Mad Catz Interactive announced financial results for the fiscal 2016 fourth quarter and full year ended March 31, 2016.
Article continues below
Q4 net sales increased 4% over the prior year fourth quarter to $17.1 million, driven by a 57% increase in net sales to the Americas and a 7% increase in net sales to APAC, partially offset by a 30% decrease in net sales to EMEA.
Gross margin declined to (5.1%) from 23.4% in the prior year quarter, driven by $6.8 million of charges related to Rock Band 4 for inventory write-downs, material authorizations and price reductions with retailers.
Total operating expenses increased 36% from the prior year period to $8.4 million, including $3.0 million for severance and restructuring costs.
Operating loss was ($9.3 million), compared to ($2.3 million) in the prior year.
Diluted net loss per share was ($0.10), compared to diluted net income per share of $0.09 in the prior year.
Net position of bank loans, less cash and restricted cash, was $13.0 million at March 31, 2016, compared to $17.7 million at December 31, 2015 and $2.8 million at March 31, 2015.
The company completed restructuring plan focused on lowering operating costs, increasing efficiencies and better aligning the Company’s resources with its needs and goals, with the expectation of generating annualized net savings of $6 million to $7 million starting in the first quarter of Fiscal 2017; and,
Key financial highlights of fiscal 2016:
Fiscal 2016 net sales increased 55% over the prior year to $134.1 million, driven by a 215% increase in net sales to the Americas, partially offset by a 17% decrease in net sales to EMEA and 35% decrease in net sales in APAC.
Gross margin was 16.7%, compared to 27.7% in Fiscal 2015.
Total operating expenses in Fiscal 2016 increased 25% year-over-year to $31.8 million.
Operating loss for Fiscal 2016 was ($9.4 million), compared to an operating loss of ($1.6 million) for the prior year; and,
Diluted net loss per share in Fiscal 2016 was ($0.16), compared to diluted net income per share of $0.07 in the prior year. ■