Majesco reveals marginal increase in Q2 profits
Majesco Entertainment has posted its Q2 financial results, revealing a small increase in profits as the troubled publisher continues restructuring plans following its exit from the premium games market.
Majesco Entertainment has posted its Q2 financial results, revealing a small increase in profits as the troubled publisher continues restructuring plans following its exit from the premium games market.
For the second quarter ended April 30th, Majesco reported net revenues of USD 11.6 million, down from USD 19.9 million for the same period in 2005. Gross profit was posted at USD 3.9 million, compared to USD 8.4 million last year and the company attributes the lower figures to a determined shift in its product mix, which has changed from premium console titles to value and handheld games.
Net income for the quarter was USD 839,000, marking a positive increase on the USD 189,000 for the same period in 2005 and assisting the publisher in its recovery efforts as the change in publishing strategy and overall company restructuring continues.
Operating income also increased, reaching USD 1.4 million compared to USD 821,000 a year ago. However, the figure includes gains from the sale of rights and obligations to Teen Titans on PS2, Xbox and GameCube, as well as well as a reduction in certain royalties and payables as the publisher continues to address its financial instability.
Morris Sutton, Majesco's chairman and interim CEO, commented: "During the second quarter we made significant progress in establishing a solid foothold in the portable games market. Going into the second half of fiscal 2006, we will continue to be prudent with research and development efforts, and work on exploring other incremental revenue opportunities related to emerging technologies and peripherals."