Majesco have announced second Quarter profits of over 60% ($20.5M) for 2009, whereas in 2008 it was only $12.8M.
They achieved this by sticking to their plan of releasing games that are family friendly and casual. in 2009, 33 titles are expected to be released, 18 DS and 14 Wii.
Majesco have raised the expected profit from $75-$80M to $80-$85M.
Press Release
EDISON, N.J. - June 15, 2009 -- 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, 2009.
For the second quarter ended April 30, 2009, Majesco's net revenues increased 60.8 percent to $20.5 million versus $12.8 million in the same period a year ago. During this same period, the Company reported an operating loss of $0.6 million, compared to a $0.3 million loss in the second quarter of 2008. Non-GAAP operating income was $0.5 million versus non-GAAP operating income of $0.2 million in 2008. Net loss for the quarter was $1.7 million versus a net loss of $0.3 million in 2008. On a non-GAAP basis, net income for the quarter was $0.3 million compared to non-GAAP net income of $0.1 million last year.
The Company's basic and diluted net loss per share for the quarter ended April 30, 2009 was $0.06 compared to a net loss per basic and diluted share of $0.01 in the same period last year. Non-GAAP basic and diluted net income per share was $0.01 compared to $0.0 last year.
For the six months ended April 30, 2009, the Company's net revenues increased 69.8 percent to $53.4 million versus the year ago period. During this same period, the Company reported operating income of $3.1 million compared to operating income of $2.1 million in the same 2008 period. Non-GAAP operating income for the six month period was $5.3 million compared to $2.9 million for the comparable 2008 period. Net income through the first six months of fiscal 2009 was $2.5 million versus net income of $2.4 million in the comparable 2008 period. Non-GAAP net income was $4.5 million for the first six months of fiscal 2009 compared to $2.6 million in the same 2008 period.
The Company's basic and diluted earnings per share for the six months ended April 30, 2009 and the six months ended April 30, 2008 was $0.09. The Company's non-GAAP basic and diluted earnings per share for the six months ended April 30, 2009 was $0.16 compared to $0.09 in the comparable 2008 period.
Jesse Sutton, Chief Executive Officer of Majesco, said, "We delivered another impressive quarter as we continued to successfully execute on our business plan and capitalize on the strength of the family friendly, casual game market. Our revenue growth was driven by the continued strength of Jillian Michaels' Fitness Ultimatum 2009 and our Cooking Mamafranchise. During the quarter we launched Gardening Mama, our first brand extension of the Mama franchise, which delivered a solid performance and demonstrated the power of the Mama brand and its ability to extend beyond cooking. As expected, profitability in the quarter was dampened by our strategic marketing campaigns as we made investments to support the growth of our franchises and most promising titles. We believe the benefits of these investments will continue beyond the first half of 2009 and help drive future growth. Despite these investments, for the first six months of fiscal 2009 we delivered improved operating and net income on both a GAAP and non-GAAP basis. For the first six months, our non-GAAP operating income grew $2.4 million or 83 percent to $5.3 million, while our non-GAAP net income reached $4.5 million, an increase of $1.9 million or 75 percent.
"As a result of our success to date this year, and the strength of our release schedule for the rest of the fiscal year we have increased our revenue guidance for fiscal 2009 to $80 to $85 million. We remain focused on prudently managing our costs and are committed to delivering profitable growth. We have a proven strategy, are executing operationally and believe we have the right team in place to continue creating value for our shareholders over the long-term."
Financial Highlights
-- Second quarter 2009 net revenues for the U.S. were $20.3 million, an increase of $8.9 million or 78 percent compared to the same quarter last year. Second quarter 2009 international sales were $0.3 million, a decline of $1.1 million or 81 percent compared to the same period of 2008.
-- For the six months year-to-date, net revenues for the U.S. were $52.0 million, an increase of $22.2 million or 74 percent compared to the same period last year. International sales for the same period declined $0.3 million or 17 percent compared to the same period last year.
-- Net Sales for the Wii increased $7.5 million, or 235 percent, to $10.7 million for the second quarter of fiscal 2009. DS sales for the same period increased 3 percent, from $9.0 million to $9.3 million.
