Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Dec. 31, 2013 | Feb. 04, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'MCZ | ' |
Entity Registrant Name | 'MAD CATZ INTERACTIVE INC | ' |
Entity Central Index Key | '0001088162 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 63,931,506 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $3,540 | $2,773 |
Accounts receivable, net | 13,227 | 13,884 |
Other receivables | 2,637 | 1,374 |
Inventories | 20,604 | 23,795 |
Deferred tax assets | 239 | 257 |
Income tax receivable | ' | 344 |
Prepaid expenses and other current assets | 2,608 | 2,711 |
Total current assets | 42,855 | 45,138 |
Deferred tax assets | 379 | 370 |
Other assets | 436 | 359 |
Property and equipment, net | 2,728 | 2,977 |
Intangible assets, net | 3,131 | 3,679 |
Total assets | 49,529 | 52,523 |
Current liabilities: | ' | ' |
Bank loan | 14,632 | 8,888 |
Accounts payable | 13,276 | 15,573 |
Accrued liabilities | 6,241 | 6,652 |
Contingent consideration | 1,158 | 1,650 |
Income taxes payable | 423 | 258 |
Total current liabilities | 35,730 | 33,021 |
Contingent consideration | 1,155 | 2,214 |
Warrant liability | 159 | 149 |
Deferred tax liabilities | 155 | 152 |
Other long-term liabilities | 34 | 109 |
Total liabilities | 37,233 | 35,645 |
Shareholders' equity: | ' | ' |
Common stock, no par value, unlimited shares authorized; 63,931,506 and 63,477,399 shares issued and outstanding at December 31, 2013 and March 31, 2013, respectively | 60,791 | 60,102 |
Accumulated other comprehensive loss | -1,796 | -3,701 |
Accumulated deficit | -46,699 | -39,523 |
Total shareholders' equity | 12,296 | 16,878 |
Total liabilities and shareholders' equity | $49,529 | $52,523 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Common stock, par value | ' | ' |
Common stock, shares authorized | 'unlimited | 'unlimited |
Common stock, shares issued | 63,931,506 | 63,477,399 |
Common stock, shares outstanding | 63,931,506 | 63,477,399 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $32,889 | $45,019 | $69,412 | $98,056 |
Cost of sales | 24,964 | 32,116 | 51,352 | 69,891 |
Gross profit | 7,925 | 12,903 | 18,060 | 28,165 |
Operating expenses: | ' | ' | ' | ' |
Sales and marketing | 3,189 | 4,084 | 10,018 | 11,323 |
General and administrative | 2,655 | 3,042 | 8,903 | 8,818 |
Research and development | 1,062 | 1,080 | 3,240 | 3,318 |
Acquisition related items | -53 | 320 | 99 | 1,044 |
Amortization of intangible assets | 170 | 233 | 633 | 698 |
Total operating expenses | 7,023 | 8,759 | 22,893 | 25,201 |
Operating income (loss) | 902 | 4,144 | -4,833 | 2,964 |
Other (expense) income: | ' | ' | ' | ' |
Interest expense, net | -223 | -227 | -476 | -747 |
Foreign currency exchange (loss) gain, net | -292 | 5 | -708 | 11 |
Change in fair value of warrant liability | 324 | 273 | -10 | 343 |
Other income | 4 | 31 | 101 | 108 |
Total other (expense) income | -187 | 82 | -1,093 | -285 |
Income (loss) before income taxes | 715 | 4,226 | -5,926 | 2,679 |
Income tax expense | -1,281 | -1,099 | -1,250 | -1,719 |
Net (loss) income | ($566) | $3,127 | ($7,176) | $960 |
Basic net (loss) income per share | ($0.01) | $0.05 | ($0.11) | $0.02 |
Diluted net (loss) income per share | ($0.01) | $0.05 | ($0.11) | $0.01 |
Shares used in calculating basic net (loss) income per share | 63,931,506 | 63,477,399 | 63,700,413 | 63,469,217 |
Shares used in calculating diluted net (loss) income per share | 63,931,506 | 64,346,093 | 63,700,413 | 64,262,884 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net (loss) income | ($566) | $3,127 | ($7,176) | $960 |
Other comprehensive income (loss), before tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | 949 | 386 | 1,905 | -67 |
Total other comprehensive income (loss) | 949 | 386 | 1,905 | -67 |
Comprehensive income (loss) | $383 | $3,513 | ($5,271) | $893 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | ' | ' |
Net (loss) income | ($7,176) | $960 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | 2,017 | 2,304 |
Amortization of deferred financing fees | 26 | 100 |
Provision for deferred income taxes | 12 | 5 |
Loss on disposal or sale of assets | ' | 7 |
Stock-based compensation | 501 | 525 |
Contingent consideration, net of payments | -764 | 431 |
