Mad Catz Interactive, Inc. (MCZ) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $3.46 million, or $ 0.05 a share in the quarter, against a net profit of $1.22 million, or $0.02 a share in the last year period. Revenue during the quarter plunged 70.69 percent to $19.06 million from $65.04 million in the previous year period. Gross margin for the quarter contracted 1074 basis points over the previous year period to 6.79 percent. Operating margin for the quarter stood at negative 15.94 percent as compared to a positive 4.34 percent for the previous year period.
Operating loss for the quarter was $3.04 million, compared with an operating income of $2.82 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $2.03 million compared with $2.95 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 10.66 percent for the quarter compared to 4.54 percent in the last year period.
Karen McGinnis, president and chief executive officer of Mad Catz, added, "Overall, the fiscal 2017 third quarter was a period of positives and negatives for Mad Catz as we continue to build a foundation for future growth with exciting new products and improved distribution, particularly with a large national retailer in the U.S., while managing through ongoing working capital challenges, which resulted in product supply constraints and increased costs impacting profitability.
Operating cash flow remains negativeMad Catz Interactive, Inc. has spent $5.11 million cash to meet operating activities during the nine month period as against cash outgo of $11.84 million in the last year period. Cash flow from investing activities was $9.95 million for the nine month period as against cash outgo of $1.72 million in the last year period.
The company has spent $5.55 million cash to carry out financing activities during the nine month period as against cash inflow of $12.41 million in the last year period.
Cash and cash equivalents stood at $1.60 million as on Dec. 31, 2016, down 59.78 percent or $2.38 million from $3.99 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Mad Catz Interactive, Inc. was negative $10.98 million on Dec. 31, 2016 compared with negative $0.75 million on Dec. 31, 2015. Current ratio was at 0.73 as on Dec. 31, 2016, down from 0.99 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 13 days for the quarter from 20 days for the last year period. Days sales outstanding went up to 23 days for the quarter compared with 20 days for the same period last year.
Days inventory outstanding has increased to 40 days for the quarter compared with 24 days for the previous year period. At the same time, days payable outstanding went up to 50 days for the quarter from 24 for the same period last year.
Debt comes down significantly
Mad Catz Interactive, Inc. has recorded a decline in total debt over the last one year. It stood at $18.01 million as on Dec. 31, 2016, down 36.36 percent or $10.29 million from $28.30 million on Dec. 31, 2015. Total debt was 43.09 percent of total assets as on Dec. 31, 2016, compared with 33.97 percent on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
