Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Agencies
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Hamburger menu
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS

Majesco Entertainment Company Reports Third Quarter Fiscal 2010 Financial Results

Significantly Reduced Net Loss on Lower Revenues from Prior Year


News provided by

Majesco Entertainment Company

Sep 14, 2010, 04:01 ET

Share this article

Share toX

Share this article

Share toX

EDISON, N.J., Sept. 14 /PRNewswire-First Call/ -- Majesco Entertainment Company (Nasdaq: COOL), an innovative provider of video games for the mass market, today reported financial results for the third quarter ended July 31, 2010.

For the third quarter ended July 31, 2010, Majesco's net revenues decreased 29 percent to $12.2 million versus $17.2 million in the same period a year ago. During this same period, the Company reported an operating loss of $1.7 million, compared to an operating loss of $4.2 million in the third quarter of 2009.  For the quarter, Non-GAAP operating loss was $1.4 million versus Non-GAAP operating loss of $3.3 million in 2009. Net loss for the quarter was $1.6 million versus a net loss of $5.2 million in 2009. On a Non-GAAP basis, net loss for the quarter was $1.4 million compared to Non-GAAP net loss of $3.5 million last year.

The Company's basic and diluted net loss per share for the quarter ended July 31, 2010 was $0.04 compared to a net loss per share of $0.18 in the same period last year. For the same quarter, Non-GAAP basic and diluted net loss per share was $0.04 compared to net loss per share of $0.12 last year.

For the nine months ended July 31, 2010, the Company's net revenues decreased 26 percent to $52.3 million versus the year ago period.  During the same period, the Company reported an operating loss of $0.8 million compared to an operating loss of $1.1 million in the same 2009 period.  Non-GAAP operating income for the nine month period was $0.9 million compared to $2.0 million for the comparable 2009 period.  For the nine months ended July 31, 2010 net income was $0.6 million compared to net loss of $2.7 million for the nine months ended July 31, 2009.  For the same period, Non-GAAP net income was $0.2 million this year compared to $1.1 million in 2009.

The Company's basic and diluted earnings per share for the nine months ended July 31, 2010 was $0.02 and $0.01, respectively, compared to a net loss per share of  $0.10 for the corresponding period in 2009.  The Company's Non-GAAP basic and diluted earnings per share for the nine months ended July 31, 2010 was $0.01 compared to $0.04 in the corresponding 2009 period.

Jesse Sutton, Chief Executive Officer of Majesco, said, "Our Company's third quarter results were in line with our internal expectations.  The revenue decline for the quarter was as expected and was a result of a smaller release slate compared with the third quarter of 2009.  Tetris Party Deluxe did well, and will likely be one of our best-selling titles of 2010.  Importantly, because of our tight cost controls, we significantly reduced our operating loss despite the revenue decline.  We remain excited about our upcoming titles scheduled for release during the balance of the fiscal year and this holiday season.  Brand new motion control devices coming from both Microsoft and Sony should be a catalyst for the industry, and Majesco will be there to support both this holiday.  Our management team is focused on improved profitability and is totally committed to building long-term value for our shareholders."

Highlights

  • Selling and Marketing expense declined to $1.6 million, or 14% of sales, down from 25% in the same period in 2009.
  • Total operating expenses declined to $4.5 million, down 42% from the same period in 2009.
  • At the end of the quarter and nine months ending July 31, 2010 the Company had $10.5 million in cash and cash equivalents, up from $6.3 million on July 31, 2009.
  • Shipped Tetris Party Deluxe, for both the Wii and Nintendo DS, which was a hit at retail and built on the past success of Tetris Party for WiiWare.  

