Current Report

Table of Contents

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 4, 2011
 
MAJESCO ENTERTAINMENT COMPANY
(Exact name of registrant as specified in its charter)
         
Delaware   000-51128   06-1529524
(State or other jurisdiction
of incorporation) 		  (Commission File Number)   (IRS Employer
Identification No.)
160 Raritan Center Parkway,
Edison, New Jersey 08837
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code: (732) 225-8910
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
o      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

TABLE OF CONTENTS

Item 2.02 Results of Operations and Financial Condition
ITEM 5.02 Departure of directors or principal officers; election of directors; appointment of certain officers; compensatory arrangements of certain officers
Item 9.01 Financial Statements and Exhibits
EX-99.1
EX-99.2

Table of Contents

Item 2.02 Results of Operations and Financial Condition
The information set forth under this “Item 2.02 — Results of Operations and Financial Condition,” including the exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Attached as Exhibit 99.1 is a copy of a press release of Majesco Entertainment Company (the “Company”) dated March 8, 2011, announcing certain unaudited financial results for the Company’s fiscal first quarter ended January 31, 2011.
Item 5.02 Departure of directors or principal officers; election of directors; appointment of certain officers; compensatory arrangements of certain officers.
(e) On March 4, 2011, the Company appointed Michael Vesey as the Company’s Chief Financial Officer. In connection with Mr. Vesey’s appointment, the Company has entered into an arrangement with Mr. Vesey pursuant to which Mr. Vesey will earn a base salary of $250,000 per calendar year (the “Base Salary”). In addition, he will be eligible to (i) receive an annual cash bonus in an amount up to 50% of the Base Salary based on the achievement of the objectives set forth as part of the Company’s incentive bonus plan for executives as described in a Current Report on Form 8-K filed with the Securities and Exchange Commission on January 20, 2011, and (ii) participate in any incentive compensation program(s) (including any long-term incentive programs) provided by the Company. Mr. Vesey will, in the event of a termination by the Company of his position without cause or good reason, receive severance payments in the form of continued salary for one (1) year after such termination. On March 4, 2011, the Company granted Mr. Vesey 100,000 common stock options under the Company’s stock equity plan at an exercise price of $1.64, the closing price on the grant date. In addition, the Company granted Mr. Vesey 100,000 shares of restricted common stock. The options and the restricted stock both vest equally over three years on each anniversary of the grant date.
Mr. Vesey, 48, served as our Interim Chief Financial Officer from August 20, 2010 until his appointment March 4, 2011 as Chief Financial Officer. Mr. Vesey joined the Company in May 2006 as its Corporate Controller and has also served as its Senior Vice President, Corporate Controller and Chief Accounting Officer. From November 2004 until he joined the Company, Mr. Vesey served as Chief Financial Officer of Nuvim, Inc. (OTC: NUVM), a company that markets and distributes dietary supplement beverages. As Chief Financial Officer of Nuvim, Mr. Vesey was responsible for overseeing all financial and accounting processes and procedures.
There are no family relationships between Mr. Vesey and any of the Company’s directors or executive officers. Mr. Vesey has not had any material direct or indirect interest in any of the Company’s transactions since the beginning of the Company’s last fiscal year or in any currently proposed transaction.
Attached as Exhibit 99.2 to this Current Report on Form 8-K is a copy of a press release of the Company dated March 8, 2010, announcing the appointment of Mr. Vesey to the position of Chief Financial Officer.
Item 9.01 Financial Statements and Exhibits
The following exhibit is furnished with this report:
     
Exhibit No.                          Description
 
99.1   Press Release dated March 8, 2011.
99.2   Press Release dated March 8, 2011.

 

Table of Contents

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  MAJESCO ENTERTAINMENT COMPANY
  		 
Dated: March 8, 2011
  		/s/ Jesse Sutton    
  Jesse Sutton   
  Chief Executive Officer   
 

 

