Barnes and Noble 2014 Annual Report Download - page 5

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The NOOK management team executed well on its operating and financial plans,
including selling through its device inventory, reducing expenses and exploring
opportunities to grow content sales, which led to a  million reduction in
EBITDA loss. As a result of our rationalization efforts in , we expect a further
decrease in EBITDA loss in the NOOK segment in . This fiscal year NOOK
moved from being a device-centric business to one more focused on growing
content sales.
We are excited about our new partnership with Samsung to create customized
tablets that combine Samsung’s leading tablet technology with NOOK’s award-
winning reading experience. This partnership will enable the Company to reduce
its exposure on the hardware production side while allowing NOOK to do what it
does best – delivering the best reading experience in the marketplace.
In June , Barnes & Noble’s Board of Directors authorized management to
separate Barnes & Noble’s Retail and NOOK Media™ businesses into two sepa-
rate public companies. We believe these businesses will have the best opportu-
nity to optimize shareholder value if they are capitalized and operated separately.
Our goal is to complete the proposed separation by the end of the first quarter
of next calendar year. We expect our Retail and NOOK Media businesses will
continue to have successful long-term business relationships with each other
after separation.
We are pleased with the progress we made during the year in each of our busi-
nesses thanks to the hard work and commitment of our Retail and College book-
sellers and NOOK employees around the country. I feel confident that we are well
positioned to undertake the proposed separation of Retail and NOOK Media but
recognize there is much work to be done.
As we continue to adapt the structure of our company to the changing market-
place environment and evolving needs of our customers, there is one thing that
will not change – our commitment that the Barnes & Noble brand will always
stand for the highest quality content delivered wherever, whenever and however
our customers choose to connect with us.
Sincerely,
Leonard Riggio
2014 Annual Report 3