Majesco Issues 2006 Fiscal Earnings Report
As each company steps up to the plate to deliver their fiscal earnings reports, we get a chance to see how the game industry is faring on a quarterly basis. Majesco has issued their official report for the fiscal fourth quarter and year ending October 31, 2006, and it appears another publisher has some good news.
Majesco's net revenue for the fourth fiscal quarter topped $21.5 million, which is quite a leap over the $4.6 million for the same quarter in 2005. And as an added bonus, the company was able to reduce their operating losses to $1.9 million for the quarter, and that's a dramatic drop from the $34.4 million loss Majesco suffered in the fourth quarter in 2005.
And as one final bit of happy news, Majesco posted an annual revenue total of $66.7 million, which is a healthy 12% increase from 2005's $59.7 million. And while they were able to drop their operating losses for the fourth quarter, they also managed to lower the operating losses for the entire year. Majesco withstood a mere $3.0 million in such losses in the 2006 fiscal year, which looks a lot better than the monstrous $70.2 million they lost in 2005. Such a huge turnaround was reportedly attributed to "decreased marketing costs, and lower fixed costs precipitated a recent strategic change."
Majesco's CEO, Jesse Sutton, elaborated-
"In 2006, we made significant improvements to our financial results compared to 2005. We have also taken great strides to transition our business away from big budget console games to a more balanced product portfolio comprised mainly of quality, easy-to-play, affordable games for the mass market. With notable successes including Cooking Mama for the Nintendo DS and JAWS(TM) Unleashed for the PlayStation 2 and Xbox, we are optimistic that our refined strategy is working."
As for 2007, Sutton says that Majesco is looking forward to producing several titles for handhelds with an emphasis on the Nintendo DS, and perhaps a few games for next-gen consoles. But whatever they plan, it's clear they now have more room to maneuver, and should be satisfied with such a solid fiscal year.