MCZ - Sector: Technology---Industry: Computer Peripherals

[setravis]

"MCZ" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders.                    
All history on a stock pick in 1 thread is awesome.                    
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock.
Thank You....and good luck with all your trades....make some $$$           
   

[Draak]

http://www.engadget.com/2007/01/14/mad-catz-readying-its-own-wiimote-nunchuck/

[Draak]

Next break North after consolidation. Industry sales up %25 over the board in 2006 over the previous year.

[Draak]

$0.82 resistance looking ever closer. Global hardware, software sales from all major providers showing high increases in sales.

One for the radar. Low volume on Friday. With no sellers.

[Draak]

CC coming. Gears of war Top seller. Speculation coming into CC will take this far higher.

Revenues should touch 50 million +.

Wii 2  controller coming online from MCZ.

No resistance above with large buying on level 2.

PS3 controllers also coming on line. PS3 released in Europe in March.

DD!

[Draak]

Best CC in history coming into growth year.

Mad Catz Interactive, Inc. ("Mad Catz") (AMEX/TSX: MCZ), a leading worldwide third party video game accessory provider, today announced financial results for the three-month period ended December 31, 2006, the Company's fiscal 2007 third quarter.

Net sales for the quarter ended December 31, 2006 were $36.5 million, a decrease of 19.0% from net sales of $45.0 million during the prior year third quarter. Gross profit for the quarter increased 57.2% to $10.5 million from $6.7 million in the same period a year ago. Gross profit margin in the fiscal 2007 third quarter was 28.7% compared to 14.8% in the fiscal 2006 third quarter. Net income for the quarter ended December 31, 2006 was $3.7 million, or $0.07 per basic and diluted share, compared to $0.0 million, or $0.00 per basic and diluted share, in the prior year fiscal third quarter. EBITDA, a non-GAAP measure (defined as earnings before interest, taxes, depreciation and amortization), for the quarter ended December 31, 2006 was $6.2 million compared to negative EBITDA of $0.1 million for the quarter ended December 31, 2005. A reconciliation of EBITDA to the Company's net income on a GAAP basis is included in the financial tables accompanying this release.

Net sales for the nine-month period ended December 31, 2006 were $80.4 million, a decrease of 3.8% from $83.5 million in the same nine-month period of the prior fiscal year. Net income for the nine months ended December 31, 2006 was $3.0 million or $0.06 per basic and diluted share, compared to net loss of $3.3 million or $(0.06) per basic and diluted share, for the nine months ended December 31, 2005. EBITDA for the nine months ended December 31, 2006 was $7.0 million compared to negative EBITDA of $3.0 million in the same period of the prior fiscal year.

Fiscal 2007 Third Quarter Highlights:

Achieved record gross margin of 28.7%, up from 14.8% in the same quarter of the prior year, while gross profit improved to $10.5 million from $6.7 million in the prior year, an increase of 57.2%;
EBITDA rose to $6.2 million compared to negative EBITDA in the year-ago period;
Reduced total operating expenses to 13.7% of net sales in the fiscal 2007 third quarter from 15.1% in comparable prior year period;
Strengthened balance sheet as inventory was reduced by $6.8 million (34.2%) and net bank debt (outstanding debt less cash) was reduced by $11.4 million (51.9%) from the same period in fiscal 2006;
Shipped Gears of War® themed faceplates, Console Skinz(TM) and Console Crates(TM) to coincide with the launch of one of the best selling titles of the 2006 holiday season;
Introduced a range of accessories for Sony's PlayStation® 3 console and Nintendo's Wii(TM) console;
Launched Arcade GameStick(TM) for Xbox Live Arcade, Xbox 360(TM)and PC, bundled with three full Xbox Live Arcade games: Frogger®, Time Pilot® and Astropop®;
Acquired INAIR Personal Sound Technology - a development-stage technology which we believe has the potential to revolutionize headphone listening; and
Named Stewart Halpern, a finance, video game and entertainment industry executive with 25 years of experience, Chief Financial Officer.

