Majesco's fourth quarter and fiscal year 2012 report are unfortunately negative, detailing net losses across the board. While revenues for both the fourth quarter and the year were up compared to 2011, but lower than expected sale of NBA Baller Beats on the backdrop of "weak industry-wide sales" worked against Majesco. As a result, after-hours trading has dropped Majesco stock over 30%.
The 30% drop in stock price puts Majesco below the $1 minimum requirement of NASDAQ, which will likely result in a delisting warning for the company tomorrow. Majesco will then have, I believe, 180 to return their stock over $1 for at least 10 days straight or they will be delisted.
Unfortunately, despite the promise of a new generation of consoles, Majesco expects 2013 to be up to 50% worse than 2012:
"Based on early analysis of sell-through during the 2012 holiday season, management anticipates holiday sales will be at least 50% lower than last year. Given the Company’s dependence on holiday sales, management anticipates revenue for fiscal 2013 will be significantly below fiscal 2012."
Today's report also detailed several actions Majesco has made as a result of fiscal earnings. These include the closure of the company's social game development studio in Massachusetts as well as game tester layoffs in New Jersey. Considering the expectation of up to 50% less sales in 2013, this is likely only the tip of the iceberg.
Still, the company has high hopes for the continued success of it's Zumba fitness franchise, as well as new titles related to the popular Young Justice and Phineas and Ferb franchises.