Majesco posts record Q2 financial results
New Jersey-based publisher Majesco Entertainment Company has announced record financial results for the second quarter of 2005, revealing sales of $20 million.
Net revenues are up to $19.9 million from $17 million in the same period last year, and gross profit has increased by $3 million to $8.4 million, or 42.4 per cent of net revenues.
Operating income stands at $821,000, versus $1.1 million for Q2 2004. Majesco attributes this to the implementation of infrastructure to support company growth and the obligations required of a NASDAQ-listed business.
A total of $189,000 net income was generated, compared to a net loss of $49 million in the same period last year - the result of non-cash charges related to private placement, according to Majesco.
Net income applicable to common stockholders was $0.01 per share, compared to a previous net loss of $8.35 per share.
Total net revenues for the six month period ending April 30 stand at $50.6 million, up 21.4 per cent. Gross profit rose to $19.4 million, versus $12.9 million in the second half of 2004.
Six monthly operating income stands at $2.8 million, down by $0.7 million, and net loss for common stockholders over the period was at $0.01 per share. Net loss was $9.59 per share last year.
At the end of the second quarter the company held working capital of $62.1 million, a current ratio of 4.3 versus working capital of $8.9 million or 1.3 at year end October 31, 2004. Stockholders' equity as of April 30 was $76.1 million. Majesco attributes this to the completion of its public stock offering in January 2005 and associated warrant exercises, which garnered net proceeds of $60.5 million.
"Our record second quarter net revenues were driven by the introduction of Psychonauts for the Xbox and PC, double game packs (2 games in 1) value games, and continued strong sales of TV Arcade," said chief financial officer Jan E. Chanson.
"The increased expenses for the quarter were directly related to infrastructure growth to better position the Company for the future.
"We expect this level of expenditures to continue as we prepare to release key products in the coming quarters, implement new support functions and compliance and testing related to Sarbanes-Oxley [requirements]."
CEO Carl Yankowski added: "During the second quarter we announced several new premium game titles aimed at expanding our market share, as well as positioning Majesco to benefit from the upcoming hardware transition.
"We are entering the important second half of our fiscal year with confidence that we are well positioned to achieve our objectives for full year 2005. We remain focused on global growth, both organic and otherwise."
Majesco forecasts net revenues of $175-$185 million for fiscal year 2005, with an operating income of approximately $16-18 million.
Forthcoming Majesco titles include the PS2 version of Psychonauts, JAWS Unleashed for consoles and PC, movie tie-ins Aeon Flux and Taxi Driver and The Darkness for next-generation consoles.