(By Balaseshan) Majesco Entertainment Co. (NASDAQ: COOL), a provider of interactive entertainment software, reported a narrower quarterly loss due to higher revenue. The company's fourth quarter per share results missed consensus, sending its shares down 22.64% in aftermarket.
Loss for the fourth quarter narrowed to $2.73 million or $0.07 per share from $3.89 million or $0.10 per share last year. Adjusted loss was $0.07, remained unchanged from last year.
Revenue increased to $26.56 million from $25.14 million. Nintendo Wii contributed to 52% of the company's revenue, while Microsoft Xbox 360 contributed 32% and Nintendo DS contributed 14%.
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Analysts, on average, polled by Thomson Reuters had expected a profit of $0.02 per share on revenue of $23.97 million for the fourth quarter.
"For fiscal 2013, we expect declining sales as our core products on legacy platforms decline, and we will be offering a smaller slate of new handheld and console titles than we introduced in fiscal 2012," said Jesse Sutton, Chief Executive Officer of Majesco.
The company said it has eliminated certain marketing and support positions reflecting the planned reduction of its console game slate in fiscal 2013.
Looking ahead into the first quarter, the company expects to report between a modest non-GAAP EPS loss to breakeven, while Street predicts profit of $0.20 per share. For the fiscal 2013, the company expects to report a loss, while Street predicts profit of $0.26 per share.
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Based on early analysis of sell-through during the 2012 holiday season, the company anticipates holiday sales will be at least 50% lower than last year. Given the company's dependence on holiday sales, COOL anticipates revenue for fiscal 2013 will be significantly below last year, while Street predicts 4.10% growth.
COOL closed Monday's regular session at $1.06. The stock has been trading between $0.86 and $3.10 for the past 52 weeks.