Barnes and Noble has just announced their 3rd quarter financial results and things like bleak for the Nook line of e-readers and tablets. Customers seem to have tremendous apathy for the booksellers modern portfolio.
The NOOK segment (including digital content, devices and accessories) had revenues of $78 million for the quarter, decreasing 50.6% from a year ago. Device and accessories sales were $37 million for the quarter, a decrease of 62.8% from a year ago, due to lower unit selling volume. Digital content sales were $41 million for the quarter, a decline of 29.3% compared to a year ago, due primarily to the lower device unit sales volume.
Despite the sales decline, NOOK EBITDA losses decreased $32 million, or 52.5%, as compared to a year ago to $29 million. Margins improved on product mix and lower occupancy costs, while expenses declined on continued cost rationalization efforts.
Can Barnes and Noble turn around their e-reader and tablet division? Likely not anytime soon, as the company has no plans to release new tablets this year. The only thing they might do is release a new e-reader, but in order for it to be successful it has to surpass the Kindle Voyage in resolution and overall hardware performance.