Majesco Entertainment Reports 3Q Results

COOL | Quote | Chart | News | PowerRating -- Majesco Entertainment, a provider of video games for the mass market, reported financial results for the fiscal third quarter ended July 31.

In a release, the company stated:

- For the third quarter ended July 31, Majesco's net revenues increased 44 percent to $14.5 million versus the year ago period. During this same period, the company reported operating income of $0.3 million compared to an operating loss of $1.3 million in the third quarter of 2007. Net income for the quarter was $0.5 million versus a net loss of $1.5 million in 2007. The company's basic and diluted earnings per share for this quarter were $0.02 compared to a loss of $0.06 in the same period last year. As discussed below, the company's net income included a $0.4 million gain in the change of the fair value of warrants in the quarter.

- For the nine months ended July 31, Majesco's net revenues increased 17 percent to $46 million versus the year ago period. During this same period, the company reported operating income of $2.4 million compared to an operating loss of $2.3 million. Net income through nine months was $3.0 million versus a net loss of $3.8 million in 2007. The company's basic and diluted earnings per share for the first nine months of fiscal 2008 were $0.11 compared to a loss of $0.16 in 2007. As discussed below, the company's net income included a $1.0 million gain in the change of the fair value of warrants year to date.

Jesse Sutton, Chief Executive Officer of Majesco Entertainment, said, "We are extremely pleased with our execution during the quarter as we exceeded all of our expectations. Our third quarter results highlight our ability to execute and deliver on our mass market, family friendly strategy and the growth potential that is inherent in our business model. Further, our financial results demonstrate the significant progress we have made in regards to profitability as we drive revenues and continue to prudently manage our costs. For the third quarter 2008, net sales increased 44 percent to $14.5 million, while gross margin grew to 43 percent. The growth in both net sales and margin is attributable to the 87 percent increase in our domestic sales driven by the continued success of our 'Cooking Mama' franchise, our newly released 'Wonderworld Amusement Park' for Wii, and strong demand for 'Cake Mania 2' for DS. Looking ahead to the remainder of fiscal 2008, we have raised our fiscal year revenue guidance to a range of $58 million to $60 million. In addition, we expect to be profitable for fiscal 2008. This performance is despite the move of our Cooking Mama sequel for Wii closer to the December holiday sales season and into our fiscal first quarter 2009.

"We remained focused on delivering titles targeted toward the mass market, casual gamer as we launched four new titles in the third quarter, bringing the number of titles released in the first nine months of fiscal 2008 to 14. Two titles shipped in the quarter were for Nintendo's Wii system and two were for Nintendo's DS handheld," continued Sutton. "We are making significant progress in developing our intellectual property portfolio, as our studio is on schedule to release its first title 'Our House' for DS and recently announced its second title 'Wonderworld Amusement Park' for DS, both of which are set for release in fiscal 2009. We remain poised to further improve our financial position as we continue to deliver on our strategy, expand our revenue base and build our intellectual property assets."

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