Exhibit 99.1
Majesco Entertainment Company Reports First Quarter Fiscal 2011 Financial Results
Strong Quarterly Results; Raising Guidance for the Full Year
EDISON, N.J., March 8, 2011 /PRNewswire/ — Majesco Entertainment Company (Nasdaq: COOL), an innovative provider of video games for the mass market, today reported financial results for the first quarter ended January 31, 2011.
For the first quarter ended January 31, 2011, Majesco’s net revenues were $48.5 million versus $29.2 million in the same period a year ago. During this same period, the Company reported operating income of $8.0 million, compared to operating income of $2.5 million in the first quarter of 2010. Non-GAAP operating income was $8.3 million versus non-GAAP operating income of $3.5 million in 2010. Net income for the quarter was $6.8 million versus net income of $3.8 million in 2010. On a non-GAAP basis, net income for the quarter was $7.5 million compared to non-GAAP net income of $2.9 million last year.
The Company’s basic and diluted net income per share for the quarter ended January 31, 2011 was $0.18, compared to basic and diluted net income per share of $0.10 in the same period last year. Non-GAAP basic and diluted net income per share was $0.20 compared to net income per share of $0.08 last year. Please refer to the Reconciliation of GAAP to Non-GAAP Financial Measures table included later in this release for additional information and details on non-GAAP items.
Jesse Sutton, Chief Executive Officer of Majesco, said, “Majesco had one of its best holiday quarters in the company’s history. Zumba Fitness has proven to be an extremely successful title, and is quickly establishing itself as another key franchise alongside Cooking Mama. We were pleased with the Babysitting Mama and Crafting Mama launches, as both sold well at retail and show that the Cooking Mama brand is alive and well. We’ve also made significant progress with our digital initiative — we are building this business alongside our traditional retail business. We made our first real entry into the social games business with Cooking Mama Friends Café on Facebook, and are happy to announce that we have over 750,000 active users, despite a very limited marketing campaign to date. We are already hard at work preparing to launch our next Facebook game this spring — Parking Wars 2, based on the A&E television series in its fourth season. We plan to release at least 3 Facebook games this fiscal year, and have an experienced team working on optimizing the gameplay to improve the overall experience and monetization.”
Highlights
  •   First quarter 2011 net revenues were $48.5 million, an increase of $19.3 million, or 66 percent, compared to the same quarter last year. Growth was driven by the successful launches of Zumba® Fitness and Babysitting Mama.
 
  •   Gross margin for the first quarter 2011 was 40.5 percent, compared to 29.8 percent in 2010. The expansion in gross margin was driven by the higher price points of Zumba® Fitness, compared with our Wii and DS titles a year ago.
 
  •   Zumba® Fitness has quickly become one of the company’s fastest-selling titles, having sold over 1 million units in its first four months. Momentum continued past the holiday season, as Zumba® Fitness was the industry’s #2 best-selling title on the Wii in January, and the 5 th best selling title overall, according to the NPD Group.
 
  •   Babysitting Mama shipped in early November and starred the iconic Mama character in her latest brand extension. This innovative game was delivered with an adorable plush baby doll into which the babysitter tucks the Wii Remote™ in order to interact with the doll and game at the same time in 40 different activities.
 
  •   Cooking Mama Friends Café launched on Facebook in December, marking the Company’s first significant foray into the social gaming business. The game is free to play, supported by a micro-transaction model, and is an exciting new opportunity to broaden awareness for the Mama brand while introducing a viable new revenue stream for the Company. Despite being in Beta mode, with limited marketing support, Cooking Mama Friends Café already has over 750,000 monthly active users.
Announced Product Line-up
Second Quarter Fiscal 2011 Ending April 30, 2011
To date, the Company has announced the following titles that were or are expected to be released during its fiscal second quarter 2011:
  •   Monster Tale for Nintendo DS is being developed by the key leads behind the critically acclaimed Henry Hatsworth in the Puzzling Adventure . The game mixes platform game play on the top screen with a deep pet-raising game on the Touch Screen to create a dynamic, one-of-a-kind adventure. The heroes of this intriguing tale are little Ellie and a mysterious young monster named Chomp, who together set out to reclaim the Monster World from the Kid Kings and their enslaved creature pets.

 

 

  •   Greg Hastings Paintball 2 for PlayStation®Network is the most realistic paintball experience to date from the #1 name in the sport. The game introduces more than 10 single and multiplayer game modes, each staged in all-new paintball locations based on 62 actual fields around the world. Featuring three new event branches — Tournament Speedball, Recball, and Tournament Woodsball — players can build and develop their team of professional ballers to conquer the field. Support for the PlayStation®Move motion controller ensures precise targeting in online battles with up to 14 friends.
 
