Majesco stock plummets as CEO quits
Publisher's shares battered in after-hours trading following executive exit and lowered earnings expectations.
Shares of Majesco ended the day Tuesday up slightly to $6.89. But that didn't last. The company's stock plummeted in after-hours trading, falling more than 50 percent to $3.41 on news that the company had sharply downgraded its financial outlook for the year and that its chairman and CEO, Carl Yankowski, was resigning effective immediately.
Yankowski joined the company only last August. He resigned "under a mutual agreement with the company," read a corporate statement.
While the CEO position remains unfilled for now, Majesco's board of directors named current board member Jim Halpin as acting chairman of the board.
Majesco had previously projected annual net revenue of between $175 and $185 million and operating income, or profit, of $16 to $18 million. Revised expectations now peg net revenue for its 2005 fiscal year to be between $120 million and $125 million, with an operating loss of $16 to $19 million. Majesco's 2005 fiscal year ends on October 31.
The company cited several causes for the lowered guidance. It said the primary reason for losses was weak summer sales. Specifically, Psychonauts and Advent Rising have recently been singled out as being the highest-profile retail disappointments.
Another factor Majesco mentioned was "the movement of one of its key movie-based video game titles out of the fiscal year in order to better coincide with the related theatrical release." While the game was not named, Majesco recently acquired the game rights to the big-screen version of Aeon Flux, which stars Charlize Theron. The sci-fi thriller is still tentatively scheduled for release this fall, meaning the video game iteration would likely be released during Majesco's 2006 fiscal year.
At press time, after-hours trading volume was heavy, as the 604,250 shares traded after hours were nearly equal to today's regular trading session volume of 901,051.
Content you might like…
-
Majesco Q2 revenue up 60.8%, but losses hit $1.7 million
The publisher's revenue spikes to $20.5 million for Q2 2009 as it lauds its cash-cow Cooking Mama franchise; company also reports a near-$2 million net loss during the same period.
- Jun 15, 2009
Users who looked at this article also looked at these content items.
Hot Stories
Newsmakers
-
World of Warcraft target of latest suit from PSN plaintiff
San Jose man adds Activision Blizzard to growing list of courtroom opponents, takes issue with MMOG fees, alleges ill effects on mental health, seeks $1 million. Full Story
- Posted Nov 24, 2009 4:58 pm PT
- 781 Comments
-
Top US Nintendo PR exec resigns
VP of corporate affairs Denis Kaigler leaves after less than two years at Nintendo of America; no replacement yet named. Full Story
- Posted Nov 23, 2009 4:26 pm PT
- 115 Comments
Featured Stories
-
Assassin's Creed II slays 1.6 million in one week
Ubisoft says internal sales reports shows critically lauded sequel outselling original by 32 percent. Full Story
- Posted Nov 24, 2009 9:22 am PT
- 310 Comments
-
Microsoft patents in-game guide system
Researcher's 2008 patent for "User-Powered Always Available Contextual Game Help" shows Microsoft is considering an in-game guide similar to that of New Super Mario Bros. Wii. Full Story
- Posted Nov 24, 2009 5:13 pm PT
- 254 Comments
-
2 million Xbox Live users Facebooked, a-Twitter
Microsoft announces around 10% of its subscribers log onto social networks during first week of 360 integration; 1 million check out Last.fm, 1.7 million peruse Zune video store. Full Story
- Posted Nov 24, 2009 11:27 am PT
- 141 Comments
-
Datel suing Microsoft over memory-unit lockout
British maker of high-capacity, low-price storage units takes legal action against software giant, accusing it of antitrust violation. Full Story
- Posted Nov 23, 2009 5:28 pm PT
- 518 Comments
-
Modern Warfare 2 classification appealed in Australia
South Australian Attorney-General Michael Atkinson says game allows players to be "virtual terrorists;" Classification Board says no appeal has been received to date. Full Story
- Posted Nov 23, 2009 9:05 pm PT
- 267 Comments
Submit News
Related Game
- Majesco Games
- Double Fine Prod.
- 3D Platformer
- Release: Apr 26, 2005
- ESRB: Teen
Related Games
Recent News
-
Blizzard game design chief Rob Pardo and lead designer Jeff Kaplan discuss acclaimed fantasy franchise's long history, from Orcs and Humans to the World...
2 Comments
Sign in / Sign up