Majesco announced today results for its fourth quarter and fiscal year ended October 31, 2004. All of the figures and information inside.
For the fourth quarter, the Company reported net revenue of $45.3 million, compared to $15.5 million reported for the same period in 2003. Gross profit increased to $14.7 million or 32.5% of net revenues for the fourth quarter, compared to $4.3 million, or 28% of net revenues for the same period in 2003. Operating income increased to $5.6 million for the 2004 quarter versus an operating loss of $7.5 million for the same period one year ago.
For the fourth quarter, the Company generated net income of $16.2 million compared to a net loss of $8.2 million in the fourth quarter last year. The 2004 quarter was favorably impacted as a result of a gain of $11.9 million from the change in value of warrants issued in connection with the private placement in February 2004.
For the year ended October 31, 2004, the Company reported net revenues of $121 million, as compared to $46.6 million in fiscal 2003. Gross profit increased to $34.7 million, or 28.7% of net revenues versus $15.8 million, or 33.9% of net revenues during 2003. For the 2004 period, operating income was $12.1 million versus an operating loss of $8.7 million in the comparable 2003 time period. Net loss for the year was $11.2 million, or $.26 per share based on 58,699,602 weighted average shares outstanding, compared to a net loss of $10.8 million, or $.71 per share based on 15,325,000 weighted average shares outstanding last year.
The net loss for the 2004 fiscal year was principally a result of the $18.5 million charge related to the change in value of warrants issued in connection with the private placement, net of a gain from a renegotiation of a settlement of $1.2 million. The net loss for 2003 was principally attributable to the litigation and impairment charges discussed above. Excluding these items, the company would have reported net income in 2004 of $6.1 million and a net loss of $2.3 million in 2003.
Carl Yankowski, Majesco's Chairman and Chief Executive Officer, commented, "We are pleased with our financial performance for fiscal 2004, proud to report that we exceeded our previously announced net revenue guidance and thrilled that we almost tripled our sales compared to 2003. Considering the competitive environment for console games, we met our goals for our key offerings including BloodRayne 2, Guilty Gear X2 and Ultra Bust-A-Move and we expect our Game Boy Advance Video and TV Arcade products to be very strong holiday sellers. Of particular note is the fact that we are supporting our Game Boy Advance Video titles with national television advertising and promotions with major national retailers throughout the holiday season. Furthermore, the latest additions to our popular line of GBA Value titles, Texas Hold 'em and Monster Trucks, have been well received and are experiencing strong initial sell-through. Exemplifying our ability to move quickly and capitalize on a popular category, our TV Arcade products are experiencing strong initial sell-through and we expect them to do well throughout the holiday season."
The Company completed the year with working capital of $8.9 million versus a working capital deficiency of $10.9 million in the prior year, representing a current ratio of 1.34 for 2004 versus .6 in 2003. Shareholders equity as of October 31, 2004 was $13.8 million compared to total stockholders' deficiency of $15.7 million as of October 31, 2003.
Upcoming Products
Advent Rising, the first title in a planned trilogy of games that has been developed in collaboration with award-winning science fiction author Orson Scott Card: scheduled to launch in the spring of 2005 for the Xbox and PC.
Psychonauts, the anticipated new video game being developed by Double Fine Productions, a studio founded and managed by award-winning game designer Tim Schafer: scheduled to launch in the spring of 2005 for the PlayStation 2, Xbox and PC.
Jaws, based on one of the most enduring action-suspense films of all time, except this time, you play the shark, is being developed by Appaloosa: scheduled to launch in the summer of 2005 for the PlayStation 2, Xbox and PC.
Announced development deal with the award-winning Swedish developer, Starbreeze, to develop content for the next generation of console systems.
Mr. Yankowski continued, "Building on the momentum of a strong 2004, we are positioned for continued success in 2005 with an exciting and diverse line of products and content targeting key demographic cross-sections of the population across most popular digital entertainment platforms. We remain focused on building an effective and efficient organization, dedicated to marketing and continued research and development, in order to continuously expand and improve our product pipeline."
