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Majesco Entertainment Reports Net Loss of $.04 (NASDAQ: COOL)

|Includes: PolarityTE, Inc. (PTE)
Yesterday at the market close Majesco Entertainment Company (NASDAQ: COOL) reported second quarter 2010 financial results. The company’s net loss for the quarter was $1.6 million compared to a net loss of $1.7 million in 2009. Net loss per share was $.04 compared to a net loss per share of $.06 in the same period a year ago. Operating expenses declined to $4.7 million or 36% from a year ago, and Majesco finished the quarter with total cash and cash equivalents of $11.5 million. 

The performance of the company was in line with the full year guidance of $80 million in net revenue.
In reading the associated press release, Majesco announced a very detailed projection for game releases in the following two quarters. For the third quarter, Tetris party Deluxe, Attack of the Movies 3-D, Serious Sam HD: The Second Encounter, Dance Sensation!, Summer Camp Showdown, Pirates PlundARR and Super Speed Machines are all in the works to be completed and released. 
 
 
In the following quarter, Zumba Fitness, Crafting mama, Greg Hastings Paintball 2, Ghostwire: Link to the Paranormal, Swords, Dawn of Heroes, Babysitting Mama and My Baby 3 and Friends are all set to be released with Babysitting Mama and My Baby 3 and friends in time for the holidays. 
 
Seasonality has hindered all gaming companies. The time between Christmas and summer is often slow for consumer products. Majesco games tends to create software geared towards children as well, furthering the company’s seasonality. During the school year, allotted game play is usually reduced by parents and the purchase of games are often a reward or gift. As summer rolls around and E3 blasts into full swing today, Majesco games should be running on all cylinders. The company’s product line is innovative, revamping some old classics as well as fully utilizing the stylus for the DS and could catch on in the second half of this year.
If there will be any turn around for the company it will evident in the success and outcome of the E3 expo taking place in the next three days at the Los Angeles Convention Center. Majesco entertainment is currently trading at $.74 down$ .07 or 8%.   The company has been getting crushed since the press release and will most likely be very volatile throughout the day today.  

 
COOL is featured in our Nano Cap Index

 


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