Majesco announces executive management shake-up

Troubled publisher Majesco Entertainment has announced a number of internal changes and financial restructuring moves as the company strives to regain its market stability and recoup significant revenue losses.

Following the recent release of its full fiscal year 2005 financial reports, Majesco announced its intention to exit the premium games market and focus on handheld and budget software titles.

However, further changes have now been implemented following the resignation of former company chairman, board member and audit and compensation committee member, James Halpin. Additionally, Marc Weisman has resigned as a member of the board of directors, as chairman of the nominating and governance Committee, a member of the audit committee and Compensation Committee.

Company founder Morris Sutton has been appointed as chairman of the board of directors and interim CEO with immediate effect and the company is actively seeking two new independent board members, to replace Jesse Sutton and Joseph Sutton, both of whom have also resigned from the board.

"My focus as Interim CEO will be to guide the Company back to profitability by building sales and reducing costs," Morris Sutton stated. "I look forward to leading Majesco once again as we shift our strategy back to producing the value and handheld products that helped to build our business since I founded this Company 20 years ago."

Further disclosures from the company include notification that the maximum availability under its existing factoring and finance facilities has been increased from USD 16 million to USD 20.0 million, which Sutton believes will give the publisher a greater financial flexibility moving forward.

However, as a result of poor full fiscal year results, the company has received notification from The NASDAQ Stock Market that it no longer complies with the marketplace rule requiring the company to have a minimum of USD 10 million in stockholders' equity.

NASDAQ has notified Majesco that it needs to present a plan to achieve and sustain compliance with the rule on or before February 21st, and the company is currently evaluating its alternatives.