  •   Left Brain Right Brain for iPhone, iPad and iPod Touch is based on the best-selling Nintendo DS ambidextrous brain game franchise that lets players sharpen their mental skills by training the left and right hemispheres of their brain with activities based on speed, accuracy, association, recognition, memory and strategy.
Fiscal 2011
To date, the Company has announced the following titles that are expected to be released during the rest of fiscal 2011:
  •   Cake Mania Main Street for Nintendo DS is based on the best-selling Cake Mania franchise that has been downloaded more than 200 million times and sold more than 700,000 copies worldwide on DS and Wii. The game features 100 new levels of fast-paced gameplay marked by the series’ signature time management mechanic, but this time players must run entirely new businesses, including a burger barn, flower shop and sushi restaurant.
 
  •   Parking Wars 2 for Facebook is based on the hit real-life television series “Parking Wars”, now in its fourth season on A&E. The game picks up where the 2008 Facebook game of the same name left off, as players ticket those cars left at expired meters while avoiding getting parking tickets from their friends. This “freemium” game supported by micro-transactions lets players monitor and maintain their own street, keeping track of those parking on it while developing new properties to attract patrons and generate income.
 
  •   Face Kart: Photo Finish for Nintendo 3DS literally puts YOU in the driver’s seat of an arcade style kart racer; players take photos of their face with their Nintendo 3DS camera and use them as avatars for their custom 3D racers, billboards and power-ups.
 
  •   Pet Zombies for Nintendo 3DS lets players reanimate their very own zombies with a range of customizations and then care for (or torment!) their pets as they play with them in creepy 3D environments.
Fiscal 2011 Outlook
The Company expects fiscal 2011 full year net revenue in a range of $100 to $110 million, up from the prior range of $85 to $90 million, and non-GAAP EPS of $0.20 to $0.25, up from $0.06 to $0.10. We have not provided a reconciliation of forward-looking GAAP and Non-GAAP financial measures due to the potential effects that changes in our stock price may have on the fair value of outstanding warrants. However, we expect non-cash compensation to amount to approximately $0.03 to $0.05 per share in fiscal 2011.
The Company’s guidance assumes the release of approximately 19 SKUs in 2011, including six for the 3DS, four for Kinect for the Xbox 360, three for Playstation 3, two for Wii and four for DS. The Company’s results are also impacted by seasonality from the December holiday period and variability based on release schedules.
2011 RELEASE SCHEDULE
             
Quarter 1   Quarter 2   Quarter 3   Quarter 4
Babysitting Mama Wii, $49.99
  Monster Tale DS, $29.99   Cake Mania Main
Street DS 		  Face Kart: Photo
Finish 3DS
Zumba Fitness for Kinect, Wii and Move, $49.99 Kinect, $39.99 Wii and Move
  Zumba Fitness for Wii and Move (Europe)   Parking Wars 2 for Facebook; freemium   Pet Zombies 3DS
Zumba Fitness for
Kinect (Europe)
  Greg Hastings Paintball 2
PSN, Price TBA 		       
Cooking Mama Friends’ Café Facebook; freemium
  Left Brain Right Brain iPhone        
Conference Call

 

 

At 4:30 p.m. (EST) today, management will host an earnings conference call. To access the call in the U.S., please dial 1-800-860-2442. Please dial in approximately 10 minutes prior to the start of the conference call. The conference call will also be broadcast live over the Internet and available for replay for 90 days from the “Investor Info” section of the Company’s website at http://www.majescoentertainment.com . In addition, a replay of the call will be available via telephone for seven days beginning approximately two hours after the call. To listen to the telephone replay in the U.S., please dial 1-877-344-7529 and for international callers, dial 1-412-317-0088. Enter access code 449033.
Generally Accepted Accounting Principles (GAAP) and Non-GAAP Metrics
To facilitate a comparison between the three months ended January 31, 2011 and 2010, the Company has presented both GAAP and non-GAAP financial results. GAAP financial measures, including operating income, net income, and basic and diluted earnings per share, have been adjusted to report certain non-GAAP financial measures.
These non-GAAP financial measures exclude the following items from the Company’s consolidated statements of operations:
  •   Expenses related to non-cash compensation
 
  •   Net proceeds from sale of certain state income tax net operating loss carryforwards
 
