Majesco Reveals Fourth Quarter and FY 2013 Losses, Dumps Zumba

January 15, 2014 - GamePolitics Staff

Publisher Majesco released results for its fourth fiscal quarter of 2013 as well as for the full year, and it is not good news. For the quarter, the Zumba publisher said that net revenues were down a whopping 62 percent to $10.1 million, with a net loss of $4.6 million. For the full fiscal year, Majesco's net revenues declined 64 percent to $47.3 million, leading to an operating loss of $12.6 million.

The company blamed the next-gen console transition and what it described as the fragmentation of the casual games market. Despite the bad numbers, Majesco CEO Jesse Sutton suggested that the company would be well-placed to take advantage of new opportunities, even as the company reveals that it will stop making Zumba games.

The company is instead going to focus on online casino games and digital lotteries via its joint venture GMS Entertainment. It plans to invest between $3.5 to $4.5 million in the venture. It also hopes that its new indie game distribution division Midnight City will be lucrative.

Majesco offered no fiscal outlook for 2014, citing "the continuing lack of clarity on market development and consumer preferences" on the next-gen consoles. In after-hours trading, the company's stock dropped 11 percent. The company currently faces delisting from the NASDAQ; in April of 2013 the exchange warned the company that it needed to get its stock price above one dollar and gave it a deadline of February 24 of this year. The stock is currently trading at right around $0.72. A transcript of the earnings call can be read on Seeking Alpha. It's not pretty.

Source: Gamasutra


 
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