Mad Catz Reveals Flat Profit, Decreased Revenue, Rock Band Hopes

Third-party accessory manufacturer Mad Catz Interactive has announced its financial results for its fiscal year ended March 31, 2008, reporting its profit at $3.2 million, compared to $3.7 million in the same period the previous year. Net sales for the year were $87.6 million, a decrease of 12% from $99.7 million in the 2007 fiscal year for the firm, which sells branded game controllers, cables, and other accessories. However, its Q4 revenues were $21.9 million, up 19% from $19.3 million in the previous year. The company noted several highlights which impacted its results in fiscal 2008, including a multi-year agreement with Harmonix and MTV Games to produce licensed Rock Band accessories. As Mad Catze president and CEO Darren Richardson noted: "We secured the license to produce and distribute game accessories for the hit Rock Band game with initial North American and European product shipments scheduled for the second quarter of fiscal 2009." "Rock Band has quickly emerged as the leading platform for music fans and gamers in the explosive music category and Mad Catz is the only third-party company to have a license to produce musical instruments. Given the game’s popularity, we believe future sales of our bass, microphone and drum accessories will be important sources of revenue throughout fiscal 2009." Other major deals include a multi-year agreement with Coffin Case Company to produce accessories and cases for use with Rock Band and Guitar Hero, and its assimilation of PC games peripherals provider Saitek, which was acquired in November 2007. Said Mad Catz' Richardson: “Fiscal 2008 was an important year for Mad Catz in which we diversified and expanded our product lines through acquisition and internal development while building our portfolio of prominent licenses... In fiscal 2009 we expect to benefit from the wide range of opportunities established in fiscal 2008 and will continue to focus on diversifying and expanding our sources of revenue and creating long-term shareholder value."