Majesco Entertainment reported a decline in net revenue for the fourth fiscal quarter ending Oct. 31, 2013, as well as an overall fiscal year revenue decline of 64 percent over the same period from fiscal year 2012.
For the fourth quarter, Majesco's net revenue reached $10.1 million, down from $26.6 million during the same quarter last year. The company also reported an operating loss of $4.5 million, up from last year's reported loss of $3 million for the quarter. Net loss was reported at $4.6 million, compared to last year's $2.7 million.
For the 2013 fiscal year ending on Oct. 31, Majesco reported net revenue of $47.3 million, down 64 percent from $132.3 million during fiscal year 2012. Operating loss for the year was reported at $12.2 million compared $3.7 million from fiscal year 2012, and net loss was $12.6 million, up from $4.6 million during the same period last year. Majesco reported that these figures include a $800,000 charge dedicated to the company realignment and subsequent severance expenses from January 2013. These numbers do not include sales from the holiday period of November and December 2013; those sales will be reflected in Majesco's first quarter report for 2014.
In a press statement, Majesco CEO Jesse Sutton said that 2013 "unfolded as [the company] expected" in the face of the console transition. According to Sutton, the result of these emerging platforms is a "fragmented" casual games market. The company's strategy for the future is to produce fewer games based on popular brands and invest more in its casino games and digital lottery sector as well as indie publishing label Midnight City.
Sutton also noted that it would continue to promote Zumba Fitness titles currently on the market, including Zumba Fitness World Party and Zumba Kids, but would not "enter into a fixed long-term agreement for new sequels." Moving forward, Majesco will also "evaluate" opportunities for motion sensing games for next-gen platforms based on Majesco's visibility and install base.
Majesco did not provide a financial outlook for the 2014 fiscal year "due to the continuing lack of clarity on market development and consumer preferences for the recently released video gaming consoles."