Change in fair value of warrant liability | 10 | -343 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 789 | -13,182 |
Other receivables | -1,009 | -672 |
Inventories | 3,833 | 4,436 |
Prepaid expenses and other current assets | 124 | -294 |
Other assets | -111 | 320 |
Accounts payable | -1,937 | 6,382 |
Accrued liabilities | -328 | 927 |
Income taxes receivable/payable | 612 | 720 |
Net cash (used in) provided by operating activities | -3,401 | 2,626 |
Investing activities: | ' | ' |
Purchases of property and equipment | -994 | -870 |
Purchases of intangible assets | -80 | ' |
Net cash used in investing activities | -1,074 | -870 |
Financing activities: | ' | ' |
Borrowings on bank loan | 57,535 | 65,350 |
Repayments on bank loan | -51,791 | -63,979 |
Payment of financing costs | -40 | -100 |
Payment of contingent consideration | -787 | -980 |
Proceeds from exercise of stock options | 188 | 7 |
Net cash provided by financing activities | 5,105 | 298 |
Effects of foreign currency exchange rate changes on cash | 137 | 3 |
Net increase in cash | 767 | 2,057 |
Cash, beginning of period | 2,773 | 2,474 |
Cash, end of period | 3,540 | 4,531 |
Supplemental cash flow information: | ' | ' |
Income taxes paid | 941 | 1,011 |
Interest paid | $397 | $602 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
(1) Basis of Presentation | |
Nature of Operations | |
Mad Catz Interactive, Inc. (“Mad Catz”) designs, manufactures (primarily through third parties in Asia), markets and distributes innovative interactive entertainment products marketed under its Mad Catz® (gaming), Tritton® (audio), and Saitek® (simulation) brands. Mad Catz products, which primarily include headsets, mice, keyboards, controllers, specialty controllers, and other accessories, cater to passionate gamers across multiple platforms including in-home gaming consoles, handheld gaming consoles, Windows® PC and Mac® computers, smart phones, tablets and other mobile devices. Mad Catz distributes its products through its online store as well as distribution via many leading retailers around the globe. Headquartered in San Diego, California, Mad Catz also maintains offices in Europe and Asia. | |
Basis of Accounting | |
The accompanying unaudited consolidated financial information has been prepared by management, in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. The consolidated balance sheet at March 31, 2013 was derived from the audited consolidated financial statements at that date; however, it does not include all disclosures required by accounting principles generally accepted in the United States (“U.S. GAAP”). | |
In the opinion of management, the unaudited consolidated financial statements for the interim period presented reflect all material adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial position and results of operations as of and for such periods indicated. These unaudited consolidated financial statements and notes hereto should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2013. These consolidated financial statements refer to the Company’s fiscal years ending March 31 as its “fiscal” years. The Company generates a substantial percentage of net sales in the last three months of every calendar year, its fiscal third quarter. Results for the interim periods presented herein are not necessarily indicative of results that may be reported for any other interim period or for the fiscal year ending March 31, 2014. | |
Principles of Consolidation | |
The accompanying unaudited consolidated financial statements include the accounts of Mad Catz and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. References to the “Company,” “we,” “us,” “our” and other similar words refer to Mad Catz Interactive, Inc. and its consolidated subsidiaries, unless the context suggests otherwise. | |
Use of Estimates | |
The unaudited consolidated financial statements have been prepared in conformity with U.S. GAAP. Applying these principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of sales and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates, including those related to asset impairments, reserves for accounts receivable and inventories, contingencies and litigation, valuation and recognition of share-based payments, the liability for contingent consideration, warrant liability and income taxes. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
