Mad Catz records $1.36 million loss
Bottom line falls despite a 53% rise in revenue for the peripherals company
Peripherals manufacturer Mad Catz has announced its fiscal 2009 second quarter results with an overall loss of USD 1.24 million, compared to a profit in the same period last year of USD 872,000.
That's despite a strong increase in company revenues which hit a record USD 25.8 million - up 52.8 per cent on last year's USD 16.9 million, largely thanks to the acquisitions of Saitek and Joytech.
Much of the loss can be attributed to a sharp rise in "selling, general and administrative expenses," which totalled USD 7.5 million this year - more than double last year's USD 3.4 million.
Additionally research and development expenses were up from USD 300,000 last year to USD 500,000 this year.
Darren Richardson, president and CEO of Mad Catz, commented: "While there is still progress to be made to improve our SG&A cost structure, and undoubtedly the overall outlook for consumer spending is concerning, we remain firmly committed to leverage our strong product portfolio and global distribution network to continue to grow revenue, earnings, cash flow and shareholder value."