Madcatz (MCZ) Q1 09 Results

By: ispeculatornew
Date posted: 08.28.2008 (6:00 pm) | Write a Comment  (0 Comments)

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MCZ – Madcatz Interactive (AMEX) – (Closing Price $0.76)

Madcatz reported its fiscal 2009 first quarter results on August 19 and reported decent numbers.

The company came in with revenue of 23.23 million and diluted earnings per share of -0.01. Revenue improved 6.2% sequentially and 59% year over year. However, without the revenue from the Saitek acquisition (7.5 million during the quarter) revenue would have been up only 7.9% over last year. EPS improved a penny from the prior quarter but was down a penny from last year. Gross profit, which has been a focus for Madcatz, improved both sequentially and year over year. It is interesting to note that Madcatz showed sequential improvement in revenue and EPS even though Q1 is its slowest quarter.

Looking ahead the company expects strong sells from its Wii Fit and Rock Band Products. The company also expects to roll out several established and newly acquired licensed products and peripherals through the remainder of the year.

The stock price of Madcatz has traded up since Q1 earnings were released and I expect the stock price to continue to trend up in anticipation of the holiday season and stronger quarters ahead. I would continue to hold your shares. (I have already given a buy recommendation at a lower price and I am no longer going to give a recommendation to average up with my stock picks. I do still consider Madcatz a buy however.)

Disclaimer: I do not have a position in Madcatz.

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