  •   Change in fair value of warrants
 
  •   Severance costs for workforce reduction
These non-GAAP measures are provided to enhance investors’ overall understanding of the Company’s current financial performance and the Company’s prospects for the future. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.
For more information on these non-GAAP financial measures, please see the tables in this release captioned “Reconciliation of GAAP and Non-GAAP Financial Measures”.
About Majesco Entertainment Company
Majesco Entertainment Company is a provider of video games for the mass market. Building on more than 20 years of operating history, the Company is focused on developing and publishing a wide range of casual and family oriented video games on Kinect for Xbox 360®, PlayStation®Move motion controller, Wii™, Nintendo 3DS™ and DS™, Facebook® Platform, mobile and other leading platforms. Product highlights include Cooking Mama ™, Babysitting Mama ™, TETRIS® Party Deluxe and Zumba Fitness® . The Company’s shares are traded on the Nasdaq Stock Market under the symbol: COOL. Majesco is headquartered in Edison, NJ and has an international office in Bristol, UK. More info can be found online at www.majescoentertainment.com or on Twitter at www.twitter.com/majesco .
For additional information, please contact:
Todd Greenwald, CFA
Director of Investor Relations & Strategic Planning
732-476-1938
tgreenwald@majescoentertainment.com
Safe Harbor
Some statements set forth in this release, including the estimates under the headings “Fiscal 2011 Outlook” contain forward-looking statements that are subject to change. Statements including words such as “anticipate”, “believe”, “estimate” or “expect” and statements in the future tense are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Some of the factors which could cause our results to differ materially from our expectations include the following: consumer demand for our products, the availability of an adequate supply of current-generation and next-generation gaming hardware, including but not limited to Nintendo’s DS and Wii™ platforms; our ability to predict consumer preferences among competing hardware platforms; consumer spending trends; the seasonal and cyclical nature of the interactive game segment; timely development and release of our products; competition in the interactive entertainment industry; developments in the law regarding protection of our products; our ability to secure licenses to valuable entertainment properties on favorable terms; our ability to manage expenses; our ability to attract and retain key personnel; adoption of new accounting regulations and standards; adverse changes in the securities markets; our ability to comply with continued listing requirements of the Nasdaq stock exchange; the availability of and costs associated with sources of liquidity; and other factors described in our filings with the SEC,

 

 

including our Annual Report on Form 10-K for the year ended October 31, 2010. We do not undertake, and specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

 

 

MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
UNAUDITED SUPPLEMENTARY PRODUCT DATA
NET SALES BY PLATFORM FOR THREE MONTHS
(Unaudited, in thousands)
                                 
    Three Months Ended January 31,  
    2011     %     2010     %  
Nintendo Wii
  $ 25,899       53.4 %   $ 7,973       27.3 %
Microsoft Xbox 360
    10,944       22.6 %     176       0.6 %
Nintendo DS
    9,018       18.6 %     20,255       69.4 %
Sony Playstation 3
    2,331       4.8 %     0       0.0 %
Other
    274       0.6 %     802       2.7 %
 
                       
TOTAL
  $ 48,466       100.0 %   $ 29,206       100.0 %
 
                       
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET DATA
(In thousands, except share data)
                 
    January 31,     October 31,  
    2011     2010  
    (Unaudited)          
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 7,889     $ 8,004  
Due from factor
    13,769       1,015  
Accounts and other receivables, net
    844       725  
Inventory, net
    7,240       8,418  
Advance payments for inventory
    643       5,454  
Capitalized software development costs and license fees
    3,521       4,903  
Prepaid expenses
    486       921  
 
           
Total current assets
    34,392       29,440  
Property and equipment, net
    551       520  
Other assets
    69       69  
 
           
Total assets
  $ 35,012     $ 30,029  
 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable and accrued expenses
  $ 14,768     $ 11,375  
Inventory financing payables
    84       5,557  
Advances from customers
    555       945  
 
           
Total current liabilities
    15,407       17,877  
Warrant liability
    560       144  
Commitments and contingencies
               
Stockholders’ equity:
               
Common stock — $.001 par value; 250,000,000 shares authorized; 39,519,707 and 39,326,376 shares issued and outstanding at January 31, 2011 and October 31, 2010, respectively
    40       39  
Additional paid-in capital
    115,100       114,824  
Accumulated deficit
    (95,571 )     (102,333 )
Accumulated other comprehensive loss
    (524 )     (522 )
 
           
Net stockholders’ equity
    19,045       12,008  
 
           
Total liabilities and stockholders’ equity
  $ 35,012     $ 30,029  
 
           

 

 

MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENT OF OPERATIONS DATA
(Unaudited, in thousands, except share data)
                 