(2) Fair Value Measurements | |||||||||||||||||
For a description of the fair value hierarchy, see Note 2 to the Company’s 2013 consolidated financial statements contained in the Company’s Annual Report on Form 10-K for its fiscal year ended March 31, 2013. | |||||||||||||||||
The following tables provide a summary of the recognized assets and liabilities carried at fair value on a recurring basis as of December 31, 2013 and March 31, 2013 (in thousands): | |||||||||||||||||
Basis of Fair Value Measurements | |||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Liabilities: | |||||||||||||||||
Contingent consideration (Note 3) | $ | (2,313 | ) | $ | — | $ | — | $ | (2,313 | ) | |||||||
Warrant liability (Note 5) | $ | (159 | ) | $ | — | $ | — | $ | (159 | ) | |||||||
Basis of Fair Value Measurements | |||||||||||||||||
March 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Liabilities: | |||||||||||||||||
Contingent consideration (Note 3) | $ | (3,864 | ) | $ | — | $ | — | $ | (3,864 | ) | |||||||
Warrant liability (Note 5) | $ | (149 | ) | $ | — | $ | — | $ | (149 | ) | |||||||
The following tables provide a roll forward of the Company’s level three fair value measurements during the nine months ended December 31, 2013, which consist of the Company’s contingent consideration liability and warrant liability (in thousands): | |||||||||||||||||
Contingent consideration: | |||||||||||||||||
Balance at March 31, 2013 | $ | (3,864 | ) | ||||||||||||||
Contingent consideration payment | 1,650 | ||||||||||||||||
Increases during the year – acquisition related expense | (99 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | (2,313 | ) | ||||||||||||||
Warrant liability: | |||||||||||||||||
Balance at March 31, 2013 | $ | (149 | ) | ||||||||||||||
Change in fair value of warrant liability | (10 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | (159 | ) | ||||||||||||||
Contingent_Consideration
Contingent Consideration | 9 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Contingent Consideration | ' |
(3) Contingent Consideration | |
In connection with the fiscal year 2011 acquisition of Tritton Technologies Inc. (“Tritton”), the Company has a contingent consideration arrangement that requires the Company to pay the former owners of Tritton additional consideration based on a percentage of sales of Tritton products over a five year period following the acquisition, subject to maximum annual amounts, up to an aggregate of $8.7 million. The fair value of the contingent consideration arrangement has been determined primarily by using the income approach and using a discount rate of approximately 13.2%. The amount paid for contingent consideration has been reduced by the amount of any working capital adjustment. The Company paid $1,650,000, $1,592,000, and $1,546,000 under this arrangement for fiscal 2013, 2012 and 2011, respectively. The remaining annual payments will be made in May of 2014 and 2015. | |
Fluctuations in the fair value of contingent consideration are impacted by unobservable inputs, most significantly estimated future sales of Tritton products and the estimated discount rate. Significant increases (decreases) in either of those inputs in isolation would result in a significantly higher (lower) fair value measurement. Generally, a change in the assumption used for estimated future sales of Tritton products is accompanied by a directionally similar change in the fair value of contingent consideration liability, whereas a change in assumption used for the estimated discount rate is accompanied by a directionally opposite change in the fair value of contingent consideration liability. | |
The Company assesses the estimated fair value of the contractual obligation to pay the contingent consideration on a quarterly basis and any changes in estimated fair value are recorded in ‘acquisition related items’ in the Company’s statement of operations. |
Inventories
Inventories | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
(4) Inventories | |||||||||
Inventories consist of the following (in thousands): | |||||||||
