Majesco Stock Drops, Closes One Studio
Posted on Tuesday, January 15 @ 09:02:22 PST by Keri_Honea
Yesterday, Majesco announced they would no longer provide quantitative financial data in its earnings reports from this point further. This morning, the Zumba Fitness and Cooking Mama publisher's stock dropped 34 percent, down to $.69.
In the company's official statement, they said, "As a result of the weakness in demand for products on legacy console platforms and uncertainty around consumer adoption of the next-generation of consoles, management is modifying its practice of providing quantitative fiscal year revenue and earnings guidance. Instead, for fiscal 2013, management is presenting a qualitative assessment of its outlook for financial results."
Majesco has also decided to close its social game studio in Foxboro, Massachusetts and institute layoffs at its quality assurance office in New Jersey in an effort to "better align operating costs with sale trends."
Last year, Majesco's net revenue increased 6 percent to $132.3 million with its net income coming in at only $4.4 million, in comparison to the $11.1 million it earned in net income last year.
We've seen this trend happen way too often as of late. Hopefully, this is just a slight dip in Majesco's future and it will be able to turn itself around.
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