Mad Catz Sees European Sales Jump In First Quarter

Representatives from third party peripheral manufacturer Mad Catz Interactive have announced the company’s first quarter financial results, with gross profits increasing by as much as 31.9 percent for the three months ended June 30th. Net sales for the quarter were down by 19.6 percent on the same time last year, to $14.6 million, with the company recording a net loss for the period of $0.2 million, or break even on a per share basis - an improvement from a loss of $0.9 million the previous year. The company also reported that European sales rose by 69.4 percent from the same period last year to a total of $4.2 million. Also of note is that accessories for the Xbox 360, Wii and PlayStation 3 accounted for 46 percent of the company’s overall net sales worldwide, compared to 39 percent in the previous fourth quarter and just 11 percent a year ago. In addition to the company’s existing licensing deals for BioWare’s Mass Effect and Microsoft’s Halo 3, it has also recently signed a licensing agreement with Ubisoft to produce accessories based on the forthcoming Assassin’s Creed and Splinter Cell: Conviction. The company also has similar licensing agreements with the NHL, NFL, NBA and MLB. Commenting on the results, Darren Richardson, Mad Catz president and CEO, stated, "Despite the fact that year-over-year net sales decreased due to contributions from Real World Golf sales in the prior year first quarter and ongoing effects of the console transition, we were able to achieve record gross margin levels of over 32% fueled by the continued elimination of select low margin product placements, lower inventory levels and decreased distribution costs.” "With our seasonally slowest quarter now behind us, the benefit of a broad portfolio of licensed brands and continued penetration into the current generation console marketplace, Mad Catz is poised to enter what will be an important holiday season,” added Richardson.