December 31, | March 31, | ||||||||
2013 | 2013 | ||||||||
Raw materials | $ | 805 | $ | 1,789 | |||||
Finished goods | 19,799 | 22,006 | |||||||
$ | 20,604 | $ | 23,795 | ||||||
Securities_Purchase_Agreement
Securities Purchase Agreement | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||
Securities Purchase Agreement | ' | ||||||||
(5) Securities Purchase Agreement | |||||||||
In April 2011, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with certain accredited investors, pursuant to which the Company sold (a) an aggregate of 6,352,293 shares of its common stock (the “Shares”) and (b) warrants to purchase an aggregate of 2,540,918 shares of common stock of the Company (“Warrants” and, together with the Shares, the “Securities”). On May 3, 2011 the Company filed a Registration Statement registering up to 8,893,211 common shares of the Company comprised of: (i) 6,352,293 common shares and (ii) 2,540,918 common shares issuable upon exercise of 2,540,918 warrants. The Securities were issued at a price equal to $1.92 for aggregate gross proceeds of approximately $12,196,000. The Warrants became exercisable on October 21, 2011 at a per share exercise price equal to $2.56. The Warrants contain provisions that adjust the exercise price in the event the Company pays stock dividends, effects stock splits or issues additional shares of common stock at a price per share less than the exercise price of the Warrants. The Warrants will remain exercisable until October 21, 2016. | |||||||||
Warrants with these reset features are accounted for as liabilities and carried at fair value, with changes in fair value included in net (loss) income until such time as the Warrants are exercised or expire. | |||||||||
The fair value of the Warrants increased from $149,000 as of March 31, 2013 to $159,000 as of December 31, 2013, which resulted in a $10,000 loss from the change in fair value of warrants for the nine months ended December 31, 2013. | |||||||||
These Warrants are not traded in an active securities market, and as such, the Company estimated the fair value of the Warrants using the Black-Scholes option pricing model using the following assumptions: | |||||||||
December 31, | March 31, | ||||||||
2013 | 2013 | ||||||||
Expected term | 2.75 years | 3.5 years | |||||||
Common stock market price | $ | 0.51 | $ | 0.38 | |||||
Risk-free interest rate | 0.68 | % | 0.46 | % | |||||
Expected volatility | 76.49 | % | 79.65 | % | |||||
Expected volatility was based primarily on historical volatility. Historical volatility was computed using daily pricing observations for recent periods that correspond to the expected term of the Warrants. The Company believes this method produces an estimate that is representative of the Company’s expectations of future volatility over the expected term of these Warrants. The Company currently has no reason to believe future volatility over the expected remaining life of these Warrants is likely to differ materially from historical volatility. The expected life is based on the remaining contractual term of the Warrants. The risk-free interest rate is the interest rate for treasury constant maturity instruments published by the Federal Reserve Board that is closest to the expected term of the Warrants. | |||||||||
Fluctuations in the fair value of the Warrants are impacted by unobservable inputs, most significantly the assumption with regards to future equity issuances and their impact to the down-round protection feature. Significant increases (decreases) in this input in isolation would result in a significantly higher (lower) fair value measurement. |
Basic_and_Diluted_Net_Loss_Inc
Basic and Diluted Net (Loss) Income per Share | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Basic and Diluted Net (Loss) Income per Share | ' | ||||||||||||||||
(6) Basic and Diluted Net (Loss) Income per Share | |||||||||||||||||
Basic net (loss) income per share is calculated by dividing the net (loss) income for the period by the weighted average number of common shares outstanding during the period. Diluted net (loss) income per share includes the impact of potentially dilutive securities unless inclusion of such securities would be anti-dilutive. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net (loss) income | $ | (566 | ) | $ | 3,127 | $ | (7,176 | ) | $ | 960 | |||||||
