Mad Catz Reports Improved Operating Results in Fiscal 2005 First Quarter
Thursday August 12, 7:00 am ET
Gross Profit Improvements and Reduced Operating Expenses Lead to Improved Quarterly Results
SAN DIEGO--(BUSINESS WIRE)--Aug. 12, 2004--Mad Catz Interactive, Inc. ("Mad Catz") (AMEX/TSX: MCZ)
Conference Call: Today, August 12, at 11:00 a.m. EDT
Dial-in numbers: 888/391-0235 (US and CAN)
or 212/676-4904 (International)
Webcast: www.madcatz.com (Select "Investors")
Replay Information: See release text
Mad Catz Interactive, Inc. ("Mad Catz") (AMEX/TSX: MCZ), the world's leading third party video game accessory provider, today announced financial results for the three-month period ended June 30, 2004.
Net sales for the quarter ended June 30, 2004 were $16.7 million, a 6.1% decline from net sales of $17.8 million during fiscal 2004 first quarter, primarily due to slow industry sales in the European market and the shift of sales from the first to second fiscal quarter in the United States as consumers delayed hardware purchases in anticipation of the PlayStation 2 console price cut that came late in the first quarter. Gross profit for the quarter increased 34.0% to $4.3 million from $3.2 million, in the same period a year ago. Gross profit margin for the fiscal 2005 first quarter was 25.8%, an increase from 18.0% in the fiscal 2004 first quarter. This improvement over the prior year first quarter is attributable to favorable manufacturing margins in the current quarter, reduced price protection costs and a favorable comparison to the higher than usual return and repackaging expenses which impacted the fiscal 2004 first quarter. Selling expenses in the fiscal 2005 first quarter decreased 22.4% to $2.1 million, or 12.6% of net sales, from $2.7 million, or 15.2% of net sales, in the prior year. The decrease in selling expense is primarily attributable to the reduced cost of Mad Catz' presence at the E3 trade show this year and the reduction in expenses directly related to the lower sales levels during the quarter. For the quarter ended June 30, 2004, administrative expenses were $1.7 million, a 6.9% decrease from $1.8 million in the same period a year ago. The reduction in administrative expenses relates to the previously announced consolidation of the Company's Toronto corporate office with its San Diego headquarters as well as additional cost saving measures that were initiated in the fiscal 2004 fourth quarter. The loss before taxes for the quarter ended June 30, 2004 was $0.4 million, an 81.4% improvement from the loss before taxes of $2.2 million in the prior year first quarter. For the quarter ended June 30, 2004, the Company reported a net loss of $0.3 million, or $0.01 per basic and diluted share, compared to a net loss of $1.3 million, or $0.02 per basic and diluted share, in the same period a year ago. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter ended June 30, 2004 was $0.3 million compared to a negative EBITDA of $1.5 million in the quarter ended June 30, 2003. A reconciliation of EBITDA to the Company's net income on a GAAP basis is included in the financial tables accompanying this release. |
