4. Majesco Entertainment (COOL - Get Report) develops video game products for the family-oriented, mass-market consumer. The company publishes video games for interactive entertainment hardware platforms including Nintendo's DS, DSi and Wii, Sony's PlayStation 3, and PlayStation Portable (PSP) and Microsoft's Xbox 360. It also publishes games for numerous digital platforms such as iPhone, iPad, and iPod Touch, as well as online platforms.
Net revenue for the second quarter of 2011 surged to $32.1 million from $10.9 million in the year-ago quarter, driven by Zumba Fitness released in the first quarter of 2011 on three platforms, the Nintendo Wii, Kinect for the Xbox 360, and Sony's Move for the Playstation. Zumba Fitness has now sold over 2 million copies worldwide.
With the success of Zumba Fitness, the company swung to a net income of $2.1 million, or 5 cents a share. This compares to a loss of $1.6 million, or 4 cents per share, in the year-ago quarter. At the end of April 2011, cash and cash equivalents more than doubled to $18.5 million from $8 million at the end of October 2010. Operating cash flows stood at $14.7 million from $4.6 million.
Going forward, the company expects fiscal 2011 revenue to range from $110 million to $120 million, up from the prior range of $100 million to $110 million. Non-GAAP income is forecast at 30 to 35 cents per share, up from 20 to 25 cents per share.Of the three analysts covering the stock, 67% recommend a buy and the remaining rate a hold. There are no sell ratings on the stock. On average, analysts estimate 68.5% upside to $4.50 in value from current levels.