-- For the six months year-to-date, Wii sales increased $24.8 million, or 359 percent, to $31.7 million. DS sales for the same period declined 12 percent from $23.2 million to $20.5 million.
-- The second quarter of 2009 also includes $1.0 million in advertising expense (included in selling and marketing) in support of the Company's strategic marketing initiatives and a loss on impairment of development costs of $0.3 million (included in general and administrative) due to cancellation of titles in development.
-- The six months ended April 30, 2009 also includes $2.3 million in advertising expense (included in selling and marketing) in support of the Company's strategic marketing initiatives and a loss on impairment of development costs of $0.3 million (included in general and administrative) due to cancellation of titles in development.
Generally Accepted Accounting Principles (GAAP) and Non-GAAP Metrics
To facilitate a comparison between the three and six months ended April 30, 2009 and 2008, the Company has presented both GAAP and Non-GAAP financial results. GAAP financial measures, including operating income, net income, and basic and diluted earnings per share, have been adjusted to report certain Non-GAAP financial measures.
These Non-GAAP financial measures exclude the following items from the Company's unaudited condensed consolidated statements of operations:
Expenses related to non-cash compensation
Net proceeds from sale of income tax net operating loss carryforwards
Settlement charges related to the settlement of class action litigation
Change in fair value of warrants
Expenses for the California studio which will be closed in the third quarter fiscal 2009
These Non-GAAP measures are provided to enhance investors' overall understanding of the Company's current financial performance and the Company's prospects for the future. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.
For more information on these Non-GAAP financial measures, please see the tables in this release captioned "Reconciliation of GAAP and Non-GAAP Financial Measures" which includes a reconciliation of the Non-GAAP to the GAAP results.
Announced Product Line-up
Third Quarter 2009 ending July 31, 2009:
All of the following titles have been or are expected to be released in North America during the Company's third quarter:
-- Go Play Lumberjacks for Wii is the first game in Majesco's recently announced Go Playline of motion-based, family friendly Wii titles that lets players use the Wii Remote to chop, climb, saw and logroll to victory in 5 entertaining events that include support for the Wii Balance Board accessory.
-- Go Play Circus Star for Wii is the second game in Majesco's recently announced Go Playline that includes a full collection of all-time favorite circus attractions. Featuring support for the Wii Balance Board accessory, the game lets players wow the crowd with death-defying stunts, animal tricks and sleight of hand in 15 different events.
-- Night at the Museum: Battle of the Smithsonian for Wii/DS/360/PC follows the storyline of Twentieth Century Fox's highly anticipated theatrical release of the same name which debuted in theaters May 22nd. Featuring the voice and likeness of the film's star, Ben Stiller, the game brings the movie experience directly into the home with all of the excitement and humor from the feature film.
-- Drama Queens for DS tasks players with juggling their love life, career and friendships as they compete in a popularity contest set within a virtual 3D board game.
-- Math Blaster in the Prime Adventure for DS is inspired by the original hit PC game from Knowledge Adventure that makes learning fun by combining a variety of adventure-based learning games with challenging mathematic puzzles and the unique capabilities of Nintendo DS.
-- Rollin' Rascals for DS is an addictive puzzler that challenges players to roll adorable pets around obstacles and into identical pairs to clear them from the game board.
-- Powerbike for DS is an intense motorcycle racer that features death-defying stunts, intense police chases and competitive multiplayer modes.
-- Ultimate Game Room for DS is a compilation of 3 classic recreational sports-Pool, Darts and Bowling-that lets players compete against friends on the go.
-- Puffins Island Adventure for DS lets players experience life as part of a Puffin flock as they fly, dive, swim, explore and start a family in this fun and educational experience focused on one of nature's more unusual and endearing sea birds.
-- Marker Man Adventures for DS is a unique game based on drawing and physics challenges in which players maneuver the charming stick figure, Marker Man, through a myriad of scrolling world puzzles in his attempt to find his best friend, Doodles.
