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Mad Catz Reports $26.9 Million Loss Despite Sales Increase
by David Jenkins [PC, Console/PC, Mobile Console]
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February 16, 2009
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Third party peripheral maker Mad Catz has seen a $26.9 million loss over its fiscal third quarter ending December 31st -- largely due to a $28.5 million one-time charge related to "goodwill impairment, amortization of intangible assets and stock-based compensation".
It wasn’t all bad news, though -- sales were up 19 percent to $34.3 million, in part due to the boost from the acquisition of rival Saitek. Sales in North America were up 21 percent to $24.7 million and in Europe they rose by 9 percent to $14.5 million.
The firm is most recently notable for its range of officially licensed Rock Band peripherals, including cymbal kits, basses and microphones, as well as a range of licensed Street Fighter IV controllers and arcade sticks that are shortly to launch.
The company’s unadjusted earnings results did fall below the level demanded by its credit facility with Wachovia Capital Finance. Wachovia has agreed to ignore the issue, though, and amend its credit rules for the future.
"Throughout the 2008 holiday season, Mad Catz further strengthened its presence on the current generation of consoles with net sales for these consoles in the third quarter increasing approximately 57 percent from prior year levels," said Mad Catz president and CEO Darren Richardson.
"We are aggressively pursuing additional efficiencies to effect further reductions in our cost structure while maintaining the necessary infrastructure to support a much larger revenue base as we deliver more entertaining products for gamers with the goal of enhancing shareholder value," he added.
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