[usedcasting]

Holding it's gains. Nice volume.
Agreement has come in with Microsoft. 

http://biz.yahoo.com/bw/070511/20070511005113.html?.v=1

uc.

[Draak]

There she goe's.

[usedcasting]

Can MCZ break out of the long term resistance.
Another good day today.

uc.

[Ramsburg]

Just to add this to this thread:

David's Video Analysis on MCZ last week (rating 9 out of 10):

A video Analysis from 3StocksOnFire.org

[usedcasting]

Earning's out after the bell today. I noticed we are at a golden cross (interesting timing). Halo3 comes out early September and Mcatz will be supplying the optional faceplates. I am long on this and it does look like it pretty good entry having come down to long term support. Some volume came in at the end of the day yesterday so it should be interesting to see.

uc.

[la-onda]

Mad Catz Reports First Quarter Fiscal 2008 Results
Tuesday , August 14, 2007 16:00ET

SAN DIEGO, Aug 14, 2007 (BUSINESS WIRE) -- Mad Catz Interactive, Inc. ("Mad Catz" or "the Company") (AMEX/TSX: MCZ), a leading worldwide provider of third-party video game peripherals, today announced financial results for the fiscal 2008 first quarter ended June 30, 2007.

Net sales for the fiscal first quarter ended June 30, 2007 were $14.6 million, a 19.6% decrease from $18.1 million in the fiscal 2007 first quarter. Gross profit for the quarter increased 31.9% to $4.7 million from $3.5 million in the prior year first quarter. Gross profit margin for first quarter of fiscal 2008 was a record 32.1% compared to 19.6% in fiscal 2007 first quarter. Net loss for the quarter ended June 30, 2007 was $0.2 million, or break-even on a per share basis, compared to a net loss of $0.9 million, or $(0.02) per share, for the quarter ended June 30, 2006. EBITDA, a non-GAAP measure (defined as earnings before interest, taxes, depreciation and amortization), was $0.4 million in fiscal 2008 first quarter compared to EBITDA of negative $0.4 million in fiscal 2007 first quarter. A reconciliation of EBITDA to the Company's net loss on a U.S. GAAP basis is included in the financial tables accompanying this release.

Sales and marketing expenses in the fiscal 2008 first quarter were $1.7 million, or 11.9% of net sales, compared with $2.5 million, or 14.0% of net sales, in the same prior year period. For the quarter ended June 30, 2007, general and administrative expenses were $2.8 million, a 44.3% increase from $1.9 million in the prior year period. Research and development expenses increased to $0.3 million during the first quarter of fiscal 2008 compared with $0.2 million in the same quarter of fiscal 2007. The loss before income taxes for the quarter ended June 30, 2007 was $0.1 million, as compared to the loss before income taxes of $1.2 million in the prior year first quarter.

Fiscal 2008 First Quarter Highlights:

-- Operating loss in this seasonally slowest quarter narrowed from $1.2 million in Q1 '07 to a first quarter record of $0.2 million in Q1 '08;

-- Achieved record quarterly gross margin of 32.1%;

-- EBITDA rose to $0.4 million compared to a negative EBITDA of $0.4 million in Q1 '07;

-- Continued geographic diversification as European sales rose 69.4% from year ago levels to $4.2 million reflecting increased demand for new console products as well as increased sales to several key customers;

-- Increased penetration into the current generation console marketplace as sales of products and related accessories for Xbox 360(TM), Playstation(R) 3 and Wii(TM) accounted for 46% of the Company's net sales as compared to 11% in the prior year period and 39% in the fourth quarter of fiscal 2007;

-- Continued efforts to maintain strong balance sheet as net working capital increased to $14.6 million from $5.5 million (165%), net debt (outstanding bank debt less cash) was reduced by $10.7 million (97%) and inventory was further reduced by $0.3 million (2%) from the same period in fiscal 2007;

-- Continued to align current and upcoming Mad Catz products with professional sports leagues and highly-anticipated software releases:

