Majesco shares dive
Zumba Fitness publisher sees share value dip 34 percent after earnings report; confirms closure of Boston office, layoffs at QA facility.
Majesco shares tumbled 34 percent this morning to $0.69, a day after the Zumba Fitness publisher announced it would no longer provide quantitative financial data in its earnings reports moving forward.
"As a result of the weakness in demand for products on legacy console platforms and uncertainty around consumer adoption of the next-generation of consoles, management is modifying its practice of providing quantitative fiscal year revenue and earnings guidance," the company said in a statement. "Instead, for fiscal 2013, management is presenting a qualitative assessment of its outlook for financial results."
In addition, Majesco management said its effort to "better align operating costs with sales trends" has resulted in the closure of its social game studio in Foxboro, Massachusetts, and layoffs at its quality assurance office in New Jersey. The closure of the Massachusetts office had been rumored earlier this month.
“Having successfully navigated through industry transitions and periods of uncertainty in the past, we believe it is prudent to preserve our financial resources as new platforms are deployed," a statement from company CEO Jesse Sutton reads.
As for specific financial results, for the fourth quarter ended October 31, Majesco saw net revenue rise 6 percent to $26.6 million and a net loss of $2.7 million. Concerning the full year, Majesco net revenue jumped 6 percent to $132.3 million, with net income coming in at $4.4 million, compared to $11.1 million last year.
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