US book e/retailer Barnes & Noble (NYSE: BKS) has released its FY12 financials for the 12 months ending 28 April 2012.

Of particular interest was its Nook digital reader and content activity, which is now broken out as a separate accounting line.

Total Nook hardware and softwares sales were $933 million, up 34 percent year-on-year.

Sales in Q4 were $164 million, down 10.5 percent y-o-y.

Content is best

Barnes & Noble said this was due to lower hardware sales and lower average device prices. It also received more Nook Simple Touch hardware back from retailers as it optimised its supply chain for future products.

However, digital content sales - including books, magazines and apps - increased 65 percent in Q4, up 119 percent for the full year to $483 million.

Still, EBITDA (a measure of cash flow) for the overall Nook business remained in the red. It posted a financial year loss of $262 million, compared to a loss of $209 million for FY2011.

Looking ahead

As announced in April, Barnes & Noble is currently in the process of launching its Nook and college book business as a completely separate company - known as 'Newco' - as part of its strategic partnership with Microsoft, which will invest $300 million in the new company.

It noted that it 'is in the process of implementing the work necessary to complete the separation and close the Microsoft transaction'.

"In the quarter we ... announced a historic new partnership with Microsoft that will include a significant investment in Newco, and that will capitalise the company to fuel continued growth in digital and international expansion," pointed out CEO William Lynch.

[source: Barnes & Noble]