Majesco Q4 and FY2012 report confirms closures

Majesco has released its financial report for both the fourth quarter and full year of fiscal 2012, sharing sales data for its products as well as confirming previously reported job cuts.

The publisher reported net revenue of $26.6m for Q4, which marked a six per cent increase from the same period in 2011. That said, the company also saw an operating loss of $3m.

For 2012 as a whole, Majesco saw a six per cent revenue growth to $132.3m. Operating income was positive at $3.7m, but down significantly from the $11.4m made in 2011.

CEO Jesse Sutton highlighted the Zumba series in particular, noting it has sold in excess of 8m units and is now the second-best selling fitness franchise ever.

We met our revenue expectations in fiscal 2012 against the backdrop of weak industry-wide sales,” Sutton stated. We ended the year with $31.3 million in combined cash and availability from our factor and no long term debt.”

Sutton’s outlook isn’t particularly rosy for the current fiscal year, with the publisher postulating that sales could be down by 50 per cent during the next holiday season as it looks to adapt to the industry’s ever-changing landscape.

For fiscal 2013, we expect declining sales as our core products on legacy platforms decline, and we will be offering a smaller slate of new handheld and console titles than we introduced in fiscal 2012.”

The company also confirmed the closure of its Foxboro, Massachusetts studio and announced job cuts at its New Jersey QA team as well as redundancies in various marketing and support positions.

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