Mad Catz Interactive (MCZ) Gains 40% AH On Strong Earnings Report

Mad Catz Interactive Inc. (MCZ) gains 40% in extended trading. The co. said late Wednesday that its quarterly earnings for its third quarter ended December 31, 2010 came in at $9.7 million, or $0.15 per diluted share (a 73.4% rise in net income), compared with net income of $5.6 million, or $0.09 per diluted share a year ago. For the quarter Mad Catz generated net sales of $93 million, the highest quarterly sales in the co.’s history. Mad Catz also reported Q3 adjusted EPS, which excludes impact of amortization of intangibles, stock-based compensation and goodwill impairment, of $10.2 million and $0.16 versus $6.2 million and $0.10, respectively, in the prior year quarter.

In the fiscal 2011 nine-month period ended December 31, 2010, the company said it generated record net sales of $150.3 million, a 62.0% increase from the $92.7 million in the first nine months of the prior fiscal year.

Commenting on the results, Darren Richardson, President and CEO of Mad Catz, said “Reflecting the excellent fiscal third quarter retail sell-in of our range of products, we ended the quarter with $9.9 million of cash, $51.2 million of accounts receivable, $32.5 million of inventories and accounts payable of $55.3 million, including the outstanding balance under our bank loan. We expect significant improvements in our fiscal 2011 year-end balance sheet, including a positive cash position net of bank borrowings, and believe our strengthened balance sheet will allow us the financial flexibility to further grow sales, earnings and free cash flow while pursuing other means to enhance shareholder value.”

At last check, MCZ was up 33c, or 29.46%, to $1.45.

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