Announced Product Line-up

Fourth Quarter ending October 31, 2010  

To date, the Company has announced the following titles that were or are expected to be released during its fourth quarter:

  • Crafting Mama for Nintendo DS is the newest brand extension of the Cooking Mama franchise that has sold nearly seven million units in North America. Using the stylus as a universal crafting tool, players will sew, mold, glue, cut and paint under Mama's masterful direction as they create 40 different projects, from patchwork quilts to earrings, candles and vases.
  • Greg Hastings Paintball 2 for Xbox 360® and Wii is the most realistic paintball experience to date from the most successful name in the sport. The game introduces more than 10 single and multiplayer game modes, each staged in all-new paintball locations based on 62 actual fields around the world. Featuring three new event branches -- Tournament Speedball, Recball, and Tournament Woodsball -- players can build and develop their team of professional ballers and even cheat to stay in the game.
  • My Baby 3 & Friends for Nintendo DS is the third installment in the My Baby franchise that has sold nearly 2 million units worldwide. My Baby 3 lets players experience the joy of parenting as they feed, bathe, change and cuddle with their in game baby. What's more, the game also sparks new social development skills via interaction with another baby and puppy.
  • Serious Sam HD: The Second Encounter for Xbox LIVE Arcade continues the glorious high-definition chaos with a slick new graphic presentation, intense multiplayer action, and an onslaught of all-new levels, enemies and bosses from the golden age of first-person shooters.
  • Swords for Wii pits players against some of the most formidable adversaries in history using the Wii Remote with Wii MotionPlus as their blade for accurate 1-to-1 motion based battles.
  • Flip's Twisted World for Wii is a unique puzzle platformer that stars Flip, a magician's apprentice who mistakenly gets sucked into an alternate universe where up and down are only a matter of perspective. Players will help Flip navigate his puzzling world by rotating the environment 180 degrees in any direction with a simple twist of the Wii Remote.
  • Summer Camp Showdown for Wii is a motion-based adventure where players vie for the upper hand in sports and pranks to determine who rules the woods.
  • Dawn of Heroes for Nintendo DS is a tactical role playing game that combines classic RPG concepts -- including character development, epic combat, quests and puzzles -- with a humorous style.

First Quarter ending January 31, 2011

  • Babysitting Mama for Wii stars the iconic Mama from the best-selling Cooking Mama franchise and features an exciting new play mechanic. This innovative simulation game will be delivered to consumers with an adorable plush baby doll that the babysitter tucks the Wii Remote into in order to interact with the doll and game at the same time in 40 different activities.
  • Zumba Fitness® for Wii, PlayStation®Move and Kinect for Xbox 360 is a one-of-a-kind exercise program that pairs Latin rhythms with red-hot international dance steps so you can have a blast as you party your way into shape. Through invigorating, high calorie-burning fitness classes, Zumba Fitness® has helped melt the pounds and inches off seven and a half million Zumba-enthusiasts in more than 75 countries.
  • Monster Tale for Nintendo DS is being developed by the key leads behind the critically acclaimed Henry Hatsworth and the Puzzling Adventure. The game mixes platform game play on the top screen with a deep pet-raising game on the Touch Screen to create a dynamic, one-of-a-kind adventure. The heroes of this intriguing tale are little Ellie and a mysterious young monster named Chomp who together set out to reclaim the Monster World from the Kid Kings and their enslaved creature pets.

Fiscal 2010 Outlook

Our final holiday release schedule has resulted in a shift of some of our new releases into fiscal 2011, or in the case of Crafting Mama, to the final week of fiscal 2010.  Specifically, Zumba Fitness, originally scheduled for a late October launch, will now launch in mid-November to be better aligned with the Microsoft Kinect launch window and ship simultaneously across all platforms (Wii, Xbox 360, and PlayStation 3).  Greg Hastings Paintball 2, originally planned for the PlayStation 3 in September, will instead launch in early 2011 as a downloadable title for the PlayStation Network (PSN).  As a result, the revenue mix for the fourth quarter of 2010 will be weighted less to new releases and will shift some revenue and earnings from fiscal 2010 into fiscal 2011.  We now expect to achieve approximately $77 to $80 million in revenue for the fiscal year, down from prior expectations of $80 million.  Accordingly, we continue to expect to be profitable in FY10, but are currently expecting Non-GAAP EPS in the range of $0.01 to $0.03, down from prior expectations of $0.05, and compared to a net loss of $0.15 in the prior year.  The Company assumes the release of approximately 25 SKUs in 2010, including 11 DS and 12 Wii, with 7 titles released in the fourth quarter.  We also expect that roughly 63% of our revenue will come from DS titles; 33% from Wii titles and 4% from all other platforms.  

