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Revenues fall at Mad Catz

But videogame accessories maker also cuts costs as losses decrease in Q2 2010

Videogame accessories firm Mad Catz, which also owns the Saitek and Joytech brands, has reported a drop in revenues across the US and European markets, although a decrease in operating expenses has seen losses reduced year-on-year.

Total net sales stood at USD 21.6 million for the three months to the end of September 30, 2009, down 16.1 per cent from the previous year.

Sales in North America were down 18 per cent (made up of a 19.6 per cent decline in the US and a 55 per cent rise in Canada), while sales in Europe were down 14.6 per cent.

However, the company also cut costs significantly, with total operating expenses down 18.8 per cent to USD 6.9 million, which meant that operating losses were reduced from USD 800,000 last year to USD 200,000 this year.

"Fiscal second quarter net sales levels principally reflect three key dynamics," explained president and CEO Darren Richardson. "First, the beginning of the ramp in holiday ordering by our customers, which we typically experience at the end of September, was delayed this year until late October.

"Second, against the backdrop of overall industry sluggishness leading up to the hardware price cuts late in the quarter, we had a particularly challenging year-over-year comparison relating to our products for Nintendo's Wii, with no significant new product placements in the fiscal second quarter of 2010 compared to strong sales of Wii Fit and power accessories in the same period last year.

"Third, our sales in Europe were again significantly impacted by foreign exchange fluctuations relative to the second quarter of fiscal 2009."

In total the company saw modest rises on accessories for the PC and PlayStation 3 platforms, a strong jump for the Xbox 360 platform and a significant decline for the Wii and other platforms.

The company's share price was up 4.6 per cent yesterday to close at 46 cents.

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Phil Elliott

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