Sales of tablets and e-readers returned $100 million to the company during the period, dropping 58.2 percent compared to the prior year. Digital content sales were down 26.5 percent.
However, newly appointed CEO Michael P. Huseby said the company is committed to its e-readers and taking steps to reverse the sales decline.
"The company is actively engaged in discussions with several world-class hardware partners related to device development as well as content packaging and distribution," said Huseby in a statement. "As a result, we plan to launch a new NOOK color device in early fiscal 2015."
Looking ahead, Barnes & Noble indicated that it reduced staff levels in the Nook business just after the quarter ended and that "these ongoing efforts may involve additional actions."