Barnes Internet transformation: in a bind

hunting cloud network on August 21

want to know that Barnes &noble planning for the future? On this question, you’d better ignore everything off in recent months the company says.

ha, Barnes next will continue to work with color tablets. No matter.

Barnes today released a (which mentioned the Nook this quarter’s revenue fell 20%). Results after the communication meeting, in the face of those who want to know the company whether there is any plans for the future investors, Barnes &noble executive almost speechless.

fairer to Barnes withdrawal from the original plan, part of the reason lies in June this year. Now, to make forward planning for the company’s overall future character no longer exists. Former CFO Michael Huseby now the CEO of the Nook, at the same time, he is still as the retail sector (including Barnes &noble outlets and of the CEO.

results revealed a little bit of specific communication meeting planning: Barnes plans to redesign next year. Klipper said: “the new search precision is higher, provide faster shipping service and cost savings.”

“if we want to have a foothold the content industry, can that we’ll be the first to provide equipment.” Barnes will still make tablet

executives statement let us clear slightly, Barnes management at present, is upending lynch before part of planning. “We will focus on the next to provide users with integrated higher Barnes &noble Nook and user experience.” Communication in Huseby results will make this the start of the assurance statement.


our collective Barnes is discussed in fiscal performance in June, when the company announced that stuck to hardware services. Continue to make black and white e-readers, color tablets, explore through cooperation mode. Unfortunately, many people comment mistakenly understanding and summing up its plans to exit the equipment manufacturing for us. Today, I would be happy to respond to some clarification: we want the user to understand Barnes company intends to continue to design and develop creative Nook black-and-white and color hardware equipment. At least a new Nook device will go on sale in front of the shopping season is coming, more and more in the industry is also developing. At the same time, we will continue to provide quality Nook product line, including the Simple Touch Touch the Nook readers, backlight Touch screen version of the Simple Touch with GlowLight Nook e-reader, the Nook HD tablet and the Nook HD + tablet.

Huseby next is facing a series of shelling from financial analysts. These analysts after reading the value of Barnes retailer want to find out: after the Nook surrender so bad grades, why the company still as its key next steps.

“I’m a bit confused,” Coyote Capital analyst Rick Schottenfeld question: “in my estimation, Barnes almost lost $1.5 billion on the Nook business, and this is lower than the sales of the store. It is obvious that the Nook business down the performance of the whole bookstore, shareholders should be aware of this problem, I think……. To some extent, you can boost the confidence of the shareholders?”

Huseby for the mixed with a $1.5 billion loss doesn’t respond directly. Just said: “we had no plans to make the retail business in the near future for the Nook Media business funding gap of capital” and he also said:


I’d like to inform you that in June we released a strong signal to the market, we will change in terms of color equipment manufacturing to a more cooperation mode. We now on color equipment and a large number of technology companies, the display or, chip from partners (rather than Barnes yourself production. I am here again to mention this point, not only to highlight the continuity of the statement with us in June, but that this is a hardware and giant opportunity to establish closer cooperation model, it can reduce business risk. This is where he (former CEO William lynch) as well as the position of the company in June… The problem is not the hardware… But the company is based on the overly optimistic market demand forecast of (error) decisions.

Huseby, said the Nook department’s poor performance was caused by a backlog of inventory: “we overestimated the market demand for our products. As a result, we have to discount sales, sales situation is getting better now. Of course we don’t want this situation appear again. We will eventually turn to the product strategy of cheap much pin.”

Huseby have carried on the detailed description: “a lot of outsourcing in the form of color equipment for company is not appropriate, nor wise.” Nook engineer “not going to lose their job and outsource the business to others.” In addition:

if we intend to move into the content business, I’ll be the first to have equipment production business. Whether in the form of a kind of production of the equipment, we have the confidence to believe that they will be better than the other similar products on the market.

sell the Nook? Possible, but not now, and so on.

during may, TechCrunch — said in a report. This is news is false, or is Microsoft changed our minds.

“stripped of these business quantity huge” Huseby said: “our match words with deeds, if there are on the market opportunities, we will prepare stripping these business.” But the timing is the key. Timing is correct or not is very important to the impact of the business.” In between the lines, you can see that seems to be the Nook performance in deterred by Microsoft.

“nobody denies that the business is separable” Huseby continued: “at the end of the day, stripping business nature is meaningful, but now is not the right time…… If someone can provide enough to change our idea of offer, we will consider such opportunity.” He repeatedly stressed: “we as a company, obviously not reject any possible. Advice from external or internal have constructive Suggestions to our current policy, we will listen to.”

analyst David Derman response: “listen to you talk about corporate strategy, I feel you more like in passive response than forward actively. Of course, this may not be your intention. I believe that you will be the shareholders considered forward-looking considerations.”