Majesco Q1: next-gen transition blamed for drop in revenues

News by Brenna Hillier Contributor

Published on March 13, 2014

Majesco posted year-on-year decreases in revenue and earnings in its first quarter financials, blaming the generational transition.

For tyhe quarter ending January 31, Majesco reported net revenues of $21.9 million, a 7% drop from Q1 FY2013's $23.5 million.

This resulted in a net loss of $4.5 million, a worse result than the same quarter a year ago, when Majesco lost $2.1 million.

"The transition to next generation console gaming continues to impact our financial performance," CEO Jesse Sutton said.

"Holiday sales reflect the expected slow build of the casual gaming installed base on the newest console systems. This ongoing transition, coupled with now entrenched digital platforms which have fragmented the market, have led us to develop opportunities for additional revenue streams."

Majesco pointed out that it has made strategic investments in Midnight City, a new publishing label, and GMS Entertainment, an online gambling portal.

"We will build our 2014 release slate with a judicious use of resources and, even though we anticipate a loss for the full fiscal year, we are confident that we have the resources necessary to fund our operations and invest for future growth," Sutton added.

The publisher's announced release slate is below, but it expect to make further announces over the course of the year.