Denominator: | |||||||||||||||||
Weighted average shares used to compute basic net (loss) income per share | 63,931,506 | 63,477,399 | 63,700,413 | 63,469,217 | |||||||||||||
Effect of dilutive share-based awards | — | 868,694 | — | 793,667 | |||||||||||||
63,931,506 | 64,346,093 | 63,700,413 | 64,262,884 | ||||||||||||||
Basic net (loss) income per share | $ | (0.01 | ) | $ | 0.05 | $ | (0.11 | ) | $ | 0.02 | |||||||
Diluted net (loss) income per share | $ | (0.01 | ) | $ | 0.05 | $ | (0.11 | ) | $ | 0.01 | |||||||
Outstanding options to purchase an aggregate of 7,391,006 and 7,772,752 shares of the Company’s common stock for the three and nine months ended December 31, 2013, respectively, and 8,521,487 and 7,861,030 shares of the Company’s common stock for the three and nine months ended December 31, 2012, respectively, were excluded from the diluted net (loss) income per share calculations because of their anti-dilutive effect during these periods. Outstanding warrants to purchase an aggregate of 2,540,918 shares of the Company’s common stock for each of the three and nine months ended December 31, 2013 and 2012, were excluded from the diluted net (loss) income per share calculations because of their anti-dilutive effect during these periods. |
Geographic_Data_and_Concentrat
Geographic Data and Concentrations | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Geographic Data and Concentrations | ' | ||||||||||||||||
(7) Geographic Data and Concentrations | |||||||||||||||||
The Company’s net sales are attributed to the following geographic regions (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Europe | $ | 20,983 | $ | 23,164 | $ | 40,575 | $ | 47,930 | |||||||||
North America | 9,877 | 19,060 | 23,195 | 43,142 | |||||||||||||
APAC | 2,029 | 2,795 | 5,642 | 6,984 | |||||||||||||
$ | 32,889 | $ | 45,019 | $ | 69,412 | $ | 98,056 | ||||||||||
Net sales are attributed to geographic regions based on the location of the customer. During the three and nine months ended December 31, 2013, one customer accounted for approximately 15% and 13% of the Company’s gross sales, respectively, and one other customer accounted for approximately 12% and 11% of the Company’s gross sales, respectively. During the three and nine months ended December 31, 2012, one customer accounted for approximately 25% and 26% of the Company’s gross sales, respectively, and one other customer accounted for approximately 10% and 8% of the Company’s gross sales, respectively. At December 31, 2013, one customer represented 23% of accounts receivable. At March 31, 2013, one customer represented 15% of accounts receivable and another customer represented 12% of accounts receivable. During the three and nine months ended December 31, 2013 and 2012, no other customers accounted for greater than 10% of gross sales. At December 31, 2013 and March 31, 2013, no other customers accounted for greater than 10% of accounts receivable. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Nature of Operations | ' |
Nature of Operations | |
Mad Catz Interactive, Inc. (“Mad Catz”) designs, manufactures (primarily through third parties in Asia), markets and distributes innovative interactive entertainment products marketed under its Mad Catz® (gaming), Tritton® (audio), and Saitek® (simulation) brands. Mad Catz products, which primarily include headsets, mice, keyboards, controllers, specialty controllers, and other accessories, cater to passionate gamers across multiple platforms including in-home gaming consoles, handheld gaming consoles, Windows® PC and Mac® computers, smart phones, tablets and other mobile devices. Mad Catz distributes its products through its online store as well as distribution via many leading retailers around the globe. Headquartered in San Diego, California, Mad Catz also maintains offices in Europe and Asia. | |
Basis of Accounting | ' |
Basis of Accounting | |
