Navarre ( NAVR) slipped 10% late Wednesday as investors worried about the home entertainment company's inventory situation. For its third quarter ended Dec. 31, the Minneapolis-based company earned $10.4 million, or 36 cents a share, on sales of $184 million. That's up from the year-ago profit of $3.6 million, or 15 cents a share, on revenue of $156 million. Wall Street analysts had been expecting earnings of 30 cents a share on revenue of $180 million. But the stock dropped $1.55 to $13.91 after Navarre offered cautionary comments on its inventory position. "The company continues to manage its overall capital position to aid growth," finance chief Jim Gilbertson said. "Significant growth in the antivirus software category has caused us to hold higher levels of inventory to meet future sales demands from our retail customers. The payment terms with these vendors is slightly less favorable compared to other vendors. In the publishing segment, the company invested $5 million in advances on previously announced licenses in the quarter. As well, we have invested in more inventory to support our publishing growth."