Officials from struggling U.S. Psychonauts
publisher Majesco have reported the results of the company's fourth financial quarter, ended October 31st. During this period the company reported a loss of $34.2 million, or $1.54 per share, compared to a profit of $16.2 million a year ago.
The company's revenue during the three months was down to just $4.6 million, compared to $45.3 million at the same time in 2004. These results include $20.2 million in provisions for "impairment of capitalized software costs and prepaid license fees" and $5 million in provisions for slow moving inventory and additional price protection.
Company officials blamed a weak gaming market during the fourth quarter and subsequent holiday season, along with rising costs, for the disappointing results, though Majesco's issues started earlier in 2005
, when an intended move into high-budget console games such as Advent Rising
resulted in much lower revenues than intended.
As a result, the company will be refocusing on publishing lower priced and handheld games and has already sold the rights
to full price titles such as movie and comic book licenses Ghost Rider
and The Darkness
. Additionally, according to consumer website Gamecloud, the company have also canceled retro movie license Taxi Driver
and Cliver Barker-inspired horror title Demonik
For the entire year, Majesco lost a gigantic $70.9 million, compared to a loss of $11.2 million in 2004. Sales were $59.7 million, compared to $121 million a year before. Analysts had expected sales of $6.9 million in the fourth quarter and $62 million for the whole year.
"This has been a difficult year for Majesco," said president Jesse Sutton in a statement. "We entered the premium console market with high expectation for success, but as a result of a variety of factors we were not able to meet our expectations."
The company has so far issued no guidance for 2006, saying only that they are expected to be similar to 2005, albeit with a significant reduction in operating loss. Shares in the company fell 24.8 percent in after hours trading as a result of the news.