Majesco sees reversal in fortunes

Q2 finances see slight spikes in sales but turnaround in profits; early Psychonauts sales and TV Arcade line heralded by company execs.

Majesco Entertainment today reported an almost $3 million increase in sales recorded for the quarter ending April 30, 2005. Citing the release of the Tim Schafer-designed Psychonauts (for the Xbox, released just 10 days before books closed on the quarter) as well as brisk sales of the $19.95 TV Arcade product line of plug-and-play games, the company took its quarter-on-quarter financials from a net loss of $49 million last year to a profit of $189,000 this year.

Gross profit for the quarter (in finance lingo: sales revenue minus the cost of sales) also took a small leap the past quarter. For the quarter, gross profit increased to $8.4 million compared to $5.4 million for the same quarter last year.

Majesco ended the quarter with working capital of $62.1 million, with $60.5 million of that total coming from proceeds raised by the company's going public in January of this year.

Basing its outlook for the full fiscal year (through January 31, 2006) on the upcoming June release of Psychonauts for the PlayStation 2, the recent release of Advent Rising for the Xbox and PC, as well as its TV Arcade lineup for holiday 2005, which includes Paintball, Texas Hold 'Em, Strawberry Shortcake, and Frogger, Majesco management reiterated its guidance for the year, saying it expected net revenues of $175 to $185 million for the full year and attendant operating income of $16 to $18 million.

"We are entering the important second half of our fiscal year with confidence that we are well positioned to achieve our objectives for full year 2005," Carl Yankowski, Majesco's chairman and CEO, said in a statement today. "We remain focused on global growth, both organic and otherwise."

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