Pachter: Majesco To See Profits In Fiscal 2008?

Ahead of Majesco's Q4 earnings report expected January 14th, Wedbush Morgan's Michael Pachter has predicted sales of $14 million on Cooking Mama strength, and added that fiscal 2008 could see the publisher "turn the corner of profitability." He adds that while NPD sales reports show the publisher on par with Q4 of the year prior, Wedbush estimates call for a drop in sales of 35 percent. Pachter also predicts that Majesco management will provide at best a cautious outlook for the upcoming fiscal year, despite his rosier outlook. In its rejuvenated focus on casual Wii and DS titles, Pachter thinks "the company's recent performance not only demonstrates its resolve to turn its fortunes around, but also reflects a thoughtful approach to positioning the company for future growth." "We are becoming increasingly positive on the story as the company has rationalized its cost structure," he concluded, "and, with the help of its recent $6 million cash infusion, is preparing for a renewed period of sustainable growth. We continue to believe that the company can be profitable at $65 - 70 million in annual revenues, and that, more important, it is taking the appropriate steps to reach that threshold."