Majesco auditors issue warning
BloodRayne publisher reveals an independent accounting firm has issued a "going concern modification" about its last fiscal year.
At the beginning of the week, Majesco reported a greatly reduced loss for the fourth quarter of its fiscal year, which ended on October 31, 2006. It then announced a potentially lucrative DS game featuring The New York Times' ever-popular and often-maddening crosswords. By week's end, the company had made headlines again, albeit for a less positive reason.
Today after the Wall Street markets closed, Majesco filed a 10-K notice with the SEC saying that its independent accounting firm, Goldstein Golub Kessler LLP, had issued it a warning of sorts. Specifically, the publisher said its earnings report for the financial year ending October 31, 2006, now contains a "going concern modification." That means the accounting firm now has "substantial doubt" that Majesco can continue to be viable in the face of a predicted 10 to 15 percent decline in income in 2007.
The news wasn't particularly welcome, as it blunted a modest rise in Majesco's stock. After rising 6 cents during the day to $1.76, it had slipped $0.20 in after-hours trading as of press time.