Majesco may not go belly up after all!
There's still a chance Majesco might run out of money in the near future, but the New Jersey-based company's latest financial results are providing investors with some hope that a turnaround might be in the works, according to a research report by Wedbush Morgan Securities analysts Michael Pachter and Edward Woo.
The company made more money than anybody expected in the latest quarter. They also managed to keep their costs low and have decided to focus on lower-budget console and handheld titles. How does a game developer on the rocks keep costs low? By firing the QA staff, of course! The company notes in its latest financial statement that lower R&D costs are "principally attributable to lower quality assurance employee costs as a result of the fewer number of premium game projects currently in the development cycle."
Pachter and Woo (who maintain a "sell" rating on the company's stock) write, "Although we are still unable to paint a rosy picture about Majesco’s prospects, we think that the shift in strategy is the right decision, and note that the company has begun to show signs of improvement."
[Post screenshot comes from recent Majesco title Aeon Flux for the Xbox and PS2]
