Majesco's stock down, as it walks away from Zumba
Today, Majesco announced its results for both its fourth fiscal quarter of 2013, ending October 31, 2013, and its full year.
The numbers aren't pretty: For the quarter, net revenues were down 62 percent year-on-year, to $10.1 million, with a net loss of $4.6 million. For the year, Majesco's net revenues declined 64 percent to $47.3 million, leading to an operating loss of $12.6 million.
The company blamed the general tumult of the game industry, specifically the next-gen console transition and fragmentation of the casual games market. In his comments, however, CEO Jesse Sutton suggested the company will be well-placed to take advantage of new opportunities even while cutting back on some older ones.
Despite releasing four titles in the popular Zumba exercise franchise in 2013, Majesco has announced it has no plans to enter into an agreement with Zumba Fitness for new sequels.
The company is pinning its hopes, instead, on moves into online casino games and digital lotteries via its joint venture GMS Entertainment -- into which it will invest between $3.5 to $4.5 million
. It also hopes that its new division Midnight City -- which focuses on distributing indie games
, including Slender: The Arrival
-- will be lucrative.
However, the results do contain one major red flag: The company has offered no fiscal outlook for 2014, citing "the continuing lack of clarity on market development and consumer preferences" on the next-gen consoles. In after-hours trading, the company's stock -- which is already in danger of being delisted
-- dropped 11 percent.