* Q3 adj EPS $0.03 vs est loss $0.02/shr
* Q3 rev $19.5 mln vs est $17.5 mln
* Sees FY 2011 adj $0.35-$0.38 vs est $0.37
* Sees FY 2011 rev $120-$130 mln vs est $125.7 mln
(Adds details in paragraphs 2-7; CEO comment; updates shares)
Sept 13 Video game publisher Majesco
Entertainment Co raised its full-year outlook for the
third time as it bets on the upcoming launch of the sequel to
its popular Zumba Fitness title and the digital version of party
The company, which gets about 70 percent of its revenue from
the Zumba titles, expects "Twister" and other games lined up for
the holiday season to help it shed its "one-game wonder" image.
The "Zumba Fitness" game, launched in 2010 and based on
motion-sensing technology, has sold more than 3 million copies
worldwide and continues to be one of the top-ranked games in the
United States and the United Kingdom.
Majesco plans to follow up the runaway success of "Zumba
Fitness" with its sequel, "Zumba Fitness II", scheduled for
launch in November on Nintendo's Wii gaming console.
The company also publishes titles for other consoles like
Sony's PlayStation 3 and Microsoft's Xbox 360
Kinect as well as Facebook, which has emerged as a popular
destination for social gaming.
"This holiday we expect to launch many titles for the Kinect
as well as the Nintendo DS," said Chief Executive Jesse Sutton
said in a conference call with analysts.
"As more and more casual gamers migrate to new motion-based
gaming platforms like the Kinect and the Wii, we believe this
will create more opportunity for us given our demographic focus
on family and casual gamers."
Apart from "Zumba II" and "Twister", Majesco is also looking
to launch games such as "Alvin and the Chipmunks: Chipwrecked"
and "Hulk Hogan's Main Event" on Wii and Kinect during the
Majesco expects a adjusted profit of 35-38 cents a share on
sales of $120-$130 million for the year ending Oct 31.
Previously, the company had forecast an adjusted profit of
30-35 cents a share on sales of $110-$120 million for 2011.
Analysts were expecting full-year adjusted profit of 37
cents a share on sales of $125.7 million, according to Thomson
Gross margin for the quarter rose to 40.7 percent, compared
with 22.9 percent last year, driven by the premium pricing of
The company expects to spend about $1.5-$2 million on
advertising and marketing to push new games and expects to
benefit from these in the first quarter of fiscal 2012.
May-July net income was $1.9 million, or 5 cents a share,
compared with a loss of $1.6 million, or a net loss of 4 cents a
share, a year ago.
On an adjusted basis, it earned 3 cents a share.
The company, whose larger rivals include Electronic Arts Inc
Take-Two Interactive Software Inc and THQ Inc
, said sales rose 61 percent to $19.5 million.
Analysts, on average, expected a loss of 2 cents a share on
sales of $17.5 million.
Shares of the Edison, New Jersey-based company closed at
$2.66 on Tuesday on Nasdaq.
(Reporting by Soham Chatterjee in Bangalore; Editing by