       -- Entered into license agreements with Microsoft and
          Bioware(R) to produce a new line of customized accessories
          to support the highly-anticipated upcoming launches of
          Halo(R) 3 and Mass Effect(TM) video games;
       -- Entered into a license agreement with Ubisoft to produce a
          new line of customized accessories to support the
          highly-anticipated upcoming launches of Assassin's Creed(TM)
          and Tom Clancy's Splinter Cell Conviction(TM) video games;
       -- Entered into a license agreement with the National Hockey
          League ("NHL") to produce branded controllers and related
          accessories; and,
       -- Renewed and/or expanded license agreements with the major
          sports leagues including the National Football League
          ("NFL"), National Basketball Association ("NBA") and Major
          League Baseball ("MLB").


Commenting on the results, Darren Richardson, Mad Catz' President and CEO, stated, "During the first quarter, Mad Catz continued to see the benefits of our initiatives to add higher margin products and selectively eliminate existing products while improving operating efficiencies. Despite the fact that year-over-year net sales decreased due to contributions from Real World Golf sales in the prior year first quarter and ongoing effects of the console transition, we were able to achieve record gross margin levels of over 32% fueled by the continued elimination of select low margin product placements, lower inventory levels and decreased distribution costs. As a result of our improved operating efficiencies we were able to make meaningful progress toward profitability during what is seasonally our slowest quarter, and posted break-even EPS versus a $0.02 per share loss in the year-ago period.

"In addition to our progress over the past several quarters in driving operating efficiencies, we've also developed and acquired rights to an entertaining and diverse set of upcoming products. Mad Catz now has license agreements in place to create customized products and accessories for attractive brands including each of the four major sports leagues as well as agreements to produce accessories to accompany the launches of some of the most highly-anticipated software titles of the upcoming holiday season including Halo 3, Mass Effect, Assassin's Creed and Tom Clancy's Splinter Cell Conviction. In addition to these entertainment and sports licenses, we are diversifying our product offerings via adjacent categories and we plan to launch our proprietary AirDrives personal audio hybrid earphones utilizing the InAir(TM) Technology this fall. We are very excited by the prospects for this innovative technology as it creates a unique opportunity for listeners to integrate music into their every day activities, eliminating the need to choose between music and social interaction. Further, a recent study conducted by the San Diego Hearing Center demonstrates that AirDrives are the first earphones approved for all-day listening in accordance with House Ear Institute and Occupational Health & Safety Administration (OHSA) standards. We believe these health and safety benefits augment AirDrives' distinctive appeal."

Mr. Richardson concluded, "With our seasonally slowest quarter now behind us, the benefit of a broad portfolio of licensed brands and continued penetration into the current generation console marketplace, Mad Catz is poised to enter what will be an important holiday season. We are entering this period with improved levels of operational and working capital efficiency as well as early sales momentum of products and accessories for the current generation consoles. While we will continue to feel the effects of a difficult operating environment related to the prior generation of consoles, we believe we are well-positioned to take advantage of the opportunities ahead as the installed base of current generation consoles continues to grow. We are also continuing our ongoing efforts to expand our portfolio of relevant licenses, broaden our offerings into adjacent product categories and develop attractive hardware-software bundles, and we look forward to reporting our progress on these efforts as we seek to increase shareholder value throughout the remainder of the fiscal year."

[la-onda]

Mad Catz Acquires Joytech(R) Assets from Take-Two Interactive Software, Inc.
Friday September 7, 8:45 am ET
Acquisition to Strengthen Mad Catz' European Market Position

SAN DIEGO--(BUSINESS WIRE)--Mad Catz Interactive, Inc. (AMEX/TSX: MCZ), a leading third-party interactive entertainment accessory provider, announced today that, consistent with its strategy to further diversify Mad Catz' products and geographic distribution capabilities, it has acquired assets and assumed certain liabilities of Joytech from Take-Two Interactive Software, Inc. (NASDAQ: TTWO - News) for approximately $3.7 million.
Joytech manufactures third-party video game peripherals and audiovisual accessories with retail distribution in Europe and North America. The addition of Joytech personnel will allow Mad Catz to initiate a European product development effort and bolster Mad Catz' sales team. The European market has been a key growth driver for Mad Catz and this acquisition reinforces that strategic initiative.

