Majesco returns to profitability in '08
Once-crippled game maker reverses fortunes during 2008 fiscal year, posting $2.1 million income on revenues of $63.9 million.
Here's a shock for anyone who has kept abreast of Majesco's epic rise and fall over the past few years: The company has attained profitability during its 2008 fiscal year. The news comes by way of the company's fourth-quarter fiscal results, released this week, which revealed that the August-October quarter sales reached $18 million, a 51 percent spike from a year before. Fiscal year-end revenues stood at $63.9 million, an increase of 25 percent from the year-ago period.
"Our strong financial performance in 2008 reflects the successful execution of our plan and confirms we're on the right path," said CEO Jesse Sutton, who was named to the company's highest position in December 2007. "For the year, we exceeded our updated guidance on revenue and achieved profitability."
In marked contrast to Majesco's fiscal 2007 performance, the company pulled in a net income of $2.1 million for the year ended October 31, up from a net loss of $4.8 million a year ago. Operating income also saw a significant turnaround during the year, landing $1.5 million in the black as compared to a loss of $3.8 million in fiscal 2007.
As part of its turnaround roadmap established in 2007, Majesco shifted its focus from top-tier, big-budget game development to mass-market-friendly casual titles primarily for Nintendo's best-selling Wii and DS. The move has paid dividends for the New Jersey-based game maker, with its Cooking Mama franchise, Jillian Michaels' Fitness Ultimatum, Wild Earth, and Wonder World all named by Majesco as top sellers during the year.
In addition to recapping its fiscal 2008 performance, Majesco provided initial guidance for the coming year. The company expects to maintain profitability in 2009, with net revenues projected to surpass $70 million. In all, Majesco plans to release 31 titles during the year, 15 for the Wii and 16 for the DS.
"We expect to further build on our success in 2009," said Sutton in a statement. "We believe we are well positioned to benefit from consumer trends given our focus on the fastest-growing segment of the gaming industry. We have a proven and disciplined business model and a management team that is committed to growing the company in a profitable manner."