NEW YORK (Reuters) -- Barnes & Noble Inc reported a larger quarterly loss as it invested in its “Nook” electronic reader and e-books, and forecast a loss for its first quarter.

Chief Financial Officer Joseph Lombardi told Reuters on Monday that spending on its e-book business explains a large part of the loss in the fourth quarter.
Barnes & Noble Chief Executive William Lynch, who oversaw the development of the Nook and was named CEO in March, said in a statement that the retailer's share of the e-book market now surpasses its share of the retail book market.
A report by Goldman Sachs in April estimated that the company currently commands a 15.8 percent share of physical book sales.
“We are planning to redirect a significant portion of our financial resources toward investments in technology, sales and marketing. These investments will impact our bottom line in 2011, but we believe they will enable Barnes & Noble to capitalize on the significant mid-to-long-term growth opportunities presented by the digital markets,” Lynch said.
Barnes & Noble said it expects a first-quarter net loss of between 85 cents and $1.15 per share, excluding one-time items.
The company reported a net loss of $32.1 million, or 58 cents per share for it fiscal 2010 fourth quarter ended May 1, compared with a loss of $2.1 million, or 5 cents per share, a year earlier.