The accompanying unaudited consolidated financial information has been prepared by management, in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. The consolidated balance sheet at March 31, 2013 was derived from the audited consolidated financial statements at that date; however, it does not include all disclosures required by accounting principles generally accepted in the United States (“U.S. GAAP”). | |
In the opinion of management, the unaudited consolidated financial statements for the interim period presented reflect all material adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial position and results of operations as of and for such periods indicated. These unaudited consolidated financial statements and notes hereto should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2013. These consolidated financial statements refer to the Company’s fiscal years ending March 31 as its “fiscal” years. The Company generates a substantial percentage of net sales in the last three months of every calendar year, its fiscal third quarter. Results for the interim periods presented herein are not necessarily indicative of results that may be reported for any other interim period or for the fiscal year ending March 31, 2014. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The accompanying unaudited consolidated financial statements include the accounts of Mad Catz and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. References to the “Company,” “we,” “us,” “our” and other similar words refer to Mad Catz Interactive, Inc. and its consolidated subsidiaries, unless the context suggests otherwise. | |
Use of Estimates | ' |
Use of Estimates | |
The unaudited consolidated financial statements have been prepared in conformity with U.S. GAAP. Applying these principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of sales and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates, including those related to asset impairments, reserves for accounts receivable and inventories, contingencies and litigation, valuation and recognition of share-based payments, the liability for contingent consideration, warrant liability and income taxes. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Recognized Assets and Liabilities Carried at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following tables provide a summary of the recognized assets and liabilities carried at fair value on a recurring basis as of December 31, 2013 and March 31, 2013 (in thousands): | |||||||||||||||||
Basis of Fair Value Measurements | |||||||||||||||||
December 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Liabilities: | |||||||||||||||||
Contingent consideration (Note 3) | $ | (2,313 | ) | $ | — | $ | — | $ | (2,313 | ) | |||||||
Warrant liability (Note 5) | $ | (159 | ) | $ | — | $ | — | $ | (159 | ) | |||||||
Basis of Fair Value Measurements | |||||||||||||||||
March 31, 2013 | Level 1 | Level 2 | Level 3 | ||||||||||||||
Liabilities: | |||||||||||||||||
Contingent consideration (Note 3) | $ | (3,864 | ) | $ | — | $ | — | $ | (3,864 | ) | |||||||
Warrant liability (Note 5) | $ | (149 | ) | $ | — | $ | — | $ | (149 | ) | |||||||
Fair Value Measurements of Contingent Consideration Liability and Warrant Liability | ' | ||||||||||||||||
The following tables provide a roll forward of the Company’s level three fair value measurements during the nine months ended December 31, 2013, which consist of the Company’s contingent consideration liability and warrant liability (in thousands): | |||||||||||||||||
Contingent consideration: | |||||||||||||||||
Balance at March 31, 2013 | $ | (3,864 | ) | ||||||||||||||
Contingent consideration payment | 1,650 | ||||||||||||||||
Increases during the year – acquisition related expense | (99 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | (2,313 | ) | ||||||||||||||
Warrant liability: | |||||||||||||||||
Balance at March 31, 2013 | $ | (149 | ) | ||||||||||||||
Change in fair value of warrant liability | (10 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | (159 | ) | ||||||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
Inventories consist of the following (in thousands): | |||||||||
December 31, | March 31, | ||||||||
2013 | 2013 | ||||||||
Raw materials | $ | 805 | $ | 1,789 | |||||
Finished goods | 19,799 | 22,006 | |||||||
$ | 20,604 | $ | 23,795 | ||||||
Securities_Purchase_Agreement_
Securities Purchase Agreement (Tables) | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||
