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Majesco's Troubles Continue As Finances Worsen

| 10 Sep 2013 01:00
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Majesco's net revenues for the quarter are down 56 percent compared to last year, but the CEO says that everything is going exactly as planned.

Okay, maybe "exactly as planned" is a bit optimistic, but Majesco CEO Jesse Sutton is certainly doing his best to spin bad news into something positive. The company reported net revenues of $4 million for the quarter ended July 31, down 56 percent from the $9.1 million it earned in the same quarter last year. That amounted to an operating loss of $3.6 million, which at least was no worse than the $3.6 million operating loss in the third quarter of the previous year; the net loss was also $3.6 million, compared to $3.1 million in FY2012.

For the first three quarters of the 2013 fiscal year, net revenues hit $37.2 million, down 65 percent from the $105.7 million earned over the same period in FY2012. The net loss for the period was $8.1 million, compared to a net income of $7.3 million for the first nine months of the previous year.

Despite the gloomy news, Sutton did his best to sound upbeat. "Consistent with the first half of 2013, our third quarter results reflect the ongoing industry transition to next generation console gaming," he said in a statement. "We believe that our holiday release slate, which is focused on high-profile branded games based on popular characters or franchises, is the right approach for the current environment. We are excited about our releases based on Phineas and Ferb, Agent P Doofendash, Barbie and others as well as the evolution of our Zumba franchise that includes the upcoming Zumba Kids and Zumba Fitness World Party releases and the well-received Zumba Dance, the first ever motion-based fitness experience for mobile tablets, which launched in July."

Majesco announced in August that it was moving into the online casino business with a 50 percent stake in GMS Entertainment, which Sutton said at the time "allows us to participate in a rapidly growing market segment and position the company for longer term growth as more jurisdictions move to legalize real money online gaming." The company was also recently given another 180 days to get its stock price above $1 to avoid being delisted from the Nasdaq.

Source: Majesco

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