Majesco revealed its fourth quarter and full year earnings for 2013, continuing an ugly story of dwindling revenues and mounting losses.
Net revenues shrank 62 per cent to just over $10 million with a net loss of $4.6 million for the quarter. The year didn't go any better, with losses of $12.6 million on revenues of $47.3 million – a 64 per cent decline.
The Zumba Fitness publisher blamed industry chaos – specifically the console transition – and an increasingly fragmented casual games space.
The turmoil at Majesco over the past year has been so great that the company has offered no financial guidance for 2014. This didn't sit well with investors, and the company's stocks, already threatened with delisting, dropped 11 per cent after hours.
Chief Executive Jesse Sutton was stalwartly optimistic in his remarks on the company's future, suggesting the worst was over and that while Majesco was suffering at the hands of disruption, it had a strategy to return to growth.
Part of that strategy is to drop its licence for what has been the company's signature franchise, Zumba Fitness, despite having marketed four separate titles during 2013. Instead, Majesco plans to market the existing titles in the franchise.
"Given the ongoing industry transition in console gaming, 2013 unfolded as we expected," said Sutton.
"The casual game market has fragmented as new digital platforms have gained popularity, causing disruption and opportunity for Majesco. In response to the changing landscape, we have implemented a multi-pronged strategy that leverages Majesco's traditional core competencies - our sales and marketing expertise, strong industry relationships and broad distribution reach - to diversify our revenue sources and position Majesco for renewed growth."
The plan is to release fewer titles with better connections to brands with good recognition while also relying on its online casino business and indie publishing label Midnight City.