Mad Catz Q2 revs jump, losses mount
Peripheral manufacturer sees sales grow 53 percent thanks to increased current-gen accessory adoption, but earnings take plunge into the red.
Software and hardware may receive the lion's share of attention, but gaming accessories are experiencing their own boom as the industry continues its (mostly) steady march toward double-digit year-over-year growth. As one of the largest accessory-oriented companies serving the gaming industry, Mad Catz is pulling in scratch hand over paw.
Reporting its second-quarter results this week, the peripherals manufacturer said that revenues for the July-September period had spiked 53 percent from a year ago, to $25.8 million. As a result, Mad Catz realized company-best gross-profit margins, which rose 56 percent to $7.7 million. Nevertheless, net income remained in the red, with the peripheral company's losses totaling $1.3 million. That negative growth can be attributed in large part to expenditures in marketing, sales, and general administration costs.
Mad Catz called out a number of factors that led to its sales windfall during the quarter. Current-generation accessories--that is, peripherals created for the Xbox 360, PlayStation 3, and Wii--now amount to 42 percent of the company's total sales, and surpassed revenue generated by products for the previous generation of consoles.
Although the rhythm genre may be showing signs of consumer fatigue, Mad Catz also touted the fact that it had begun shipping the Fender Precision Bass guitar for the Xbox 360. During the quarter, Mad Catz also said that it had entered into a licensing agreement with Nintendo to create a line of Rock Band peripherals for the Wii.
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