Jesse-Sutton
Latest
Investors plug $6 million into Majesco
Majesco Entertainment completed an investment round that resulted in $6 million in funding, the Cooking Mama publisher announced today. $1 million of the funds were issued to the company with the rest stashed in escrow until certain, as-yet-unknown conditions are met by Majesco. The company also appointed two people to its boards of directors to replace two that stepped down, one of whom is Jesse Sutton, who will remain Majesco's CEO after resigning from the company's board. SEC filings in November admitted that Majesco "suffered losses that raise substantial doubt about our ability to continue as a going concern." It reported a 27.2 percent drop year-over-year in net revenue in September, as well as net losses of $2.7 million. As a result, Majesco laid off several staff in October to reduce fixed costs. The company also noted last month that it is "currently not developing any significant new games for release in fiscal 2015," which ends on October 31, 2015. [Image: Majesco]
Majesco reports drop in Q1 profits
This week, Majesco reported its earnings for its fiscal first quarter (which ended January 31). As you may have surmised from the recent news of its potential Nasdaq delisting, things aren't precisely where Majesco would want them to be, financially. Its net profit for the quarter was $3.8 million, showing a year-over-year decline compared to Q1 2009's $4.2 million profit. However, the slightly smaller Q1 still seems big enough to make Majesco happy. "Majesco had a very solid first quarter driven by strong holiday sales of our Cooking Mama franchise," CEO Jesse Sutton said, "which once again delivered impressive results, and Alvin & The Chipmunks: The Squeakquel." Yes, that's right, some of you bought something with the word "Squeakquel" on it. "Our results were in-line with our internal expectations and we remain on track to deliver improved profitability for 2010," he added. "We have made significant progress in fine tuning our strategy to meet the challenges of the current operating environment." The latest announcement from Majesco, of course, is another extension of the Cooking Mama franchise, Crafting Mama.
Majesco forms Majesco Studios, a new internal studio with a Nintendo focus
Like the tortoise, Majesco has been slowly and steadily trying to make progress. The latest move on the part of the publisher is to form a new internal development house, Majesco Studios. Majesco CEO Jesse Sutton detailed the news in an interview with Gamasutra, commenting that this is "an attractive, low risk opportunity" for the company and the new studio will focus exclusively on creating casual titles for the DS and Wii. Sutton has hopes for Majesco Studios, stating that the goal is for the new studio to produce three titles within its first year and to turn profitable by 2009. [Via Joystiq]