    Three Months Ended  
    January 31  
    2011     2010  
Net revenues
  $ 48,466     $ 29,206  
 
           
Cost of sales
               
Product costs
    20,823       11,728  
Software development costs and license fees
    8,012       7,867  
Loss on impairment of software development costs and license fees — future releases
    —       905  
 
           
 
    28,835       20,500  
 
           
Gross profit
    19,631       8,706  
 
           
Operating costs and expenses
               
Product research and development
    1,230       934  
Selling and marketing
    7,009       3,056  
General and administrative
    3,308       2,124  
Depreciation and amortization
    45       53  
 
           
 
    11,592       6,167  
 
           
Operating income
    8,039       2,539  
Other expenses (income)
               
Interest and financing costs, net
    710       497  
Change in fair value of warrants
    416       (202 )
 
           
Income before income taxes
    6,913       2,244  
Income taxes
    151       (1,563 )
 
           
Net income
  $ 6,762     $ 3,807  
 
           
Net income per share:
               
Basic
  $ 0.18     $ 0.10  
 
           
Diluted
  $ 0.18     $ 0.10  
 
           
Weighted average shares outstanding:
               
Basic
    37,638,705       36,808,062  
 
           
Diluted
    37,732,220       36,829,239  
 
           

 

 

MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS DATA
(Unaudited, in thousands)
                 
    Three Months Ended  
    January 31,  
    2011     2010  
CASH FLOWS FROM OPERATING ACTIVITIES
               
Net income
  $ 6,762     $ 3,807  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
    45       53  
Change in fair value of warrants
    416       (202 )
Non-cash compensation expense
    276       522  
Loss on disposal of assets
    —       19  
Provision for price protection and customer allowances
    1,887       1,169  
Amortization of software development costs and license fees
    2,784       2,186  
Loss on impairment of software development costs and license fees
    25       905  
Changes in operating assets and liabilities:
               
Due from/(to) factor
    (14,238 )     (6,671 )
Accounts and other receivables
    (521 )     (645 )
Inventory
    1,178       2,599  
Capitalized software development costs and license fees
    (1,427 )     (1,957 )
Advance payments for inventory
    4,811       2,472  
Prepaid expenses and other assets
    435       304  
Accounts payable and accrued expenses
    3,394       2,741  
Advances from customers and other liabilities
    (391 )     (374 )
 
           
Net cash provided by operating activities
    5,436       6,928  
 
           
CASH FLOWS FROM INVESTING ACTIVITIES
               
Purchases of property and equipment
    (77 )     (4 )
 
           
Net cash used in investing activities
    (77 )     (4 )
 
           
CASH FLOWS FROM FINANCING ACTIVITIES
               
Inventory financing
    (5,472 )     (6,053 )
 
           
Net cash used in financing activities
    (5,472 )     (6,053 )
 
           
Effect of exchange rates on cash and cash equivalents
    (2 )     (7 )
 
           
Net (decrease) increase in cash and cash equivalents
    (115 )     864  
Cash and cash equivalents — beginning of period
    8,004       11,839  
 
           
Cash and cash equivalents — end of period
  $ 7,889     $ 12,703  
 
           
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
               
Cash paid for interest
  $ 710     $ 497  
 
           

 

 

MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited, in thousands, except share amounts)
                 
    Three Months Ended  
    January 31,  
    2011     2010  
GAAP operating income
  $ 8,039     $ 2,539  
Non-cash compensation (1)
    276       544  
Severance (2)
    —       403  
 
           
Non-GAAP operating income
  $ 8,315     $ 3,486  
 
           
 
               
GAAP net income
  $ 6,762     $ 3,807  
Non-cash compensation (1)
    276       544  
Severance (2)
    —       403  
Change in fair value of warrants (3)
    416       (202 )
Sale of NJ state operating loss carryforwards (4)
    —       (1,656 )
 
           
Non-GAAP net income
  $ 7,454     $ 2,896  
 
           
 
               
GAAP net income per diluted share
  $ 0.18     $ 0.10  
Non-cash compensation (1)
    0.01       0.01  
Severance (2)
    —       0.01  
Change in fair value of warrants (3)
    0.01       (0.01 )
Sale of NJ state operating loss carryforwards (4)
    —       (0.04 )
 
           
Non-GAAP net income per diluted share
  $ 0.20     $ 0.08  
 
           
Shares used in GAAP and Non-GAAP per diluted share amounts
    37,732,220       36,829,239  
 
           
 
(1)   Represents expenses recorded for stock compensation expense. The Company does not consider stock-based compensation charges when evaluating business performance and management does not consider stock-based compensation expense in evaluating its short and long-term operating plans.
 
