$COOL News - Majesco Entertainment Company Reports Third Quarter Financial Results

Majesco Loss Declines. Company Has Stronger Balance Sheet as It Works to Streamline Its Business SOUTH PLAINFIELD, NJ - (http://www.financialnewsmedia.com News Alert) - Majesco Entertainment (NASDAQ: COOL) - Majesco Entertainment Company (NASDAQ: COOL), an innovative provider of downloadable games for the mass market, reported financial results for third quarter ending July 31, 2015.



David Rector, CEO stated \"Majesco continues to streamline its business and this past quarter has exhibited our commitment to work towards profitability. Our operating loss fell dramitcally from $2.3 million in the year ago quarter ended July 31, 2014 to $700,000 in this past third quarter, which ended July 31, 2015. At the same time we ended the quarter with a stronger balance sheet, our cash and cash equivalents balance was $8.6 million. As we continue to reduce expenses we also continue to focus on the downloadable game market and believe the titles we are working on will be well received.\"



Operating loss for the three months ended July 31, 2015 was approximately $0.7 million, compared to an operating loss of $2.3 million in the comparable period in 2014, primarily reflecting expense reductions in development and marketing activities.



Net revenues for the three months ended July 31, 2015 decreased approximately 63% to $1.1 million from $2.9 million in the comparable quarter last year. The decrease was due to lower sales to retailers and distributors generally. In the prior-year, we released Zumba World Party during our first quarter. We did not release significant new titles in the current-year and sales consisted primarily of reorders of older titles and the liquidation of remaining inventory. Since July 31, 2014, we have substantially reduced development and distribution activities for packaged software generally and released fewer titles in the current period. In July 2015, we transferred certain remaining activities, assets and obligations of our retail distribution business to Zift, a company currently owned by our former chief executive officer. These decreases were partially offset by the adjustment of prior-period provisions for price protection allowances based on sell-through of our products. Under the agreements related to the transfer, we will receive a royalty on net revenues from Zift. Revenues from games distributed...