Mad Catz Reports Higher Earnings in Fiscal 2005 Second Quarter
Thursday November 4, 6:30 am ET
Strong Gross Margin and Reduced Operating Expenses Continue in the Second Quarter
SAN DIEGO--(BUSINESS WIRE)--Nov. 4, 2004--
Conference Call: Today, November 4, at 11:00 a.m. ET
Dial-in numbers: 888/391-0233 (US and CAN) or
212/676-5395 (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 fiscal second quarter and the six-month period ended September 30, 2004.
Net sales for the second quarter ended September 30, 2004 were $20.7 million, a decrease of 2.9% from net sales of $21.3 million during the fiscal 2004 second quarter. Gross profit for the quarter was $5.2 million as compared to $5.3 million, in the same period of the prior year. Gross profit margin for the fiscal 2005 second quarter was 25.3%, compared to 25.1% in the fiscal 2004 second quarter. Selling and administrative expenses for the second quarter of fiscal 2005 were $4.0 million, a decrease of 8.5% from $4.3 million in the same period of the prior year. Selling expenses in the fiscal 2005 second quarter decreased 5.0% to $2.3 million, or 11.3% of net sales, from $2.4 million, or 11.5% of net sales in the prior year second quarter. For the quarter ended September 30, 2004, administrative expenses were $1.6 million, a 13.0% decrease from $1.9 million in the same period of the prior year. The reduction in administrative expenses reflects the consolidation of the Company's Toronto corporate office with its San Diego headquarters in the fiscal 2004 fourth quarter, as well as the benefits of cost saving measures initiated in the fiscal 2004 fourth quarter and during the first two quarters of fiscal 2005. Income before taxes for the quarter ended September 30, 2004 was $0.5 million, compared to income before taxes of $0.4 million in the prior year second quarter. For the quarter ended September 30, 2004, the Company reported net income of $0.3 million, or $0.01 per basic and diluted share, compared to net income of $0.2 million, or $0.00 per basic and diluted share in the same period of the prior year. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the quarter ended September 30, 2004 was $1.2 million, compared to EBITDA of $1.0 million in the quarter ended September 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.
Net sales for the six months ended September 30, 2004 were $37.4 million, a 4.4% decrease from $39.1 million in the same period of the prior year. Gross profit for the six-month period increased 11.4% to $9.5 million from $8.6 million in the first six months of fiscal 2004. Selling and administrative expenses for the first half of fiscal 2005 were $7.7 million, a decrease of 12.4% from $8.8 million in the first half of fiscal 2004. Selling expenses decreased to $4.4 million or 11.8% of net sales for the six months ended September 30, 2004 from $5.2 million or 13.2% of net sales in the same period of the prior year. Administrative expenses were $3.3 million or 8.9% of net sales for the first half of fiscal 2005, compared to $3.7 million or 9.4% of net sales in the first half of fiscal 2004. Income before taxes for the first six months of fiscal 2005 was $0.1 million versus a loss before taxes of $1.8 million in the first six months of fiscal 2004. The Company reported a net loss for the first half of fiscal 2005 of $0.1 million or $0.00 per basic and diluted share, compared to a net loss of $1.1 million or $0.02 per basic and diluted share for the first half of fiscal 2004. For the six months ended September 30, 2004, EBITDA was $1.5 million compared to a negative EBITDA of $0.5 million in the same period of the prior year.
Fiscal 2005 Second Quarter Highlights:
United States sales were up 5.8% to $16.8 million from $15.9 million.
European sales were up 83.6% to $2.1 million from $1.2 million.
Gross profit margin was strong at 25.3%.
Continued cost containment efforts resulted in lower year-over-year operating expenses.
Net income increased 49.6% to $0.3 million.
GameShark and Xploder game enhancement software sales accounted for 12.3% of gross sales for the quarter.
The Company's $35.0 million asset based credit facility with Congress Financial was renewed through September 25, 2005.
Announced lineup of accessories for the new Nintendo DS (now shipping) and Apple Computer's iPod ® and iPod Mini® digital music players (shipping early 2005).
New product introductions:
Mad Catz LiveCon Controllers for Xbox Live.
GameShark2 Game Codes with Media Player for PlayStation 2.
Starter Kits featuring GameShark Lite for PS2, Xbox and GameCube.
Disc Repair Kit for game discs, DVD's and CD's. |