Conference Call

At 4:30 PM ET today, management will host an earnings conference call. To access the call please dial 1-800-860-2442. Please dial in approximately 10 minutes prior to the start of the conference call. The conference call will also be broadcast live over the Internet and available for replay for 90 days from the "Investor Info" section of the Company's Web site at http://www.majescoentertainment.com. In addition, a replay of the call will be available via telephone for seven days beginning approximately two hours after the call. To listen to the telephone replay in the U.S., please dial 1-877-344-7529 and for international callers, dial 412-317-0088.  Enter access code 444180#.

Generally Accepted Accounting Principles (GAAP) and Non-GAAP Metrics

To facilitate a comparison between the three months ended July 31, 2010 and 2009, the Company has presented both GAAP and Non-GAAP financial results. GAAP financial measures, including operating income, net income, and basic and diluted earnings per share, have been adjusted to report certain Non-GAAP financial measures.

These Non-GAAP financial measures exclude the following items from the Company's condensed consolidated statements of operations:

  • Expenses related to non-cash compensation
  • Net proceeds from the sale of certain state income tax net operating loss carryforwards
  • Change in fair value of warrants
  • Settlement of certain litigation in 2009
  • Costs of operating a development studio in California in 2009
  • Severance costs

These Non-GAAP measures are provided to enhance investors' overall understanding of the Company's current financial performance and the Company's prospects for the future. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.

For more information on these Non-GAAP financial measures, please see the tables in this release captioned "Reconciliation of GAAP and Non-GAAP Financial Measures".

About Majesco Entertainment Company

Majesco Entertainment Company is a provider of video games for the mass market. Building on more than 20 years of operating history, the company is focused on developing and publishing a wide range of casual and family oriented video games on Wii™, Nintendo DS™ and other leading systems. Product highlights include Cooking Mama™, TETRIS Party Deluxe, Alvin and the Chipmunks: The Squeakquel and Jillian Michaels' Fitness Ultimatum. The company's shares are traded on the Nasdaq Stock Market under the symbol: COOL. Majesco is headquartered in Edison, NJ and has an international office in Bristol, UK. More information about Majesco can be found online at www.majescoentertainment.com. @Majesco is on twitter or at www.twitter.com/majesco.

Safe Harbor

Some statements set forth in this release, including the estimates under the headings "Outlook" contain forward-looking statements that are subject to change. Statements including words such as "anticipate", "believe", "estimate" or "expect" and statements in the future tense are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Some of the factors which could cause our results to differ materially from our expectations include the following: consumer demand for our products, the availability of an adequate supply of current-generation and next-generation gaming hardware, including but not limited to Nintendo's DS and Wii platforms; our ability to predict consumer preferences among competing hardware platforms; consumer spending trends; the seasonal and cyclical nature of the interactive game segment; timely development and release of our products; competition in the interactive entertainment industry; developments in the law regarding protection of our products; our ability to secure licenses to valuable entertainment properties on favorable terms; our ability to manage expenses; our ability to attract and retain key personnel; adoption of new accounting regulations and standards; adverse changes in the securities markets; our ability to comply with continued listing requirements of the Nasdaq stock exchange; the availability of and costs associated with sources of liquidity; and other factors described in our filings with the SEC, including our Annual Report on Form 10-K for the year ended October 31, 2009. We do not undertake, and specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

MAJESCO ENTERTAINMENT 2010 & 2011 RELEASE SCHEDULE


2010 GAMES 


Quarter 1

Quarter 2

Quarter 3

Quarter 4

Alvin and the Chipmunks: The Squeakquel Wii ($39.99) and DS ($29.99)

