Majesco Entertainment has reported its first-quarter fiscal results for the period ended January 31. The publisher's net sales dipped 11% to $29.2 million and net income declined from $4.2 million to $3.8 million. The company noted that it had a tough comp against the strong performance of their first Jillian Michaels' product, which was released in October 2009. Nevertheless, Majesco said the quarter was about what they expected.
Importantly, the company appears to be keeping costs in check. Total operating expenses declined $2 million (24.2%) compared to last year and selling and marketing expenditures declined $1.1 million (25.9%). At the end of Q1, Majesco said it had over $12.7 million in cash and cash equivalents.
Jesse Sutton, Chief Executive Officer of Majesco, said, "Majesco had a very solid first quarter driven by strong holiday sales of our Cooking Mama franchise, which once again delivered impressive results, and Alvin & The Chipmunks: The Squeakquel. Our results were in-line with our internal expectations and we remain on track to deliver improved profitability for 2010. We have made significant progress in fine tuning our strategy to meet the challenges of the current operating environment. We continue to focus our resources on our best opportunities and our costs remain under control. We are committed to improving our profitability and building long-term value for our shareholders."
For the full fiscal 2010 year, Majesco reiterated that it's expecting net revenues of approximately $80 million and non-GAAP earnings per share of approximately $0.05. This will be based on the release of about 37 SKUs, including 14 DS and 16 Wii, with 9 titles released in the second quarter, 8 titles released in the third quarter and 12 titles released in the fourth quarter. The publisher said that around 62% of sales should come from DS titles, with 31% from Wii titles and 7% from all other platforms.