Mad Catz anticipates that the acquisition will add at least $10 million in annual revenue, leverage Mad Catz' existing infrastructure, add several new customers and products and expects the acquisition to be accretive within the first year of completion. The Company intends to finance the acquisition through a combination of cash on hand and borrowings under its existing credit facility.

Commenting on the transaction, Darren Richardson, President and Chief Executive Officer of Mad Catz, said, "This transaction is consistent with our strategy to continue to grow profitably, in part by diversifying our product line-up and geographic reach. Joytech's strong presence in Europe and growing presence in North America are expected to complement our current operations and further enhance our worldwide distribution network enabling Mad Catz to more efficiently deliver a larger portfolio of innovative gaming accessories to our customers worldwide.

"We remain committed to pursuing additional acquisition opportunities that can enhance shareholder value by leveraging our existing operating platform, further diversifying Mad Catz' product offerings and market reach, and solidifying our role as a market leader throughout the current console transition and beyond."

[la-onda]

a good deal imho 

setravis, David or other board members any comments from your side?

[la-onda]

fyi:
Bullish Video-Game Forecast

Wedbush Morgan Securities

WE EXPECT AUGUST U.S. RETAIL videogame console software sales data to be released after market close on Thursday, Sept. 13. We forecast sales of $445 million, up 12% compared to last year's $399 million.

Our estimate reflects $310 million in sales contribution from new platforms ([Sony's] PlayStation 3 (PS3), [Nintendo's] Wii, [Microsoft's] Xbox 360, [Sony's] PlayStation Portable (PSP) and [Nintendo's] DS) and current generation software sales of $135 million.

Sales growth over the last 12 months was a robust 16%, with last month up 11%. However, we expect more modest sales gains through the summer, as comparisons got tougher in June and remain tough until the holidays.

We estimate sell-through of 420,000 Wii, 240,000 Xbox 360, and 150,000 PS3 hardware systems. Our forecast assumes PlayStation 2 software sales of $107 million, down 31% compared to last year and much weaker than the last three month's average of -20%, but consistent with our full year projection.

We expect August sales to be driven by new releases: Electronic Arts' Madden NFL 08, Nintendo's Metroid Prime 3: Corruption, and Take Two's Bioshock along with continued sales of Activision's Guitar Hero Encore: Rocks the 80's Exp and Guitar Hero 2, Electronic Arts' NCAA Football 08, and Nintendo's Wii Play. We expect Xbox 360 hardware and software sales to increase over prior months due to the Xbox 360 price cuts.

We continue to expect contribution from next generation software sales to grow on a year over-year basis throughout 2007, more than offsetting modest declines in current generation software sales.

We expect major share price appreciation for the major video game publishers by the end of the year as investors gain confidence that the next generation console cycle is in full swing, and recommend that investors accumulate Activision, Electronic Arts, GameStop, THQ, and Ubisoft Entertainment shares at current levels.

Although we do not expect another PS3, PSP, or 360 price cut this year (nor one for the Wii), we think a cut for the PS2 or DS is possible. Any hardware price reduction could serve as a catalyst for sales growth later in the year.

We think that Sony's recent announcement of an IPO for its financial services unit (with an estimated $3 billion in proceeds) could forebode another PS3 price cut early next year. We believe that the company is interested in subsidizing sales of the console in order to stabilize its market share in the games market and grow its lead in the high-definition DVD market. We expect a price cut no later than April, likely to $399 for the 80-gigabyte model.

We expect PS2 software sales strength to persist throughout 2007, due to a blockbuster lineup of licensed movie-themed games released over the last few months, with year-over-year software sales declines of no more than 35%. We expect sales strength during the holidays with the release of the movie DVDs.

We expect software sales growth to remain at low-to-mid-teen rates in September (in spite of a 29% year-over-year comparison). Should we be right, we think that investors' concerns about a secular shift away from video games will subside, and we expect the U.S. publisher stocks to continue to appreciate.

chart: