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Majesco Announces Slowed Q2 Earnings

by Les Thomas - June 26, 2008, 9:09 pm PDT
Total comments: 2 Source: Majesco

List of announced 2008 lineup composed almost exclusively of Wii and DS titles.

Majesco Inc. recently released financials for the second quarter of 2008. The report showed a slight slowing trend for sales and profit compared to the same quarter in 2007. However, the company's combined earnings for the first two quarters of 2008 are up from last year nearly 50%. Majesco Entertainment released six games this quarter, an overwhelming four were on the Nintendo DS system.

"We launched six new titles in the second quarter and 10 titles year to date. Two titles shipped for Nintendo's Wii system, seven for Nintendo's DS handheld, and one title for the PSP, aimed to maintain our focus on the family-friendly market," said Jesse Sutton, CEO of Majesco Inc., "For the first six months of 2008, our combined DS and Wii business, which is at the core of our mass market strategy, is up roughly 50% versus last year. We remain on pace to achieve…full fiscal year net revenue between $53 and $58 million."

For the three months ended April 30, 2008 to April 30, 2007, net revenue was $12.8 million in 2008 compared to $14.6 million in 2007. Majesco's rate of return showed the same trend. Gross margin was 34.7 percent, compared to 42 percent in 2007. For the six Months ended April 30, 2008 to April 30, 2007, net revenue was $31.4 million in 2008 compared to $29.1 million in 2007. Gross margin was 38 percent compared to 36.6 percent in the same period during 2007.

Majesco points to release of Cooking Mama: Cook Off for Wii in Q2 2007 as the chief indicator of a slower second quarter this year. The company provided different metrics that factor in 2007 equity financing and litigation costs into financial projections. Majesco raised $5.9 million in financing in the last quarter 2007 alone and point to the outside investment as the reason for the 2008 reduction in stock price, non-cash stock gains, as well as useful in projecting earnings for the final two quarters.

In the past, Majesco has done everything from manufacturing Sega Genesis consoles, to packaging television and movie video content in GBA cartridges, and publishing a series of highly visible but commercially unsuccessful titles in late 2005. This led to the development of their current strategy: games that appeal to the new gaming audience almost exclusively for the Nintendo Wii and DS. "We continue to execute on our mass market, family-friendly strategy and build on our presence in one of the industry's fastest growing genres," said Sutton.

Following is an excerpt of their earnings press release listing upcoming games.

Fiscal 2008

To date, the Company has announced the following titles that are expected for release during the rest of fiscal 2008:

Nancy Drew: The Mystery of the Clue Bender Society for DS is the follow up to The Deadly Secret of Olde World Park and offers mystery buffs and Nancy Drew fans a fresh interactive caper with new gameplay elements including snowmobiling and boating.

Babysitting Mania for DS is based on the hit online PC simulation from Gogii Games that challenges players to manage unruly kids, lists of chores and out-of-control houses without losing their cool.

Zoo Hospital for Wii is the first Wii game of its kind that lets players experience a veterinarian's job by performing various surgical procedures on 48 different animals that they can then care for in their enclosures to ensure a healthy recovery.

Three adventure games for younger Wii players from the best-selling, award-winning Humongous properties catalog: Freddi Fish in Kelp Seed Mystery, Pajama Sam in Don't Fear the Dark and SPY Fox in Dry Cereal. All three integrate the Wii Remote in point-and-click style adventure play that the entire family can enjoy together.

Rollin' Rascals for DS challenges players to roll adorable round pets around obstacles and into identical twos to clear them from the game board in this addictive puzzler.

Air Traffic Chaos for DS lets players take charge as an air traffic controller at the world's busiest airports so they can safely maintain an efficient flight schedule and order on the runways.

Blast Works: Build, Trade, Destroy for Wii, is an innovative interpretation of a geometric shooter that lets players build their own personalized game experiences and then share their creations with friends via WiiConnect24.

Wonder World Amusement Park for Wii brings to life a fully 3D world of boardwalk games, rides and prizes across multiple themed areas that players can explore with personalized avatars.

Cake Mania® 2 for DS is the sequel to the best-selling DS game based on Sandlot Games' award-winning downloadable title. Players lead Jill Evans through more than 200 different levels of baking and frosting madness with an all-new customer base, exotic locations, kitchen upgrades and multiple endings. A playable demo will also be featured in approximately 10,000 Nintendo DS Download Stations at major retail locations nationwide this summer.

Orchard for online and retail PC is a simulation that challenges players to manage all facets of a retail business, including planting and harvesting crops, developing new recipes, buying ingredients and hiring a workforce.

Cooking Mama: World Kitchen for Wii is the sequel to the best-selling Cooking Mama Cook Off game that has sold more than 430,000 units and challenges players to use the Wii Remote as the ultimate cooking utensil.

First Quarter 2009 ending January 31, 2009:

To date, the Company has announced the following titles that are expected for release during the fiscal first quarter of 2009:

Major Minor's Majestic March for Wii marks the return of the creative team behind the renowned PaRappa the Rapper franchise-legendary game designer and multimedia musician Masaya Matsuura and famed New York artist Rodney Alan Greenblat. The game turns the Wii Remote into a "special" baton the bandleader Major Minor uses to keep tempo, recruit new band members and pick up valuable items, while marching through whimsical locations.

Cake Mania: In the Mix! for Wii marks the first introduction of Sandlot Games' best-selling PC title on the Wii system. The game integrates motion-based control with the series' signature cake-baking multi-tasking gameplay style.

Our House for Wii turns the Wii Remote into the ultimate creation tool that lets players design, build and decorate their own personalized trophy home, and then share it with friends in an online neighborhood via WiiConnect24.

Our House for DS is the first game from Majesco Studios Santa Monica. This companion game to the Wii version lets players work as contractors and then use their work-for-hire earnings to design, build and decorate their own personalized trophy home.

Wonder World Amusement Park for DS is the second game from Majesco Studios Santa Monica. This companion game to the Wii version launching in July lets players experience a complete day at the park in the palm of their hands. Using the Touch Screen, players can toss, drive, shoot, whack, fish and spin in more than two dozen mini-games throughout five themed zones.

Jillian Michaels' Fitness Ultimatum 2009 for Wii is the first game of its type to combine a celebrity fitness trainer with the Wii and innovative Wii Fit Balance Board™ accessory to offer players a fun and entertaining way to get in shape.

Talkback

EnnerJune 26, 2008

Good speed, Majesco.
Though... it's not like I particularly like their games. And I probably wouldn't care much if they exited the business... still, good speed!

So many...games...I want...to buy!!!

Of the games listed above, I count 11 Wii Games, 7 DS games, and 1 PC title... DAMN THAT PC TITLE!!!

Quote:

Majesco points to release of Cooking Mama: Cook Off for Wii in Q2 2007 as the chief indicator of a slower second quarter this year.

Don't underestimate Mama.

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