Navarre is a distributor and as a such it's prone to having to operate in a razor thin margin environment. When economy is good this tends to be a somewhat easy to do, but when the economy turns south it's time to brace for layoffs. Now, as a publisher and distributor of home entertainment/multimedia products (e.g., PC software, DVDs, CDs, etc.) Navarre is competing in an industry that is trying to stave off attacks from content pirates as well as changing media consumption models. Needless to say, next couple of years will be critical for Navarre - I would not be surprised if a chunky round of layoffs hits the company very soon.
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