HispanicBusiness

EDISON, NJ -- (Marketwire) -- 03/12/13 -- Majesco Entertainment Company (NASDAQ: COOL), an innovative provider of video games for the mass market, today reported financial results for the first quarter of fiscal 2013 ended January 31, 2013.

For the first quarter ended January 31, 2013, Majesco's net revenues were $23.5 million, down 65 percent versus $66.2 million in the same period a year ago. During the first quarter of fiscal 2013, the Company reported an operating loss of $2.0 million, compared to operating income of $7.6 million in the first quarter of fiscal 2012. Included in first quarter fiscal 2013 operating results is a charge of $0.8 million for severance expenses from the strategic realignment implemented in January 2013.

Net loss for the first quarter was $2.1 million compared to net income of $7.7 million in the first quarter of fiscal 2012. On a non-GAAP basis, the net loss for the quarter was $1.1 million compared to non-GAAP net income of $7.3 million in the first quarter last year. Please refer to the Reconciliation of GAAP to Non-GAAP Financial Measures table included later in this release for additional information and details on non-GAAP items.

The Company's basic and diluted net loss per share for the quarter ended January 31, 2013 was $(0.05), compared to basic and diluted net income per share of $0.19 in the same period last year. The non-GAAP diluted net loss per share for the quarter ended January 31, 2013 was $(0.02) compared to net income per share of $0.18 in the same period last year. Please refer to the Reconciliation of GAAP to Non-GAAP Financial Measures table included later in this release for additional information and details on non-GAAP items.

Management Commentary

"As we expected, sales patterns during the holiday period reflected declining demand for products on the Nintendo Wii game platform, including our Zumba Fitness titles," said Jesse Sutton, Chief Executive Officer of Majesco. "As the industry transitions to next generation consoles, we are managing the business conservatively with an eye on cash preservation and relying on our past experience in weathering industry transitions. Already we have taken the necessary steps to lower our fixed cost base and we plan to introduce a smaller slate of high-profile branded console and mobile games during fiscal 2013."

"With cash of approximately $27 million and no debt, we have the financial flexibility to prepare the company for a resumption of growth as the market for next generation consoles develops," concluded Mr. Sutton.

Fiscal 2013 Outlook

Given the decline in the Company's fiscal first quarter revenue, which encompasses the important holiday selling period, and the light product release slate for the next two quarters, management anticipates revenue for fiscal 2013 will be significantly below fiscal 2012. Management continues to expect to report a loss for the full year of fiscal 2013. The Company is currently compiling its release slate for the 2013 holiday selling period and will provide further product details as the year progresses.