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Auditors issue warning over future of Majesco

The future of Majesco has been called into doubt after independent auditors issued a going concern modification for the US publisher.

The future of Majesco has been called into doubt after independent auditors issued a going concern modification for the US publisher.

Such a report indicates that the auditors have significant doubt about the company's ability to exists as a going concern and to generate enough resources to stay operational.

Accounting firm Goldstein Golub Kessler issued the warning last month, following Majesco's financial results ended October 31 2006, which showed a slowing of losses as the publisher shifted focus to mass market games publishing.

At the time, John Gross, chief financial officer commented, "We have transitioned away from big budget games and dramatically decreased our development costs and operating expenses, thereby significantly reducing our loss of cash."

"The substantial improvements in the health of our balance sheet and the turnaround of our cash flow are encouraging signs," he added.

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Matt Martin

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Matt Martin joined GamesIndustry in 2006 and was made editor of the site in 2008. With over ten years experience in journalism, he has written for multiple trade, consumer, contract and business-to-business publications in the games, retail and technology sectors.