Majesco notes closures, no longer providing quantitative guidance

Majesco admits closures, write offs
Majesco announced today for its fourth quarter ending October 31, 2012, the company experienced a net loss of $2.7 million, compared to a $3.9 million loss the prior year. Revenues for the full year were up six percent to $132.3 million, but concluded with a net income of $4.6 million, down $2 million from last year.

The company also noted it has "implemented several initiatives to reduce fixed operating costs in favor of an outsourced, variable cost model." This included closing a studio in Foxboro, Massachusetts, and a reduction of game testing personnel in its New Jersey office.

Here's the quote from the company's financial report that will likely raise some eyebrows: "As a result of the weakness in demand for products on legacy console platforms and uncertainty around consumer adoption of the next generation of consoles, management is modifying its practice of providing quantitative fiscal year revenue and earnings guidance. Instead, for fiscal 2013, management is presenting a qualitative assessment of its outlook for financial results."

Boiled down, that means Majesco is no longer providing quantitative (a fancy word for numbers) guidance and is providing guidance based on a qualitative (um, warm fuzzy feelings?) assessment.

If this seems vaguely familiar, THQ did almost the same thing in November and its stock plummeted 50 percent the following day. Comparatively, Majesco's stock has dropped 30 percent to $0.74/share in after-hours trading. If the company doesn't pick that up, Nasdaq will be calling in a month with a delisting warning – but Majesco has dealt with that possibility on a couple occasions in the past.
Majesco admits closures, not providing guidance, stock drops

This article was originally published on Joystiq.