Majesco Revenue Increases on Sales of Wii, DS Games

Majesco announced financial results for its second quarter and six months ended April 30, 2007. Jesse Sutton, Majesco’s interim chief executive officer, said, “During the quarter, we launched our first two games for the Nintendo Wii as well as three DS titles, which drove net revenue growth of 30 percent compared to last year. Also, we signed a new agreement with Eidos Interactive to distribute a number of Majesco titles to the PAL territories. This partnership, which will commence in the third quarter, aligns our international distribution network with our mass market strategy.”

Sutton continued saying, “We have met our goals for the quarter and delivered solid financial results by executing our strategy to further penetrate the mass market, strengthen our international distribution, leverage licensing and development relationships, improve gross margins, and continue to reduce costs. In addition, we have made progress related to our class action law suit and reached a tentative understanding on settlement terms. We look forward to putting this situation behind us and we believe that the settlement, if consummated, will have no effect on the company’s ongoing operations.”

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Comparing the three months ended April 30, 2007 to April 30, 2006, net revenue was up $14.6 million, compared to $11.2 million. Net revenue was comprised 84 percent from new releases and 16 percent from catalog. Sixty-two percent of net revenue was from sales of games for console systems including 55 percent contributed from the Wii. Thirty-seven percent of net sales was from games for handheld systems including 33 percent contributed from games developed for the DS. Combined, Nintendo’s two systems made up 88 percent of sales for Majesco.

Looking ahead to the 4th quarter of 2007, the company will be releasing Operation: Vietnam (DS), The Wild West (DS), Turn It Around (DS), Kengo: Legend of the 9 (Xbox 360), Nancy Drew and the Deadly Secret of Olde World Park (DS) and one unannounced title for both the DS and Wii.

Sutton added, “In line with our strategy to remain opportunistic, in May we announced the addition of an Xbox 360 title, Kengo: Legend of the 9, to our line-up. This exemplifies our ability to leverage our industry relationships to quickly bring to market titles that we believe will appeal to a wide consumer base. Looking forward, we remain optimistic about the success of both the Nintendo DS and Wii systems and will continue to focus primarily on these systems, while opportunistically pursuing compelling titles that become available in the marketplace.”

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