Majesco (COOL) Shares Tumble Amid Q4 Miss, Weak FY12 Guidance
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Majesco Entertainment Company (NASDAQ: COOL) Tuesday afternoon reported financial results for the fourth quarter and full year ended October 31, 2011. Shares are trading down over 15 percent following the release.
Net revenue rose 8 percent year over year to $25.1 million, but was below the Street’s consensus of $26.97 million.
Gross profit increased 12 percent to $4.239 million.
The Company reported an operating loss of $3.0 million, compared to an operating loss of $1.3 million in the fourth quarter of 2010. Net loss for the quarter was $3.9 million versus a net loss of $1.5 million in 2010. On a non-GAAP basis, net loss for the quarter was $2.7 million compared to a non-GAAP net loss of $1.5 million last year.
Basis and diluted net loss per share was $0.10, compared to a basic and diluted net loss per share of $0.04 in the same period last year. Non-GAAP diluted net loss per share was $0.07 compared to a net loss per share of $0.04 last year. The Street’s consensus was calling for earnings of $0.04 per share.
Cash and cash equivalents for the quarter rose 71 percent year over year to $14.69 million.
The Company expects fiscal 2012 full year net revenue in a range of $125 to $140 million, versus the consensus of $141.45 million, and non-GAAP earnings per share of $0.25 to $0.35, versus the consensus of $0.46. This outlook is based on an estimated fully diluted share count of approximately 41.5 million, and assumes non-cash compensation of approximately $0.05 to $0.07 per share for fiscal 2012.
Jesse Sutton, Chief Executive Officer of Majesco, said, "In 2011, we experienced the successful launch of a brand new franchise for Majesco; Zumba Fitness has quickly become the fastest selling title in the company's history and the world's #1 fitness title of 2011. We grew revenues over 65% in 2011, expanded gross margins by over 1200 basis points, and delivered significant profits to the bottom line. Zumba Fitness has taken the fitness category by storm, selling over 4 million units worldwide in its first 12 months, and topping the charts as the #1 fitness title of the year in the US and UK. Finally, we are also excited about our digital initiatives -- we learned a great deal in 2011, made a strategic acquisition of Quick Hit, and plan to apply this knowledge to a robust 2012 slate of social and mobile titles."
Net revenue rose 8 percent year over year to $25.1 million, but was below the Street’s consensus of $26.97 million.
Gross profit increased 12 percent to $4.239 million.
The Company reported an operating loss of $3.0 million, compared to an operating loss of $1.3 million in the fourth quarter of 2010. Net loss for the quarter was $3.9 million versus a net loss of $1.5 million in 2010. On a non-GAAP basis, net loss for the quarter was $2.7 million compared to a non-GAAP net loss of $1.5 million last year.
Basis and diluted net loss per share was $0.10, compared to a basic and diluted net loss per share of $0.04 in the same period last year. Non-GAAP diluted net loss per share was $0.07 compared to a net loss per share of $0.04 last year. The Street’s consensus was calling for earnings of $0.04 per share.
Cash and cash equivalents for the quarter rose 71 percent year over year to $14.69 million.
The Company expects fiscal 2012 full year net revenue in a range of $125 to $140 million, versus the consensus of $141.45 million, and non-GAAP earnings per share of $0.25 to $0.35, versus the consensus of $0.46. This outlook is based on an estimated fully diluted share count of approximately 41.5 million, and assumes non-cash compensation of approximately $0.05 to $0.07 per share for fiscal 2012.
Jesse Sutton, Chief Executive Officer of Majesco, said, "In 2011, we experienced the successful launch of a brand new franchise for Majesco; Zumba Fitness has quickly become the fastest selling title in the company's history and the world's #1 fitness title of 2011. We grew revenues over 65% in 2011, expanded gross margins by over 1200 basis points, and delivered significant profits to the bottom line. Zumba Fitness has taken the fitness category by storm, selling over 4 million units worldwide in its first 12 months, and topping the charts as the #1 fitness title of the year in the US and UK. Finally, we are also excited about our digital initiatives -- we learned a great deal in 2011, made a strategic acquisition of Quick Hit, and plan to apply this knowledge to a robust 2012 slate of social and mobile titles."
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