Majesco Entertainment F3Q09 (Qtr End 7/31/09) Earnings Call Transcript

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2009-09-14 16:07:12.0

Tags: Revenue, Marketing, Call Transcript, Needham & Co., GUI, Earnings, Needham, Seeking Alpha, Majesco Entertainment Co.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from Sean MacGowan from Needham.

Sean MacGowan - Needham & Company

Thanks, a couple of questions, if I can -- whether it’s Jesse or John, whoever would prefer to answer it, how much of the reduction in the marketing spend expected in the fourth quarter is a result of seeing maybe not getting a good return on that investment in the third quarter, or was it already planned to be lower?

Jesse Sutton

It was already planned to be lower. I’ll actually have Gui, if you want to address that.

Gui Karyo

Sure, yeah and -- it really -- there’s no change in our anticipated marketing spend for the fourth quarter per se. We did already have plans for Jillian and Mama in particular that remained about the same, as well as for the other SKUs that we are releasing. Obviously we’ve taken some lessons from what has happened over the summer with the Go Play line but to the point Jesse made in the script, you know, we have always viewed the larger marketing expenses on a case-by-case basis. This is just information that is fueled how we will look at [inaudible].

Sean MacGowan - Needham & Company

Okay, and maybe Gui, you can address this as well then -- given what happened with some of these titles in the summer, how clean would you say you left the trade, you know, in terms of allowances or just actual inventory out there?

Gui Karyo

You know, I don’t think we’ve ever spoken specifically about how clean we’ve left the trade on a product and that’s a precedent I don’t think we’re prepared to start. What I would say is that for the past three years, through a variety of products, both very successful and less successful, we have managed to maintain a very healthy relationship with our retail partners on the net balance of inventory and I would say that going forward, we expect to see the same.

Sean MacGowan - Needham & Company

Okay. Thank you.

John S. Gross

Sean, actually in the case of both Go Play and Night at the Museum, we did address them immediately to the extent it came up, so -- and which is what we always do, but for certain we did.

Sean MacGowan - Needham & Company

Okay, and the last question is you know, I think throughout this year, you have kind of nudged the revenue goal up a bit. Given what’s a pretty robust release schedule, you know, with some question -- I mean, there’s some products that we don’t really know how well they will do -- would you say there is upside potential in your revenue range for the fourth quarter?

 

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