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News Mad Catz executives resign ahead of earnings report

Discussion in 'Article Discussion' started by Gareth Halfacree, 9 Feb 2016.

  1. Gareth Halfacree

    Gareth Halfacree WIIGII! Lover of bit-tech Administrator Super Moderator Moderator

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    Gareth Halfacree, 9 Feb 2016
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  2. graphitone

    graphitone What's a Dremel?

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    Interesting read...

    I've never used any madcatz peripheral, though have heard that things have deteriorated in recent years with quality control. Can anyone confirm this? I seem to recall them being lauded way back when in the days of Street Fighter 2 as the db's controllers.
     
    graphitone, 9 Feb 2016
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  3. jewelie

    jewelie Ancient geek, newbie to BT

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    From back to the PS2 days I thought they were considered pretty naff?
     
    jewelie, 9 Feb 2016
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  4. edzieba

    edzieba Virtual Realist

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    MadCatz own the Saitek brand, so I'm surprised the sudden resurgence of space sims and the incredible demand for the X52 and X55 sticks (to the point there was about a year where everywhere was out of stock and stores sold out within minutes of shipments arriving) wasn't giving them a tidy profit bgivin the huge retail markup on the relatively basic plastic HOTAS (the X52 is old enough that injection mould costs have long ago been amortised).
     
    edzieba, 9 Feb 2016
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  5. graphitone

    graphitone What's a Dremel?

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    From having a quick browse of a few other forums, t'would appear that the fight sticks are generally ok, albeit overpriced, but other peripherals lack build quality.
     
    graphitone, 9 Feb 2016
    #5
  6. TAG

    TAG What's a Dremel?

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    I'm still pissed @ them for never giving us drivers for the mighty PantherXL
     
    TAG, 9 Feb 2016
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  7. Parge

    Parge the worst Super Moderator

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    Given the fact that they can't make a product that last more than five minutes, this comes as no great surprise. Hopefully this will put the kybosh on the Star Citizen HOTAS deal too, and someone like Logitech can pick it up.
     
    Parge, 9 Feb 2016
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  8. SexyHyde

    SexyHyde Minimodder

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    They were bomb proof before, I had a controller that I used for a few years, then gave to my brother who used to rage smash it daily. It worked up until he gave up gaming. They got bought by another company and quality dropped off over night, it was quite shocking.
     
    SexyHyde, 10 Feb 2016
    #8
  9. Gareth Halfacree

    Gareth Halfacree WIIGII! Lover of bit-tech Administrator Super Moderator Moderator

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    Okay, the figures are through. Interestingly, things start off promisingly: 114 per cent increase in net sales for the third quarter, which at $65 million was the company's second-highest ever; 391 per cent increase in sales to the Americas, and a 28 per cent increase in operating income.

    'But Gareth,' I pretend you ask, 'why would the executives leave on those kind of figures?'

    Well, it may have something to do with a 56 per cent decrease in APAC and 6 per cent decrease in EMEA sales. Alternatively, perhaps the drop in profit margin from 26.9 per cent to just 17.5 per cent had something to do with it. More likely, the increase in operating expense by 44 per cent was to blame: the company spent $8.6 million while its operating income was only $2.8 million.

    In short: its debts are growing. In December 2014, the company owed $10.7 million more than the cash it had to-hand; in September 2015, that had grown to $12.7 million; as of December 2015, it owed $17.7 million.

    The solution? Restructuring, naturally, 'focused on lowering operating costs, increasing efficiencies and better aligning its workforce with the needs of the business.' That means firing 37 per cent of its global workforce, taking on a $3 million restructuring charge, but aiming to save $5 million a year by 2017.

    Other interesting takeaways: the bulk of the company's sales are in next-gen consoles at 79 per cent for the quarter to 14 per cent for PC - a reversal on the same period last year, when it was 21 per cent console and 43 per cent PC; its majority sales come from 'speciality controllers' at 72 per cent followed by audio gear at 16 per cent. Mice and keyboard sales have taken a nosedive year-on-year: this quarter was 6 per cent of total sales, compared to 23 per cent the year prior. Most of its sales are made under the Mad Catz brand at 78 per cent, followed by Tritton at 15 per cent and Saitek at 6 per cent - a year-on-year drop from 17 per cent.
     
    Gareth Halfacree, 10 Feb 2016
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