Majesco Entertainment Co. reported consolidated unaudited earnings results for the fourth quarter and full year ended October 31, 2012. For the quarter, the company reported revenue of $26.6 million, a 6% increase from the $25.1 million reported in the fourth quarter last year. The increase was primarily due to the timing of pre- holiday release schedule. Non-GAAP net loss was $2.7 million, flat with a non-GAAP net loss from the prior year. Non-GAAP diluted net loss per share for the fourth quarter was $0.07 in both periods. Operating loss was $3.0 million compared to $3.0 million in the fourth quarter of 2011. Net loss was $2.7 million versus a net loss of $3.9 million in 2011. Basic and diluted net loss per share was $0.07 compared to $0.10 in the same period last year. Loss before income taxes was $2.835 million against $3.889 million a year ago. Non-GAAP operating loss was $2.603 million compared to $2.546 million for the comparable 2011 period.

For the full year, the company reported revenue of $132.3 million, a 6% increase compared to $125.3 million a year ago. The increase was primarily due to increased sales for Zumba Fitness products, partially offset by decreased sales of catalog games for the Nintendo DS and Wii. The 2012 results improved revenue from the release of 2 Zumba Fitness sequel products for the Wii and Xbox 360, as well as catalog sales of original Zumba Fitness product. Non-GAAP net income for the full year decreased to $4.4 million compared to $11.1 million in the prior year. Non-GAAP diluted earnings per share decreased to $0.10 compared to $0.28 in 2011. These earnings came in below its guidance primarily due to accelerated amortization and inventory write-offs related to Baller Beats in the fourth quarter. Net cash provided by operating activities was $6.1 million compared to $9.4 million during the prior year. The decrease was primarily due to operating income, which is $8 million lower than 2011, offset by lower working capital needs and investment in capitalized software and licensing costs. Operating income was $3.7 million compared to $11.4 million in the same period a year ago. Non-GAAP operating income was $5.4 million compared to $12.8 million for the comparable 2011 period. Net income was $4.6 million compared to $6.8 million a year ago. Basic and diluted earnings per share was $0.12 and $0.11, respectively compared to basic and diluted earnings per share of $0.18 and $0.17, respectively, for the corresponding period in 2011. Purchases of property and equipment were $0.338 million compared to $0.465 million a year ago. Income before income taxes was $4.686 million against $7.258 million a year ago.

The company expects net sales for the first quarter and full year 2013 to be impacted and be significantly lower than 2012. The company expect to report between a modest loss to breakeven results for the first quarter and a loss for the year on a non-GAAP basis prior to any severance or one-time charges due to the realignment.