Majesco Entertainment's woes continued with lackluster results for the third quarter of its 2013 fiscal year, including a 56 percent year-over-year drop in net revenue from $9.1 million to $4 million, the company announced today.
Due to a light product release slate for the three-month period ending July 31, Majesco recorded an operating loss of $3.6 million, the same as in the year-ago quarter. The company's net loss worsened from $3.1 million in Q3 2012 to $3.6 million in Q3 2013.
Majesco's net revenue is also down significantly for the fiscal year so far. During the first three quarters of Majesco's 2012 fiscal year, the company saw net revenue of $105.7 million; that total is $37.2 million this year, a 65 percent decrease. The company also took a hit of $0.8 million for severance expenses related to layoffs enacted this past January.
Majesco continues to expect that it will report a loss for the full fiscal year, since revenue has decreased so significantly from 2012 as the gaming industry moves to a new console generation.
"Our third quarter results reflect the ongoing industry transition to next-generation console gaming," said Don Sutton, CEO of Majesco, in an investor release. "We believe that our holiday release slate, which is focused on high-profile branded games based on popular characters or franchises, is the right approach for the current environment."
Majesco's poor results reflect the next-gen transition
In August, the first month of Majesco's fourth fiscal quarter, the company launched Phineas and Ferb: Quest for Cool Stuff (screenshot above). Majesco's release schedule for the rest of 2013 includes Agent P Doofendash, a mobile game starring Phineas and Ferb side character Perry the Platypus; Young Justice: Legacy on current consoles; and Zumba Fitness: World Party on current- and next-generation consoles.
August also saw two new ventures from Majesco: an investment in online casino games and the founding of an indie publishing label, Midnight City. Check out our interview from PAX Prime with Midnight City co-founder Casey Lynch for more on the new division.