Barnes & Noble will no longer produce new tablet devices as it transitions to a “partnership model” on color tablets, the company announced today in its fourth-quarter and full-year earnings report. The company also announced greater than expected losses for the quarter of $122 million or $2.11 per share on $1.3 billion in revenue.
Investors expected sales to fall to $1.33 billion and a loss of $0.99 cents per share for the quarter. For the full year, the company’s results weren’t much better, following a disastrous holiday quarter in which it became apparent that Nook tablet sales were struggling. Revenues decreased 4.1% to $6.8 billion versus 2012. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) was $10.3 million versus $176.7 million a year ago. Overall, the company’s net losses were $154.8 million, or $2.97 per share, as compared to $65.6 million, or $1.35 per share in 2012.
Barnes & Noble shares are down about 15% in early trading.
“Going forward, the company intends to continue to design e-reading devices and reading platforms, while creating a partnership model for manufacturing in the competitive color tablet market,” the company wrote in today’s earnings release. “Thus, the widely popular lines of Simple Touch™ and Glowlight™ products will continue to be developed in house, and the company’s tablet line will be co-branded with yet to be announced third party manufacturers of consumer electronics products.”
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Photo by Jeremy Greenfield