Mad Catz Sees Losses, New Board Members

Videogame peripheral company Mad Catz has reported net losses and a drop in revenues for both its full fiscal year and fourth quarter; two new members added to board.

For the the year ended March 31, Mad Catz posted a net loss of $6.7 million compared to fiscal 2005's net income of $4.6 million. Net sales were down just over 10 percent to $100.8 million from $112.1 million in 2005.

Gross profit margin was also down for the company, from 25 to 13 percent.

For the fourth quarter, Mad Catz reported a net loss of $3.3 million compared to a net income of $900,000 for the same period 2005.

Net sales for Mad Catz' fourth quarter were down 21 percent, from $21.8 million to $17.2 million. Gross profit margin was a paltry 2.2 percent, compared to 24 percent.

President and CEO Darren Richardson blamed the console transition for the poor figures, calling fiscal 2006 "a difficult year for Mad Catz." The company plans to improve its sales and earnings by continuing to expand its European operations, a region which saw a 76 percent increase for the year.

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