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Majesco announces Q2 results

Publisher Majesco recently announced financial results for its second quarter, which show sales up from USD 11 to 14.6 million--over half of which came from two Wii titles: Cooking Mama: Cook Off and Bust a Move Bash.

Publisher Majesco has announced financial results for its second quarter, showing that sales are up from USD 11 to 14.6 million - over half of which came from Wii titles Cooking Mama: Cook Off and Bust a Move Bash.

Interim CEO Jesse Sutton 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."

Majesco said sales in the quarter came 84 per cent from its new releases, and 16 per cent from catalog sales. Of those total sales, 62 per cent were console titles (more than half of those for the Wii) and 37 percent were handheld titles (a third of those for Nintendo's DS).

Majesco officials said that USD 2.5 million related to a class action lawsuit settlement would be paid in company stock. As a result, the company made a Q2 loss of USD 1.3 million, despite an increase in sales.

"We look forward to putting this situation behind us and we believe that the settlement, if consummated, will have no effect on the companyâs ongoing operations,â Sutton said.

The company recently announced an agreement with Eidos Interactive to distribute its games in PAL territories. Even so, Majesco still expects fiscal 2007 sales to decline 10-15 per cent compared to fiscal 2006 sales of USD 66.7 million.

In the third quarter, Majesco plans to ship Guilty Gear, Mech Assault: Phantom War, Super Black Bass Fishing, Dino Master, Nacho Libre and F-24 Stealth Fighter through Eidos. The fourth quarter will see the release of Operation: Vietnam for DS, as well as the US release of The Wild West, Turn It Around, Nancy Drew and the Deadly Secret of Olde World Park, and Holly Hobbie & Friends for the DS and Kengo: Legend of the 9 for the Xbox 360.

Said Sutton, "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."

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