Mad Catz Reports Massive Third-Quarter Loss

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Mad CatzPeripheral manufacturer Mad Catz released its financial results for its fiscal third quarter ended December 31, 2008.
For the quarter, Mad Catz reported a net loss of $26.909 million, compared to net income of $3.310 million in the same quarter the prior year. According to Mad Catz, problems arose from "provisions for increased inventory reserves, higher royalty expenses, increased costs due to added product development staff and higher shipment costs. The inventory reserve provisions were necessary due to the uncertain state of the economy and the retail industry."

To make matters worse, Mad Catz fell below certain financial triggers relating to its credit facility with Wachovia Capital Finance Corporation. While Wachovia has waived these violations, the two parties are renegotiating the agreement (almost certainly resulting in increased costs for Mad Catz).

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This page contains a single entry by Editor published on February 13, 2009 5:20 AM.

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