Majesco Entertainment posts $5.2M loss in 3Q

Majesco Entertainment falls to a loss of $5.2 million in fiscal 3rd quarter

• On 5:07 pm EDT, Monday September 14, 2009

EDISON, N.J. (AP) -- Video game publisher Majesco Entertainment Co. reported a loss for its fiscal third quarter Monday, hurt by weak sales of some of the company's games.

The results sent shares tumbling 23 cents, or 12 percent, to $1.75 in after-hours trading. Majesco's stock gained 10 cents, or 5.3 percent, to close the regular session at $1.98 Monday.

For the three months that ended July 31, Majesco said it lost $5.2 million, or 18 cents per share. In the same period last year, the company earned $520,000, or 2 cents per share.

Revenue rose 19 percent to $17.2 million from $14.5 million in the year-ago quarter.

The company said its profit was hurt after "Go Play" and "Night at the Museum: Battle of the Smithsonian" sold more slowly than expected. It also blamed its investments in marketing "Go Play," and said "Night at the Museum" was a low-margin addition to its lineup.

Majesco spent $4.2 million on selling and marketing, 75 percent more than the $2.4 million it spent in the comparable 2008 quarter.

The company also said the cost of sales rose much faster than revenue did -- 64 percent to $13.7 million in the quarter.

Majesco raised its sales outlook by $5 million for fiscal 2009, saying it now expects to bring in $85 million to $90 million in revenue.

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