Mad Catz Reports Slightly Better Second Quarter Thanks to Accounting, Not Sales

For its fiscal second quarter ended September 30, 2011, Mad Catz reported net income of $1.128 million compared to a net loss of $480,000 in the same quarter the previous year. Sadly, the positive result was largely bolstered by a one-time gain related to an adjustment in the liability associated with warrants issued in April 2012. Sales were low, but a change in the valuation of that liability made the results look better than expected. Mad Catz is still blaming the decrease in revenues from peripherals relating to Rock Band-style games for its poor results.