-- Escape the Museum for Wii traps players in the National Museum of History after a devastating earthquake. Players search the museum for survivors and priceless archeological artifacts by completing 12 different hunt and find areas and 25 action-packed adventure scenes.
-- Hot and Cold: A 3D Hidden Object Adventure for DSiWare is inspired by the classic children's game in which players use temperature cues to indicate proximity to an item. Players will search through 50 multi-room levels using the Hot and Cold Meter as a guide for discovering hundreds of items with real world physics.
Fourth Quarter 2009 Ending October 31, 2009:
To date, the Company has announced the following titles that are expected to be released during its fiscal fourth quarter 2009:
-- Go Play City Sports for Wii is the third game in Majesco's new Go Play line. This compilation of urban sports lets players compete against the best neighborhood athletes in six classic games, including stickball, kickball, handball, rooftop hockey, shootout soccer and jump rope. The game also features four player gameplay and support for the Wii Balance Board accessory.
-- My Hero: Firefighter for DS is part of Majesco's new aspirational line of My Hero adventure games that lets players experience firsthand the heroic acts of the role models they look up to. Players use the stylus as a fire hose, ladder and ax as they complete 13 varied missions relating to fire emergencies and courageous rescues.
-- My Hero: Astronaut for DS is the first astronaut game available and also part of Majesco's new aspirational line of My Hero adventure games. On an expedition to Mars, players will pilot a Space Rover, Space Shuttle, and Lunar Lander as they blast off through over 40 different missions that include landing on a space station, repairing satellites, destroying meteors and more.
-- Our House: Party! for Wii turns the Wii Remote into the ultimate home renovation tool that lets up to four players compete party style to build their own personalized trophy home that they can then share with friends via WiiConnect24.
-- Our House for DS is a companion game to the Wii version. The title lets players work as contractors and then use their work-for-hire earnings to design, build and decorate their own personalized home.
-- A Boy and His Blob for Wii is IGN's Best of E3 runner-up in the Wii Platformer category. The game is a rebirth of the NES classic that expands upon the original platform adventure and features groundbreaking hand drawn and painted animation technology. By feeding the blob jelly beans, players can activate his special abilities to transform him into tools that help the pair solve puzzles, defeat monsters and escape danger.
First Quarter Fiscal 2010 Ending January 31, 2010
To date, the Company has announced the following titles that are expected to be released during its fiscal first quarter 2010, which includes the holiday sales period:
-- Jillian Michaels Fitness Ultimatum 2010 for Wii and Jillian Michaels Pocket Trainer 2010 for DS feature the celebrity fitness trainer, life coach, and star of the popular television series The Biggest Loser as she leads players through high-intensity, one-on-one workouts while providing direct feedback and motivation to help players reach their personal fitness goals.
-- My Hero: Doctor for DS is part of Majesco's new aspirational line of My Hero adventure games. As a doctor's apprentice, players will manage 10 major medical emergencies by utilizing the microphone and stylus as an all-in-one medical tool.
-- Dawn of Heroes for DS is a tactical role playing game that combines classic RPG concepts-including character development, epic combat, quests and puzzles-with a humorous style.
-- Flip's Twisted World for Wii, a Gamespot E3 '09 Editor's Choice award finalist, is a unique puzzle platformer that stars Flip, a magician's apprentice who mistakenly gets sucked into a cubed world where up and down are only a matter of perspective. Players will help Flip escape his cube prison by rotating the environment 90 degrees in any direction with a simple twist of the Wii Remote.
Fiscal 2009 Outlook
The Company increased its outlook for fiscal 2009 full year net revenue to $80 to $85 million from its previous outlook provided on March 11, 2009 of full year net revenue of $75 to $80 million. The Company expects non-GAAP earnings per share to be between $0.10 and $0.14 for the fiscal 2009 full year. The guidance reflects both the success of the first half of fiscal 2009, and the costs of the investments it is making to support and extend the Cooking Mamafranchise and to build out the new Go Play brand. The Company's guidance assumes the release of approximately 33 titles in 2009 including 18 DS and 14 Wii. The Company's results are also impacted by seasonality from the December holiday period and variability based on release schedules.
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