Majesco Reports Financial Losses, Layoffs
The publisher also said that it will stop offering "quantitative fiscal year revenue and earnings guidance."
Majesco's fourth quarter and full year financial results are out, and the news isn't great. The company reported that revenues for the fiscal quarter ended October 31, 2012 were $26.6 million, a six percent increase over the previous year, but at the same time it suffered a net loss of $2.7 million for the quarter. Full year revenues were $132.3 million, also a six percent gain over 2011, resulting in net income of $4.6 million, down slightly from the $6.8 million reported in fiscal 2011.
"We met our revenue expectations in fiscal 2012 against the backdrop of weak industry-wide sales. The Zumba Fitness franchise benefited from the release of Zumba Fitness 2 in the first quarter, Zumba Fitness Rush in the second quarter and Zumba Fitness Core in the fourth quarter. Zumba is now firmly entrenched as the second bestselling fitness franchise ever with over eight million units sold worldwide. We ended the year with $31.3 million in combined cash and availability from our factor and no long term debt," Majesco CEO Jesse Sutton said in a statement. "For fiscal 2013, we expect declining sales as our core products on legacy platforms decline, and we will be offering a smaller slate of new handheld and console titles than we introduced in fiscal 2012."
What Majesco won't be offering, however, is conventional fiscal guidance for the future. "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. "Instead, for fiscal 2013, management is presenting a qualitative assessment of its outlook for financial results."
I'm not entirely sure what a "qualitative assessment" is, but I suspect it will be a lot trickier to nail down than the hard numbers that come with conventional guidance statements. It's also not necessarily a good sign for Majesco's immediate future: THQ did the same thing last November, just weeks before it filed for bankruptcy.
Unfortunate for the employees, certainly, but I can't feel sympathetic for the company as a whole because they haven't made anything I'm interested in. I can't relate with them.
Also, I don't have a bloody clue what all the economic-speak actually means :D
I'll hazard a guess: They're not doing well, they're not making enough money to pay their debts or investors, and they need to cut the business in half the save on expenses.
Can someone correctly me if I'm wrong?
Wait, Majesco still exists?
Where the fuck is my Advent Rising sequel?!