Data East Arcade Classics Wii, $19.99

Tetris Party Deluxe Wii and DS, $29.99

Serious Sam HD: The Second Encounter XBLA, 1200 points

My Hero: Firefighter DS, $19.99

Let's Draw DS, $19.99

Attack of the Movies 3-D Wii & 360, $29.99

Swords Wii, $29.99

My Hero: Doctor DS, $19.99

The Daring Game for Girls Wii and DS, $19.99

Super Speed Machines DS, $19.99

Greg Hastings Paintball 2 Wii and Xbox 360, $39.99

Hot and Cold: A 3D Hidden Object Adventure DSiWare, 800 points

Pizza Delivery Boy Wii, $29.99

Pirates PlundArrr Wii, $29.99

Crafting Mama DS, $29.99

A Boy and His Blob: Trouble on Blobolonia, Virtual Console, 500 Wii Points


Dance Sensation! Wii, $29.99

Flip's Twisted World Wii, $29.99

Hello Kitty Party, DS, $29.99



Dawn of Heroes DS, $29.99

Serious Sam HD: The First Encounter XBLA, 1200 points



My Baby 3 & Friends DS, $29.99




Summer Camp Showdown Wii, $19.99





2011 GAMES




Quarter 1


Babysitting Mama Wii, $49.99


Monster Tale DS, $29.99


Zumba Fitness for Kinect, Wii and Move, $49.99 Kinect, $39.99 Wii and Move


Greg Hastings Paintball 2 PSN, Price TBA



* Includes all released and announced titles to date. Prices subject to change for unreleased titles.

MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY

UNAUDITED SUPPLEMENTARY DATA

NET SALES BY PLATFORM


       Three Months Ended July 31,        

          Nine Months Ended July 31,           


 2010 

    %    

  2009   

    %    

  2010   

    %    

  2009   

    %    

Nintendo Wii

$ 4,624

  38.0%

 $ 6,223

  36.2%

 $15,275

  29.2%

 $37,636

  53.3%

Nintendo DS

 7,139

  58.7%

   9,582

  55.8%

     35,396

  67.7%

     29,467

  41.8%

Other

  390

   3.3%

   1,378

   8.0%

     1,594

   3.1%

     3,448

   4.9%

TOTAL

$12,153

  100.0%

 $17,183

  100.0%

 $52,265

  100.0%

 $70,551

  100.0%





Net Sales by Platform %




Forecast

Actual

Actual




2010

2009

2008


Nintendo Wii


33.1%

53.0%

34.0%


Nintendo DS


63.0%

42.8%

61.7%


Other


3.9%

4.2%

4.3%


TOTAL


100.0%

100.0%

100.0%

MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)



July 31,

2010

October 31,

2009


(unaudited)


ASSETS



Current assets:



Cash and cash equivalents

$  10,549

$  11,839

Due from factor

—

1,172

Accounts and other receivables, net

613

1,145

Inventory, net

3,503

6,190

Advance payments for inventory

738

3,126

Capitalized software development costs and license fees

5,457

3,678

Prepaid expenses

973

847

Total current assets

21,833

27,997

Property and equipment, net

478

447

Other assets

69

83

Total assets

$  22,380

$  28,527

LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities:



Accounts payable and accrued expenses

$  7,219

$  9,586

Inventory financing payables

370

6,053

Due to factor

961

—

Advances from customers

99

543

Total current liabilities

8,649

16,182

Warrant liability

214

626

Commitments and contingencies



Stockholders' equity:



Common stock — $.001 par value; 250,000,000 shares
 authorized; 38,611,151 and 38,553,740 shares issued and
 outstanding at July 31, 2010 and October 31, 2009, respectively

39

38

Additional paid-in capital

114,807

113,484

Accumulated deficit

(100,804)

(101,361)

Accumulated other comprehensive loss

(525)

(442)

