Majesco (MJCO) Reports Q3 EPS of $0.09

Majesco (NASDAQ: MJCO) reported Q3 EPS of $0.09, versus $0.04 reported last year. Revenue for the quarter came in at $37.2 million, versus $35.8 million reported last year.

“Our third quarter financial results reinforce the continuing momentum of our cloud subscription product focus”, said Adam Elster, Majesco’s CEO. “Our product business now represents more than 40% of our total revenue. The number of cloud customers continues to grow with accelerating project go-lives, as our customers are benefitting from dramatically reduced project implementation timelines. These trends clearly demonstrate Majesco’s ability to rapidly deliver time-to-value to our customers while providing a modern platform for insurers to innovate new products and business models. This is the foundation for our long-term growth as we acquire, adopt and expand customers.”

“We are thrilled to announce the acquisition of InsPro Technologies, further demonstrating our product focus in the Life and Annuity market. InsPro has strong relationships with top tier customers, an experienced team, and a strong technology footprint. In addition, this acquisition expands our partnership with Capgemini as their existing TPA business is based on this platform,” concluded Mr. Elster.

Industry veteran, John Heidelberger, InsPro Technologies’ Customer Delivery Leader said, “We are delighted to join the Majesco family. We looked long and hard for a partner that shared our view of the digital future for group and individual insurance lines. As a former insurance industry CIO and long-term practitioner, I’m confident our policy processing experience coupled with Majesco’s significant investments in digital solutions will allow us to offer our combined customer base a wider selection of solutions while providing even greater opportunities for our committed team.”

Key Revenue Drivers

• Revenue from cloud-based customers was $16.3 million (43.8% of total revenue) for the quarter ended December 31, 2019.
• Total number of cloud customers is now 63.
• Total product revenue was 41.4% of total revenue for the quarter ended December 31, 2019.
• Majesco’s 12-month order backlog as of December 31, 2019 was $101.7 million.
• Two new core platform cloud deals added from existing customers for the quarter ended December 31, 2019.

Third Quarter 2020 Financial Results

• Revenue was $37.2 million, compared to $35.8 million for the same period last fiscal year.
• Gross profit was $17.9 million (48.0% of revenue), compared to $17.5 million for the same period last fiscal year.
• Research and development (R&D) expenses were $4.7 million (12.7% of revenue), compared to $4.9 million for the same period last fiscal year.
• Selling, general and administrative (SG&A) expenses were $10.0 million (27.0% of revenue), compared to $10.3 million for the same period last fiscal year.
• Adjusted EBITDA was $5.0 million (13.4% of revenue), compared to $4.8 million for the same period last fiscal year.
• Net income was $3.9 million, or $0.09 per diluted share.

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

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