Today, Mad Catz released their earnings for the fiscal fourth quarter and the fiscal year ended March 31, 2010. For the year, Mad Catz reported record high net sales of $119 million, up from $112.6 million for the same period last year. The company also dug itself out of a financial hole, with a net income of $4.4 million, versus a net loss of $32.6 million for fiscal year 2009.
For the fourth quarter, Mad Catz reported record sales of $26.3 million, a 15.4% increase from $22.8 million a year earlier. Net income once again marked a gain as opposed to last year's loss, with a reported $838,000 after last year's $3.6 million loss.
“Our record sales and profits in fiscal 2010 reflect the strategic and operational initiatives we’ve undertaken over the past few years which we believe position the Company for continued growth in the future,” said Mad Catz CEO Darren Richardson in response to the results. “The Company’s revenue growth in the face of challenging economic and industry environments reflects continued progress in our efforts to expand our offerings of premium and distinctive interactive entertainment accessories at higher price points and with strong margins.”
“I am pleased to report that we have achieved the goal we set at the beginning of the fiscal year, to reduce our operating expenses by a minimum of ten percent, and we achieved these efficiencies without impairing our ability to grow the business,” he continued. “As we continue to maintain a disciplined approach to managing our costs, we believe we can further demonstrate the operating leverage inherent in our business model, and plan to grow revenue at a higher rate than discretionary costs.”
“We are also pleased with the improvement in Mad Catz’s fiscal year-end balance sheet, reflecting our strong financial results and operating discipline for the year, as we lowered our bank loan balance net of cash by nearly 85%, and reduced inventories by nearly 5%, compared to the respective balances at March 31, 2009.”
Xbox 360 and PC accessories were the primary drivers for Mad Catz's revenue, accounting for 31% and 22% of overall sales. Controllers represented 28% of overall sales, with specialty controllers and general accessories following closely behind with 24% each. Product highlights included the Super Street Fighter IV-branded FightPads and FightSticks, the Saitek Pro Flight X-65F Stick for PC, and the Eclipse Wireless litetouch Keyboard.
“Our top priority in fiscal 2010 was positioning Mad Catz to emerge from the severe economic downturn as a far stronger Company, while continuing to invest in areas and activities that position Mad Catz to drive top and bottom-line growth in the quarters to come,” said Richardson. “Despite the many challenges we faced during the year, we accomplished our primary goal and our focus for fiscal 2011 is on achieving further top-line growth and improved profitability even as our business continues to face the challenges of the global economy – in particular, the impact of the strength of the U.S. Dollar.”
Heading into the next fiscal year, MadCatz has signed a multi-year licensing agreement with Harmonix to serve as the primary peripherals provider for the Rock Band franchise. The company agreed to an extension with Activision allowing them to create Call of Duty: Black Ops accessories, and signed a license agreement with Major League Gaming to create high-end controllers. In addition, Mad Catz acquired Tritton Technologies, designer of premier gaming audio headsets.
“With these and other new product offerings in combination with our strengthened balance sheet, we are excited about our opportunities in fiscal 2011,” concluded Richardson.
