Majesco takes Q2 loss

Despite a rise in revenue, the Nintendo-centric publisher goes $1.3 million in the red, thanks to massive legal bill.

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In March, Majesco announced that it would focus on Nintendo platforms. The move was an attempt by the publisher to try and turn its fortunes around following a bumpy 2006. Though not as bad as 2005, when the company's stock price plummeted from over $15 to around $1 and its shareholders sued the company, the year did see a management shake-up, its interim CEO depart, and several delisting threats from the NASDAQ stock exchange.

Though a warning from auditors still looms over its finances, Majesco today reported $14.2 million in net revenue--that is, sales after taxes--for the quarter ending April 30, 2007. The figure was a 30 percent increase when compared to the $11.2 million it took in during the same period in 2006. However, the company still suffered a $1.3 million net loss for the quarter, thanks to the $2.5 million in legal fees it incurred from its ongoing court battle with angry shareholders.

Despite the hefty attorney bill, the increase in Majesco's quarterly revenue was proof that its self-described "mass-market strategy" is paying off. Some 84 percent of revenue for the quarter was from new games, with 62 percent coming from console games and 37 percent from handhelds. (Figures are rounded.) One platform--the Wii--was responsible for 55 percent of the company's income alone, with the Nintendo DS accounting for 33 percent and the remaining 12 percent coming from other platforms.

Notable Wii releases during the February-April quarter were Cooking Mama: Cook Off and Bust-A-Move Bash!, while the DS got Toondoku and Cake Mania. For the current May-July quarter, Majesco's main release is New York Times Crosswords for the DS, which shipped last month.

As for the rest of its 2007 fiscal year, Majesco is now predicting that its annual net revenue will fall 10 to 15 percent year-on-year to $66.7 million. Of that, 65 to 70 percent will be generated by new releases, such as Operation: Vietnam (DS), The Wild West (DS), Turn It Around (DS), Nancy Drew: Deadly Secret of Olde World Park (DS), Holly Hobbie & Friends (DS), and Kengo: Legend of the 9 (Xbox 360). The company also plans to ship one Wii and one DS title during the quarter, but offered no details on the games.

Discussion

27 comments
705H1R0
705H1R0

Way to support the company, shareholders. Go ahead, take MORE money from them, that will help.

Whitewind617
Whitewind617

if they can get a new psychonauts out, people might buy it this time. And u know what else they might need? ADVERTISING FOR IT.

bigmick07
bigmick07

Is the game industry still doing good? because all gamespot's been reporting lately is negative profits and losing millions and millions of dollars of various companies. Im pretty sure its still in good shape but with all these losses its pretty confusing

sphinx-shadow
sphinx-shadow

i bought cake mania and i rented cooking mama cook off and i plan to buy it it rocks i am surprised, they didn't do as well but if you did not play cooking mama for the Wii give it a try it is will surprise some people it as great controls and if you have a friend it it makes it even more fun.

Twiztid-Maddox
Twiztid-Maddox

I agree with everyone who says make next gen BloodRayne... they screwed themselves in the foot when they got rid of The Darkness... and Demonik would've been a really interesting game... but since those aren't with Majesco anymore, that's what happens...

Alunanite
Alunanite

I have said it before and I will say it again. The Wii needs an Advent Rising port. Motion Sensing flinging and shooting OMG.

ketsuatama
ketsuatama

I wonder if those dear shareholders will now approve a huge salary increase for the management team!

PS34EVR
PS34EVR

Please Finish Advent Rising Triligy or just Finish the Second Game and end it well or Sell it to someone who can. Bloodrayne we need a good next gen version. Or sell that one too.

Sagacious_Tien
Sagacious_Tien

Pretty bad, but things are looking to turn around. They don't have the revenue for the larger titles, and they should keep up with the casual titles. Perhaps they could bid for a franchise game, I believe Bomberman would be a good fit for them.

Lazyimperial
Lazyimperial

I thought Bloodrayne died after the abyssmal sequal and that god-awful movie. Regardless, I agree with Generic_Dude. Those poor blokes have been going downhill since 2005, and Cooking Mama and Cake Mania don't seem too cool to me.

headninjadog
headninjadog

They should sell Bloodrayne because as we can see, they won't do anything with it and they are just letting the property die. What a waste of an IP. Sell it to Capcom!

Generic_Dude
Generic_Dude

Solution? Stop making sucky games and your shareholders will become MUCH easier to deal with.

comthitnuong
comthitnuong

Add the bill to the fact that they haven't come out with a hard hitter in a while and you have a bad situation.

astro64th
astro64th

I'm always amazed at the titles that Majeso publishes. They pick ones where it should be obvious that the game might not be a success. But regardless I'm glad to see they are finally doing better cause they do release some nice titles to fill in gaps in the release list. Such as the Crossword DS title. I think that's a great addition to the DS library. I still feel bad though that Advent Rising didn't do better for Majesco. I mean the game looked great, and it's really sad that the publisher had to flub it up by releasing it too early. It's still a game I might like to pick up for cheap. But it had so much promise and it was all wasted. It's interesting to see them focusing on Nintendo platforms though, mabye they will actually turn their profit around, although reading the above list of games coming out doesn't give me confidence.

meimnobody
meimnobody

Turn it around is the name of a Japanese DS game. Forget the name but people thought it was never coming to the states.

Unstoppable_1
Unstoppable_1

The problem is you got corrupt a holes at the top who ruin the company for everyone else. Where have all the honest CEO and Executives gone?

lamprey263
lamprey263

Jeez, I remember Advent Rising had some "Win $1,000,000" or something like that on every box. Maybe they honored too many prizes. :P

firedrakes
firedrakes

5 million for bloodrayne right. i ask myself dam intrested in buying the right but need capital...

haseeb_1989
haseeb_1989

I hope they close down they make bad games.

hunter8man
hunter8man

Majesco, more Bloodrayne please!

F1sTDaCuffS
F1sTDaCuffS

this company must be laundaring money, they take a lost every quater yet they still stay open there as about as bad as midway.

NWA_31
NWA_31

@mcxps3: Do you even know what you're talking about ? The company is very successful, but lost money due to the $2.5 million spent in legal fees. :|

casinater
casinater

Well at least they were smart by going to the brand with the biggest market!...Nintendo!!!

mcxps3
mcxps3

Shame on u guys u should know its not very likely to be very successful publishing in nintendo platforms Nintendo is the Major publisher who make more on the brand then the other publishers combined.