Net stockholders' equity

13,517

11,719

Total liabilities and stockholders' equity

$  22,380

$  28,527


MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except share amounts)




Three Months Ended
July 31

Nine Months Ended
July 31


2010

2009

2010

2009

Net revenues

$  12,153

$  17,183

$  52,265

$  70,551

Cost of sales





Product costs

7,398

7,549

24,573

27,196

Software development costs and license fees

1,975

6,105

12,074

21,081

Loss on impairment of software development costs and license fees

—

—

1,021

170


9,373

13,654

37,668

48,447

Gross profit

2,780

3,529

14,597

22,104

Operating costs and expenses





Product research and development

720

1,201

2,361

3,906

Selling and marketing

1,641

4,226

6,225

11,559

General and administrative

2,004

2,211

6,394

6,692

Depreciation and amortization

43

71

140

209

Settlement of litigation and related charges, net

—

—

—

404

Loss on impairment of software development costs and license fees - cancelled games

116

61

276

441


4,524

7,770

15,396

23,211

Operating (loss)

(1,744)

(4,241)

(799)

(1,107)

Other expenses (income)





Interest and financing costs, net

82

204

703

884

Change in fair value of warrants

(183)

843

(412)

1,858

Loss before income taxes

(1,643)

(5,288)

(1,090)

(3,849)

Income taxes

—

(88)

(1,647)

(1,115)

Net (loss) income

$  (1,643)

$  (5,200)

$  557

$  (2,734)

Net (loss) income per share:





Basic

$  (0.04)

$  (0.18)

$  0.02

$  (0.10)

Diluted

$  (0.04)

$  (0.18)

$  0.01

$  (0.10)

Weighted average shares outstanding:





Basic

36,934,987

29,331,882

36,838,981

28,644,914

Diluted

36,934,987

29,331,882

37,142,649

28,644,914


MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)



Nine Months Ended
July 31,


2010

2009

CASH FLOWS FROM OPERATING ACTIVITIES



Net income (loss)

$557

$(2,734)

Adjustments to reconcile net income to net cash provided by operating activities:



Depreciation and amortization

140

209

Change in fair value of warrants

(412)

1,858

Share-based litigation settlement

—

404

Fair value of warrant issued for services

20

—

Non-cash compensation expense

1,304

1,255

Loss on disposal of assets

19

—

Provision for price protection and customer allowances

2,876

3,088

Amortization of software development costs and license fees

3,629

8,902

Loss on impairment of software development costs and license fees

1,297

—

Changes in operating assets and liabilities:



Due from/(to) factor

(940)

(3,065)

Accounts and other receivables

672

1,498

Inventory

2,672

2,706

Capitalized software development costs and license fees

(6,705)

(10,396)

Prepaid expenses and other assets

2,270

83

Accounts payable and accrued expenses

(2,115)

46

Advances from customers and other liabilities

(676)

(1,365)

Net cash provided by operating activities

4,608

2,489

CASH FLOWS FROM INVESTING ACTIVITIES



Purchases of property and equipment

(192)

(119)

Net cash used in investing activities

(192)

(119)

CASH FLOWS FROM FINANCING ACTIVITIES



Inventory financing

(5,684)

(1,540)

Net cash used in financing activities

(5,684)

(1,540)

Effect of exchange rates on cash and cash equivalents

(22)

(68)

Net (decrease) increase in cash and cash equivalents

(1,290)

762

Cash and cash equivalents — beginning of period

11,839

5,505

Cash and cash equivalents — end of period

$10,549

$6,267

SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES



Cash paid for interest

$710

$871

Litigation settlement costs paid in stock

$—

$1,872


MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited, in thousands, except share amounts)










Three Months Ended


Nine Months Ended


31-Jul


31-Jul


2010


2009


2010


2009









GAAP operating (loss) income

$                  (1,744)


$               (4,241)


$             (799)


$         (1,107)

Settlement of litigation and related charges, net (1)

