Majesco Sees Improving Revenues, Profit For Quarter

Officials from publisher Majesco have announced the company’s financial results for the fourth quarter and year ended October 31. For the fourth quarter, the company reported net revenue of $45.3 million, up from $15.5 million at the same time last year. Gross profit also increased to $14.7 million, from $4.3 million, and net income for the fourth quarter also rose, from a loss of $8.2 million at the same time last year to a profit of $16.2 million. Some of the company’s key titles for the year included the currently flagship console property BloodRayne 2, as well as the cheaper-priced Guilty Gear X2 and Ultra Bust-A-Move, although much of the company’s recent emphasis has been on promoting its Game Boy Advance Video cartridges and all-in-one TV Arcade products. Majesco's GBA Video line is probably the company's biggest current asset, being able to display entire animated cartoons on the Game Boy Advance and DS, and the company has signed a number of important content deals with kid-friendly companies such as Disney, Nickelodeon, Fox Kids and Cartoon Network. The company has sold through more than 1.6 million units of Game Boy Advance Video titles, and has sold in approximately an additional 2 million units to satisfy holiday demand. For the full year ended October 31, the company saw revenues increase from $46.6 million in 2003 to $121 million in 2004. Gross profit increased from $15.8 million to $34.7 million and operating income increased from a loss of $8.7 million to $12.1 million. However, the company still made a net loss for the year of $11.2 million, even larger than the $10.8 million loss in 2003. The net loss for 2004 was principally a result of the $18.5 million charge related to the change in value of warrants issued in connection with the private placement. If this had not occurred, then the company would have reported a net income of $6.1 million. Nevertheless, the company has exceeded its earlier revenue guidance, and the rest of the financial results all show significant improvements. Over the next twelve months, the company points to new Game Boy Advance Video cartridges with a capacity of 90 minutes, and its signing of an exclusive project from Chronicles of Riddick developer Starbreeze as auguring additional improvements in the company’s fortunes. Other important releases from Majesco, who are moving aggressively into the full-price console game space, and recently announced a $100 million stock offering, will include the formerly Microsoft-published surreal adventure title Psychonauts and designer Tim Schafer. Another important property is Advent Rising, a sci-fi action collaboration with author Orson Scott Card that already includes a PSP-specific spin-off, Advent Shadow.