Barnes & Nobles just released its fiscal Q3 2011 report, saying net income fell as both physical and digital books rose, and the company continues to invest it its Nook e-book readers.
The largest traditional U.S. bookstore is also introducing a Nook Tablet device with 8 gigabytes of memory for USD 199. Its current 16GB device sells for USD 249.
Revenue from its Nook e-readers and digital catalog rose 38 percent to $542 million.
Net income for the 13 weeks ended January 28th fell to USD 52 million, or USD 0.71 per share. That compares to a loss of USD 60.6 million or USD 1 per share last year. Analysts expected USD 0.94 per share. Revenue rose 5% to USD 2.44 billion. Analysts expected revenue of USD 2.53 billion. Revenue in stores open at least one year rose 2.8 %. Barnes & Noble maintained its forecast of full year company sales of USD 7 billion to USD 7.2 billion. The Nook business is expected to generate USD 1.5 billion in the fiscal year ending in April.
The Barnes & Nobles share is currently trading up 3% in New York.
Last Friday, our top-pick G5 Entertainment announced that it will enter the Nook platform with initially 3 of its games. In the light of the rapid growth of the Nook device sales, this seems to be a wise move.