(2)   Represents one time severance costs related to a workforce reduction. During January 2010, Company management initiated a plan of restructuring to better align its workforce to its revised operating plans. As part of the plan, the Company reduced its personnel count by 16 employees, representing 17% of its workforce.
 
(3)   Represents the change in the fair value of warrants classified as a liability. The fair value of the warrants is calculated at each balance sheet date with a corresponding charge or credit to earnings for the amount of the change in fair value.
 
(4)   In December 2009, we received proceeds of approximately $1.6 million from the sale of the rights to approximately $21.2 million of New Jersey state income tax operating loss carryforwards, under the Technology Business Tax Certificate Program administered by the New Jersey Economic Development Authority. Net proceeds were recorded as an income tax benefit during the three months ended January 31, 2010.

 

Exhibit 99.2
Majesco Entertainment Names Michael Vesey Chief Financial Officer
EDISON, N.J., March 8, 2011 /PRNewswire/ — Majesco Entertainment Company (Nasdaq: COOL), an innovative provider of video games for the mass market, today appointed Michael Vesey as its Chief Financial Officer.
Mr. Vesey, 48, has been with Majesco for over four years, and has been acting as the company’s interim CFO since August 2010. Prior to that, he was Senior Vice President, Corporate Controller, and Chief Accounting Officer. Before coming to Majesco in 2006, Michael was Chief Financial Officer at Nuvim, Inc., a maker of dietary supplement beverages. Mr. Vesey’s experience includes over twenty years of senior financial management positions in the software and wireless industries. He is a certified public accountant and holds a BBA from Pace University.
Jesse Sutton, Chief Executive Officer of Majesco, said, “I am very happy to announce that Mike is our CFO. Mike has been with Majesco for over four years now, and has proven to be a valuable asset to the company. We are fortunate to have someone with his experience to oversee and lead our financial strategy. We are confident in his ability to manage our finances, and drive our goals of strengthening our balance sheet while continuing to invest in our product pipeline and strategic growth plan.”
“I am extremely pleased to officially be named the CFO of Majesco,” said Mr. Vesey. “This is an exciting time for the company, and I look forward to helping Majesco build on the solid foundation already in place, and help the management team execute on all of its strategic goals.”
About Majesco Entertainment Company
Majesco Entertainment Company is a provider of video games for the mass market. Building on more than 20 years of operating history, the Company is focused on developing and publishing a wide range of casual and family oriented video games on Kinect for Xbox 360®, PlayStation®Move motion controller, Wii™, Nintendo 3DS™ and DS™, Facebook® Platform, mobile and other leading platforms. Product highlights include Cooking Mama ™, Babysitting Mama ™, TETRIS® Party Deluxe and Zumba Fitness® . The Company’s shares are traded on the Nasdaq Stock Market under the symbol: COOL. Majesco is headquartered in Edison, NJ and has an international office in Bristol, UK. More info can be found online at www.majescoentertainment.com or on Twitter at www.twitter.com/majesco .
Safe Harbor
Some statements set forth in this release, including the estimates under the headings “Fiscal 2011 Outlook” contain forward-looking statements that are subject to change. Statements including words such as “anticipate”, “believe”, “estimate” or “expect” and statements in the future tense are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Some of the factors which could cause our results to differ materially from our expectations include the following: consumer demand for our products, the availability of an adequate supply of current-generation and next-generation gaming hardware, including but not limited to Nintendo’s DS and Wii™ platforms; our ability to predict consumer preferences among competing hardware platforms; consumer spending trends; the seasonal and cyclical nature of the interactive game segment; timely development and release of our products; competition in the interactive entertainment industry; developments in the law regarding protection of our products; our ability to secure licenses to valuable entertainment properties on favorable terms; our ability to manage expenses; our ability to attract and retain key personnel; adoption of new accounting regulations and standards; adverse changes in the securities markets; our ability to comply with continued listing requirements of the Nasdaq stock exchange; the availability of and costs associated with sources of liquidity; and other factors described in our filings with the SEC, including our Annual Report on Form 10-K for the year ended October 31, 2010. We do not undertake, and specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.