Estimated Fair Value of Warrants | ' | ||||||||
These Warrants are not traded in an active securities market, and as such, the Company estimated the fair value of the Warrants using the Black-Scholes option pricing model using the following assumptions: | |||||||||
December 31, | March 31, | ||||||||
2013 | 2013 | ||||||||
Expected term | 2.75 years | 3.5 years | |||||||
Common stock market price | $ | 0.51 | $ | 0.38 | |||||
Risk-free interest rate | 0.68 | % | 0.46 | % | |||||
Expected volatility | 76.49 | % | 79.65 | % |
Basic_and_Diluted_Net_Loss_Inc1
Basic and Diluted Net (Loss) Income per Share (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Calculation of Basic and Diluted Net Income (Loss) per Share | ' | ||||||||||||||||
Diluted net (loss) income per share includes the impact of potentially dilutive securities unless inclusion of such securities would be anti-dilutive. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net (loss) income | $ | (566 | ) | $ | 3,127 | $ | (7,176 | ) | $ | 960 | |||||||
Denominator: | |||||||||||||||||
Weighted average shares used to compute basic net (loss) income per share | 63,931,506 | 63,477,399 | 63,700,413 | 63,469,217 | |||||||||||||
Effect of dilutive share-based awards | — | 868,694 | — | 793,667 | |||||||||||||
63,931,506 | 64,346,093 | 63,700,413 | 64,262,884 | ||||||||||||||
Basic net (loss) income per share | $ | (0.01 | ) | $ | 0.05 | $ | (0.11 | ) | $ | 0.02 | |||||||
Diluted net (loss) income per share | $ | (0.01 | ) | $ | 0.05 | $ | (0.11 | ) | $ | 0.01 |
Geographic_Data_and_Concentrat1
Geographic Data and Concentrations (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Net Sales Attributed to Geographic Regions | ' | ||||||||||||||||
The Company’s net sales are attributed to the following geographic regions (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Europe | $ | 20,983 | $ | 23,164 | $ | 40,575 | $ | 47,930 | |||||||||
North America | 9,877 | 19,060 | 23,195 | 43,142 | |||||||||||||
APAC | 2,029 | 2,795 | 5,642 | 6,984 | |||||||||||||
$ | 32,889 | $ | 45,019 | $ | 69,412 | $ | 98,056 | ||||||||||
Fair_Value_Measurements_Recogn
Fair Value Measurements - Recognized Assets and Liabilities Carried at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities: | ' | ' |
Contingent consideration (Note 3) | ($2,313) | ($3,864) |
Warrant liability (Note 5) | -159 | -149 |
Level 1 [Member] | ' | ' |
Liabilities: | ' | ' |
Contingent consideration (Note 3) | ' | ' |
Warrant liability (Note 5) | ' | ' |
Level 2 [Member] | ' | ' |
Liabilities: | ' | ' |
Contingent consideration (Note 3) | ' | ' |
Warrant liability (Note 5) | ' | ' |
Level 3 [Member] | ' | ' |
Liabilities: | ' | ' |
Contingent consideration (Note 3) | -2,313 | -3,864 |
Warrant liability (Note 5) | ($159) | ($149) |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value Measurements of Contingent Consideration Liability and Warrant Liability (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | |
Contingent consideration: | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ($3,864,000) | ' | ' | ' | ' |
Contingent consideration payment | ' | ' | 1,650,000 | ' | 1,650,000 | 1,592,000 | 1,546,000 |
Increases during the year - acquisition related expense | 53,000 | -320,000 | -99,000 | -1,044,000 | ' | ' | ' |
Ending Balance | -2,313,000 | ' | -2,313,000 | ' | -3,864,000 | ' | ' |
Warrant liability: | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | -149,000 | ' | ' | ' | ' |
Change in fair value of warrant liability | 324,000 | 273,000 | -10,000 | 343,000 | ' | ' | ' |
Ending Balance | ($159,000) | ' | ($159,000) | ' | ($149,000) | ' | ' |
Contingent_Consideration_Addit
Contingent Consideration - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | |
Commitments And Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Contingent consideration arrangement period | '5 years | ' | ' | ' |
Contingent consideration based on the percentage of future sales | $8,700,000 | ' | ' | ' |
Discount rate | 13.20% | ' | ' | ' |
Contingent consideration paid | $1,650,000 | $1,650,000 | $1,592,000 | $1,546,000 |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventory (Detail) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $805 | $1,789 |
