyst John Tinker notes. The NOOK business “is proving to be expensive — and with slowing revenues makes spinning it off to tech investors harder,” he says. “At some point the company has to quantify the amount it is prepared to lose.” The company says it will report earnings for the three months ending in January on February 28, later than it tentatively planned. B&N owns about 78.2% of the NOOK Media subsidiary, while Microsoft controls 16.8% and Pearson has 5%.
Barnes & Noble Shares Battered After It Reports Weak NOOK Sales
Trending Now on Deadline
Ferguson Grand Jury Decision: CNN & Fox News Reporters Attacked On-Air; Networks Go Live To Obama Remarks Over No Indictment - Update
Nicole Kidman & Reese Witherspoon To Star In 'Big Little Lies' Limited Series, Penned By David E. Kelley
More From Lieberman
- Will Redbox's 25% Price Hike For DVD Rentals Hurt Its Bargain Image?
- Exhibitors Agree To “Landmark” ADA Compromise On Closed Captioning
- Court Blocks FCC On Content Deals, Cutting Outsiders' Access To Program Terms
- Turner Networks, Including CNN, Return To Dish Network
- Norman Lear Nixes 'All In The Family' Reboot For Sony--For Now
- Aereo Files For Bankruptcy Protection