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.
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.