Shares of Majesco Entertainment
Revenue nearly tripled to $32.1 million. Earnings, adjusted for a charge related to warrants valuation, reversed a year ago loss to clock in at $0.13 a share. Analysts were only banking on a profit of $0.07 a share on $25.5 million in revenue.
Though the video game industry has been in a funk in recent years, Majesco has a hit on its hands with its Zumba Fitness workout title. Taking advantage of the motion-based controllers on all three console systems to deliver a fitness experience that combines dance moves with scoring, Majesco has sold 2 million units worldwide since it launched the game just before last year's holiday shopping season.
In short, Cooking Mama is no longer the only hit title in Majesco's kitchen. The company has a compelling slate of releases for the balance of the fiscal year, is making major headway in social gaming after a recent acquisition, and is gearing up for a Zumba Fitness sequel that will hit sweaty gamers come November.
Zumba Fitness's success means a lot for the company. A year ago, 98% of Majesco's sales were for games on Nintendo's (OTC BB: NTDOY.PK) Wii and DS platforms. Last year's rollout of Microsoft's
Majesco's market cap of merely $177 million is a plus. Cranking out a licensed property the sells 2 million units wouldn't have much of an impact for giants Activision Blizzard
The moderate success of the Cooking Mama, Cake Mania, and now Zumba Fitness franchises have helped turn Majesco into one of the hottest video game stocks on the market, following a fivefold advance over the past year. In contrast, shares of industry leader Activision Blizzard have largely marched in place during that time. Electronic Arts and Take-Two Interactive
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