Majesco's Financial Problems

Majesco, one of the major handheld publishers, is in trouble. Financial trouble...

Videogame maker Majesco cut its fiscal 2005 financial targets and said Chief Executive and Chairman Carl Yankowski had resigned. The board has elected current director Jim Halpin as chairman and begun a search for a new CEO, Majesco said.

Majesco, which sells video games and related equipment such as headphones for hand-held game players, previously forecast net revenue of $175 million to $185 million and operating income of $16 million to $18 million, with at least 50 percent of that net revenues coming in its fourth fiscal quarter.

The company now anticipates fiscal 2005 net revenue between $120 million and $125 million and an operating loss of $16 million to $19 million.

The new guidance includes a variety of charges and write downs, including increased allowances for price protection that will be recorded as a reduction of revenue. The charges total around $12 million and will be included in the current fiscal third quarter ending July 31.

Majesco now expects fiscal third quarter net revenue of $5 million to $10 million and an operating loss of $19 million to $22 million.

Of course, we hope that Majesco will find a solution to their problems, because it would be a waste to see games like Age of Empires for the Nintendo DS or the GBA Video packs go to waste...

Share on Twitter or Facebook

Comments

• 

  Too many numbers... Oh, there's the games! Yeah, that's bad.

  Nintendude, 30-11--0001 at 00:00
• 

  well, lets hope that Nanostray will do well...

  twilight, 30-11--0001 at 00:00
• 

  Wait a minute, isn't Majesco producing Teen Titans game? I hope this won't effect that.

  LeSomeGuy, 30-11--0001 at 00:00
• 

  nanostray and age of empires are bound to boost their sales

  tiamat1990, 30-11--0001 at 00:00