Majesco Entertainment Company F2Q09 (Qtr End 04/30/09) Earnings Call Transcript

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2009-06-16 02:13:20.0

Tags: Call Transcript, Earnings, Question, GAAP, Product Development, Marketing Research, Branding, Financial Accounting, Finance, Research & Development, Business Operations, Marketing, Seeking Alpha, Majesco Entertainment Co.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from the line of Sean McGowan – Needham & Company

Sean McGowan – Needham & Company

I have two questions, the first of which is could you comment on what feedback you’re getting from retailers regarding the sell through of some of the key titles during the quarter especially the recent ones and second, if you could comment why with the increase in revenue guidance there isn’t more of an increase in non-GAAP earnings guidance.

Gui Karyo

With regards to the sell through, its very rare that we comment on the sell through of individual titles unless they pass specific milestones, but I will say is that its been a solid spring for us and that we are looking forward to having a healthy spring and fall release. And that Mama in particular, Gardening Mama in particular has sold above our initial expectations, not just in and through which again emphasizes the power of the Mama brand extension.

John Gross

To your latter question, not included in the GAAP adjustment are our marketing investments which as we indicated the first time around we’re being, I don’t want to say its cautious, but we’re being somewhat conservative in terms of our expectations for those and letting them play out. So just as with the Go Play at the end of the second quarter we have additional marketing investments planned for the balance of the year and are taking a similar approach with those.

Operator

Your next question comes from the line of John Taylor – Arcadia Investment Corp.

John Taylor – Arcadia Investment Corp.

I’ve got a couple of questions as well, I wonder if you could talk a little bit about what the closure of California means in terms of your cash product development budget for the year and next year, is there any material difference between what you now expect and what you expected when you had that in house, that’s the first part. I guess the second part is of the charges that your reporting, how many of those are going to end up being paid in cash as opposed to product write-downs, non-cash charges. And the third part of that question I guess is are there assets that were developed or started or whatever by that studio that can be transferred or do they basically have to be all started over again. So that’s the first question.

 

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