Majesco Entertainment Company Reports Third Quarter Fiscal 2013 Financial Results

EDISON, NJ -- (Marketwired) -- 09/09/13 -- Majesco Entertainment Company (NASDAQ: COOL), an innovative provider of video games for the mass market, today reported financial results for the third quarter of fiscal 2013 ended July 31, 2013.

For the third quarter ended July 31, 2013, Majesco's net revenues were $4.0 million, down 56 percent versus $9.1 million in the same period a year ago. During the third quarter of fiscal 2013, the Company reported an operating loss of $3.6 million, compared to operating loss of $3.6 million in the third quarter of fiscal 2012. Net loss for the third quarter was $3.6 million compared to net loss of $3.1 million in the third quarter of fiscal 2012. The Company's basic and diluted net loss per share for the quarter ended July 31, 2013 was $(0.09), compared to basic and diluted net loss per share of $(0.08) in the same period last year.

On a non-GAAP basis, the net loss for the third quarter ended July 31, 2013 was $3.3 million compared to non-GAAP net loss of $3.2 million in the third quarter of last year. The non-GAAP diluted net loss per share for the quarter ended July 31, 2013 was $(0.08) compared to diluted net loss per share of $(0.09) in the same period last year. Please refer to the Reconciliation of GAAP to non-GAAP Financial Measures table included later in this release for additional information and details on non-GAAP items.

For the nine months ended July 31, 2013, the Company's net revenues were $37.2 million versus $105.7 million in the year ago period, a decline of 65 percent. The Company reported an operating loss of $7.8 million compared to operating income of $6.7 million in the same period of 2012. For the nine months ended July 31, 2013, net loss was $8.1 million compared to net income of $7.3 million for the nine months ended July 31, 2012. Included in nine month fiscal 2013 operating results is a charge of $0.8 million for severance expenses from the strategic realignment implemented in January 2013. The Company's basic and diluted net loss per share for the nine months ended July 31, 2013 was $(0.20), compared to basic and diluted net income per share of $0.18 for the corresponding period in 2012.

Non-GAAP operating loss for the nine month period was $6.0 million compared to non-GAAP net income of $8.0 million for the comparable period in 2012. For the same period, non-GAAP net loss was $6.3 million in 2013 compared to non-GAAP net income of $7.1 million in 2012. The Company's non-GAAP basic and diluted net loss per share for the nine months ended July 31, 2013 was $(0.15) compared to diluted net income per share of $0.17 in the corresponding period of 2012. Please refer to the Reconciliation of GAAP to non-GAAP Financial Measures table included later in this release for additional information and details on non-GAAP items.