EDISON, N.J., June 14, 2010 — Majesco Entertainment Company (Nasdaq: COOL), an innovative provider of video games for the mass market, today reported financial results for the second quarter and six months ended April 30, 2010.
For the second quarter ended April 30, 2010, Majesco’s net revenues decreased 47% percent to $10.9 million versus $20.5 million in the same period a year ago. During this same period, the Company reported an operating loss of $1.6 million, compared to an operating loss of $0.6 million in the second quarter of 2009. For the quarter, Non-GAAP operating loss was $1.2 million versus Non-GAAP operating income of $0.5 million in 2009. Net loss for the quarter was $1.6 million versus a net loss of $1.7 million in 2009. On a Non-GAAP basis, net loss for the quarter was $1.3 million compared to Non-GAAP net income of $0.3 million last year.
The Company’s basic and diluted net loss per share for the quarter ended April 30, 2010 was $0.04 compared to net loss per share of $0.06 in the same period last year. For the same quarter, Non-GAAP basic and diluted net loss per share was $0.03 compared to net income per share of $0.01 last year.
For the six months ended April 30, 2010, the Company’s net revenues decreased 25 percent to $40.1 million versus the year ago period. During the same period, the Company reported operating income of $0.9 million compared to operating income of $3.1 million in the same 2009 period. Non-GAAP operating income for the six month period was $2.3 million compared to $5.3 million for the comparable 2009 period. In the six months ended April 30, 2010 net income was $2.2 million compared to net income of $2.5 million for six months ended April 30, 2009. For the same period, Non-GAAP net income was $1.7 million this year compared to $4.5 million in 2009.
The Company’s basic and diluted earnings per share for the six months ended April 30, 2010 was $0.06 while basic and diluted earnings per share were $0.09 for the corresponding period in 2009. The Company’s Non-GAAP basic and diluted earnings per share for the six months ended April 30, 2010 was $0.04 compared to $0.16 in the corresponding 2009 period.
Jesse Sutton, Chief Executive Officer of Majesco, said, “Our Company’s second quarter results were in line with our internal expectations. The revenue decline for the quarter was consistent with our full year guidance of $80 million. We were up against some difficult comparisons with last year when we launched Gardening Mama, and our first Jillian Michaels’ title was selling very well. Our costs are under control and we continue to adjust our business model to meet industry challenges. We remain excited about our upcoming titles scheduled to release during the balance of the year. Our management team is striving for improved profitability and is totally committed to building long-term value for our shareholders.”
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