-


-


-


404

Non-Cash Compensation (3)

393


450


1,326


1,255

Severance (4)

-


-


403


-

California studio (5)

-


445


-


1,404

Non-GAAP operating (loss) income

$                  (1,351)


$               (3,346)


$              930


$          1,956









GAAP net (loss) income

$                  (1,643)


$               (5,200)


$              557


$         (2,734)

Settlement of litigation and related charges, net (1)

-


-


-


404

Change in fair value of warrants (2)

(183)


843


(412)


1,858

Non-Cash Compensation (3)

393


450


1,326


1,255

Severance (4)

-


-


403


-

California studio (5)

-


445


-


1,404

Net proceeds from sale of NJ state operating  loss carryforwards (6)

-


-


(1,656)


(1,115)

Non-GAAP net (loss) income

$                  (1,433)


$               (3,462)


$              218


$          1,072









GAAP net (loss) income per diluted share

$                    (0.04)


$                 (0.18)


$             0.01


$           (0.10)

Settlement of litigation and related charges, net (1)

$                         -


$                      -


$                 -


$            0.01

Change in fair value of warrants (2)

$                    (0.01)


$                  0.03


$            (0.01)


$            0.07

Non-Cash Compensation (3)

$                     0.01


$                  0.01


$             0.04


$            0.05

Severance (4)

$                         -


$                      -


$             0.01


$                -

California studio (5)

$                         -


$                  0.02


$                 -


$            0.05

Net proceeds from sale of NJ state operating loss carryforwards (6)

$                         -


$                      -


$            (0.04)


$           (0.04)

Non-GAAP net (loss) income per diluted share

$                    (0.04)


$                 (0.12)


$             0.01


$            0.04









Shares used in GAAP and Non-GAAP  per diluted share amounts

36,934,987


29,331,882


37,142,649


28,644,914









(1)  Represents charges to settle certain litigations pending in the United States District Court, District of New Jersey:  (i) a securities class action brought on behalf of a purported class of purchasers of the Company's securities; (ii) a private securities action filed by Trinad Capital Master Fund, Ltd.; and (iii) a second action filed by Trinad purportedly on behalf of the Company.  All three actions are now concluded.

(2) Represents the change in the fair value of warrants, classified as a liability. The fair value of the warrants is calculated at each balance sheet date with a corresponding charge or credit to earnings for the amount of the change in fair value.

(3) Represents expenses recorded for stock compensation expense. The Company does not consider stock-based compensation charges when evaluating business performance and management does not consider stock-based compensation expense in evaluating its short and long-term operating plans.

(4) Represents one time severance costs related to a workforce reduction. During January 2010, Company management initiated a plan of restructuring to better align its workforce to its revised operating plans. As part of the plan, the Company reduced its personnel count by 16 employees, representing 17% of its workforce.

(5)  Represents operating expenses related to our internal development studio in California, which were not allocated to capitalizable projects.  After evaluation of the studio's performance, and changes in the availability and cost of development with our third party partners, we determined that closing the studio and taking advantage of these external opportunities represented a better value for the Company.

(6) In December 2009 and November 2008, we received proceeds of approximately $1.6 million and $1.1 million, respectively, from the sale of the rights to approximately $21.2 million and $25.9 million of New Jersey state income tax operating loss carryforwards, under the Technology Business Tax Certificate Program administered by the New Jersey Economic Development Authority. Net proceeds have been recorded as an income tax benefit during each of the three months ended January 31, 2010 and 2009.

SOURCE Majesco Entertainment Company

21%

more press release views with 
Request a Demo

Modal title

Contact PR Newswire

  • Call PR Newswire at 888-776-0942
    from 8 AM - 9 PM ET
  • Chat with an Expert
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Italy
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom
  • Vietnam

My Services

  • All New Releases
  • Platform Login
  • ProfNet
  • Data Privacy

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Platform Login
  • ProfNet
Call PR Newswire at
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookies
Copyright © 2025 Cision US Inc.