Majesco (MJCO) Reports Q3 Loss of $0.08, Beats on Revenues

Majesco (NYSE: MJCO) reported Q3 EPS of ($0.08), versus $0.00 reported last year. Revenue for the quarter came in at $31.8 million versus the consensus estimate of $30.35 million.

Financial Highlights

For the third quarter ended December 31, 2017

• Revenue for the third quarter ended December 31, 2017 was $31.8 million as compared to $30.0 million in the corresponding quarter of last fiscal year. The 5.9% increase during the quarter was due to the new programs in North America as well as growth in the APAC region. Sequentially revenue increased 4.7% as compared to the previous quarter ended September 30, 2017.
• Gross profit was $14.9 million (46.9% of revenue) for the third quarter ended December 31, 2017, compared to $14.7 million (49.0% of revenue) for the quarter ended December 31, 2016. The decrease in margin was primarily due to the ramp-up of resources to support the revenue growth in the coming quarters. Sequentially gross profit margin was higher by 208 basis points as compared to the quarter ended September 30, 2017, due to revenue growth and improved delivery efficiencies.
• Research and development (R&D) expenses were $4.5 million (14.3% of revenue) during the third quarter ended December 31, 2017, as compared to $4.0 million (13.2% of revenue) during the quarter ended December 31, 2016. The company continues to invest in R&D to increase the depth as well as range of the offering portfolio.
• SG&A expenses were $10.3 million (32.3% of revenue) during the third quarter ended December 31, 2017, as compared to $10.6 million (35.2% of revenue) for the quarter ended December 31, 2016. With the growth in revenue, the decline in SG&A as a percentage of revenue reflects an improvement in our operating leverage.
• Adjusted EBITDA for the third quarter ended December 31, 2017 was $2.2 million (6.8% of revenue) as compared to $1.7 million (5.8% of revenue) for the quarter ended December 31, 2016. Sequentially Adjusted EBITDA, as a percentage of revenue, was higher by 340 basis points as compared to the previous quarter ended September 30, 2017.
• Net loss for the third quarter ended December 31, 2017 was $3.1 million, or $(0.08) per share as compared to net income of $0.2 million, or $0.01 per diluted share, for the quarter ended December 31, 2016. In the current quarter the company made an adjustment of $ 2.67 million or $0.07 per share to write down the company’s deferred tax asset in line with the recent changes made to the Tax Code.

For earnings history and earnings-related data on Majesco (MJCO) click here.

You May Also Be Interested In

• Blackhawk Network (HAWK) Reports Q2 Loss of $0.07; Offers Guidance
• Eledon Pharmaceuticals, Inc. (ELDN) Misses Q2 EPS by 12c
• KULR Technology Group (KULR) Misses Q2 EPS by 39c