Finished goods | 19,799 | 22,006 |
Inventories | $20,604 | $23,795 |
Securities_Purchase_Agreement_1
Securities Purchase Agreement - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Oct. 21, 2011 | 3-May-11 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Apr. 30, 2011 | |
Schedule Of Investments [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of common stock | ' | ' | 63,931,506 | ' | 63,931,506 | ' | 63,477,399 | 6,352,293 |
Warrants to purchase shares of common stock | ' | 2,540,918 | ' | ' | ' | ' | ' | 2,540,918 |
Number of shares, registering | ' | 8,893,211 | ' | ' | ' | ' | ' | ' |
Securities issued price per share | ' | $1.92 | $0.51 | ' | $0.51 | ' | $0.38 | ' |
Proceeds from issuance of Securities | ' | $12,196,000 | ' | ' | ' | ' | ' | ' |
Warrants exercise price | $2.56 | ' | ' | ' | ' | ' | ' | ' |
Warrants expiration date | ' | ' | ' | ' | 21-Oct-16 | ' | ' | ' |
Fair value of Warrants | ' | ' | 159,000 | ' | 159,000 | ' | 149,000 | ' |
Change in fair value of warrant liability | ' | ' | ($324,000) | ($273,000) | $10,000 | ($343,000) | ' | ' |
Securities_Purchase_Agreement_2
Securities Purchase Agreement - Estimated Fair Value of Warrants (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Mar. 31, 2013 | 3-May-11 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Expected term | '2 years 9 months | '3 years 6 months | ' |
Common stock market price | $0.51 | $0.38 | $1.92 |
Risk-free interest rate | 0.68% | 0.46% | ' |
Expected volatility | 76.49% | 79.65% | ' |
Basic_and_Diluted_Net_Income_L
Basic and Diluted Net Income (Loss) per Share - Calculation of Basic and Diluted Net Income (Loss) per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | ' | ' | ' | ' |
Net (loss) income | ($566) | $3,127 | ($7,176) | $960 |
Denominator: | ' | ' | ' | ' |
Weighted average shares used to compute basic net (loss) income per share | 63,931,506 | 63,477,399 | 63,700,413 | 63,469,217 |
Effect of dilutive share-based awards | ' | 868,694 | ' | 793,667 |
Denominator for diluted net income (loss) per share | 63,931,506 | 64,346,093 | 63,700,413 | 64,262,884 |
Basic net (loss) income per share | ($0.01) | $0.05 | ($0.11) | $0.02 |
Diluted net (loss) income per share | ($0.01) | $0.05 | ($0.11) | $0.01 |
Basic_and_Diluted_Net_Income_L1
Basic and Diluted Net Income (Loss) per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Purchase of common stock outstanding | 7,391,006 | 8,521,487 | 7,772,752 | 7,861,030 |
Warrants [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Purchase of common stock outstanding | 2,540,918 | 2,540,918 | 2,540,918 | 2,540,918 |
Geographic_Data_and_Concentrat2
Geographic Data and Concentrations - Net Sales Attributed to Geographic Regions (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | $32,889 | $45,019 | $69,412 | $98,056 |
Europe [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 20,983 | 23,164 | 40,575 | 47,930 |
North America [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 9,877 | 19,060 | 23,195 | 43,142 |
APAC [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | $2,029 | $2,795 | $5,642 | $6,984 |
Geographic_Data_and_Concentrat3
Geographic Data and Concentrations - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts receivable [Member] | Accounts receivable [Member] | Gross sales [Member] | Gross sales [Member] | Gross sales [Member] | Gross sales [Member] | Customer one [Member] | Customer one [Member] | Customer one [Member] | Customer one [Member] | Customer one [Member] | Customer one [Member] | Customer two [Member] | Customer two [Member] | Customer two [Member] | Customer two [Member] | Customer two [Member] | |
Accounts receivable [Member] | Accounts receivable [Member] | Gross sales [Member] | Gross sales [Member] | Gross sales [Member] | Gross sales [Member] | Accounts receivable [Member] | Gross sales [Member] | Gross sales [Member] | Gross sales [Member] | Gross sales [Member] | |||||||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customers accounted for revenue and accounts receivable, Percentage | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 23.00% | 15.00% | 15.00% | 25.00% | 13.00% | 26.00% | 12.00% | 12.00% | 10.00% | 11.00% | 8.00% |