Wedbush: Majesco Sales Expected At $16 Mil, Optimistic On FutureWedbush: Majesco Sales Expected At $16 Mil, Optimistic On Future

In anticipation of Majesco's forthcoming first quarter earnings report, Wedbush Morgan's Michael Pachter has said he expects $16 million in sales for the company and is in good standing to reach a break-even point following former losses. "We expect management to maintain its current guidance," said Pachter, ahead of the company's March 19th results, adding that "Majesco’s [fiscal 2007] line-up of budget titles including 5 DS games and 3 Wii games should provide relatively modest revenue at a modest cost. Should any of these games sell in excess of 100,000 units, we believe that Majesco is well-positioned to generate upside to its guidance." "Though we think Majesco may continue to struggle with its low cash levels," Pachter continued, "we believe that the company is much closer to returning to profitability due to its improvements in sales and cost management. We are more positive on shares now that the company has been able to stabilize revenues in the $12 – 13 million quarterly range, and believe that Majesco can break even at $65 million in annual revenues." As previously reported, Majesco's fourth quarter report showed sales rising to $21.5 million, up from $4.6 million the year prior, and drastically reduced losses thanks to relatively strong sales of the DS' Cooking Mama and the multiplatform Jaws Unleashed. At the time of those results, Pachter said the results were "stirring optimism" in the company returning to better performance, adding that "Majesco has eliminated almost all development of premium frontline titles, and its cost structure is much improved. The company is slowly stringing together a series of modest hits that we believe along with further cost improvement should return the company to profitability."