Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2015 | Jan. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MCZ | |
Entity Registrant Name | MAD CATZ INTERACTIVE INC | |
Entity Central Index Key | 1,088,162 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 73,469,571 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 |
Current assets: | ||
Cash | $ 3,986 | $ 5,142 |
Restricted cash | 5,780 | |
Accounts receivable, net | 26,944 | 7,823 |
Other receivables | 1,384 | 560 |
Inventories | 27,738 | 15,479 |
Deferred tax assets | 169 | 2,245 |
Income taxes receivable | 341 | 967 |
Prepaid expenses and other current assets | 2,707 | 1,293 |
Total current assets | 69,049 | 33,509 |
Deferred tax assets | 7,585 | 7,605 |
Other assets | 606 | 418 |
Property and equipment, net | 3,682 | 3,376 |
Intangible assets, net | 2,377 | 2,584 |
Total assets | 83,299 | 47,492 |
Current liabilities: | ||
Bank loans | 27,502 | 7,920 |
Accounts payable | 28,351 | 16,404 |
Accrued liabilities | 12,778 | 4,196 |
Notes payable | 637 | 1,015 |
Income taxes payable | 536 | 141 |
Total current liabilities | 69,804 | 29,676 |
Notes payable, less current portion | 158 | 36 |
Warrant liabilities | 904 | 1,187 |
Deferred tax liabilities | 43 | 43 |
Deferred rent | 691 | 762 |
Total liabilities | 71,600 | 31,704 |
Shareholders' equity: | ||
Common stock, no par value, unlimited shares authorized; 73,469,571 shares issued and outstanding at December 31, 2015 and March 31, 2015, respectively | 63,485 | 63,128 |
Accumulated other comprehensive loss | (5,212) | (5,123) |
Accumulated deficit | (46,574) | (42,217) |
Total shareholders' equity | 11,699 | 15,788 |
Total liabilities and shareholders' equity | $ 83,299 | $ 47,492 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Mar. 31, 2015 | |
Statement of Financial Position [Abstract] | ||
Common stock, par value | ||
Common stock, shares authorized | Unlimited | Unlimited |
Common stock, shares issued | 73,469,571 | 73,469,571 |
Common stock, shares outstanding | 73,469,571 | 73,469,571 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 65,038 | $ 30,451 | $ 116,930 | $ 69,665 |
Cost of sales | 53,633 | 22,273 | 93,641 | 49,693 |
Gross profit | 11,405 | 8,178 | 23,289 | 19,972 |
Operating expenses: | ||||
Sales and marketing | 4,865 | 2,673 | 12,038 | 8,562 |
General and administrative | 2,600 | 2,337 | 8,132 | 8,210 |
Research and development | 1,007 | 852 | 2,869 | 2,220 |
Amortization of intangible assets | 112 | 109 | 332 | 328 |
Total operating expenses | 8,584 | 5,971 | 23,371 | 19,320 |
Operating income (loss) | 2,821 | 2,207 | (82) | 652 |
Other expense: | ||||
Interest expense, net | (657) | (238) | (1,278) | (563) |
Foreign currency exchange loss, net | (657) | (83) | (750) | (500) |
Change in fair value of warrant liabilities | 1,200 | 1 | 283 | 56 |
Other income | 18 | 13 | 40 | 92 |
Total other expense | (96) | (307) | (1,705) | (915) |
Income (loss) before income taxes | 2,725 | 1,900 | (1,787) | (263) |
Income tax expense | (1,506) | (542) | (2,570) | (546) |
Net income (loss) | $ 1,219 | $ 1,358 | $ (4,357) | $ (809) |
Net income (loss) per share: | ||||
Basic | $ 0.02 | $ 0.02 | $ (0.06) | $ (0.01) |
Diluted | $ 0.02 | $ 0.02 | $ (0.06) | $ (0.01) |
Shares used in per share computations: | ||||
Basic | 73,469,571 | 64,488,798 | 73,469,571 | 64,240,446 |
Diluted | 73,902,905 | 64,644,470 | 73,469,571 | 64,240,446 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,219 | $ 1,358 | $ (4,357) | $ (809) |
Foreign currency translation adjustments | (295) | (1,170) | (89) | (1,965) |
Comprehensive income (loss) | $ 924 | $ 188 | $ (4,446) | $ (2,774) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (4,357) | $ (809) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,711 | 1,549 |
Accrued and unpaid interest expense on note payable | 10 | |
Amortization of deferred financing fees | 262 | 57 |
Loss on disposal of assets | 4 | 8 |
Stock-based compensation | 357 | 376 |
Change in fair value of warrant liabilities | (283) | (56) |
Provision for deferred income taxes | 2,096 | 114 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (19,150) | (7,314) |
Other receivables | (825) | 511 |
Inventories | (12,277) | (1,460) |
Prepaid expenses and other current assets | (1,168) | (49) |
Other assets | 114 | 36 |
Accounts payable | 12,031 | 2,585 |
Accrued liabilities | 8,698 | (292) |
Deferred rent | (71) | 553 |
Income taxes receivable/payable | 1,019 | (50) |
Net cash used in operating activities | (11,839) | (4,231) |
Cash flows from investing activities: | ||
Purchases of intangible assets | (125) | |
Purchases of property and equipment | (1,600) | (1,604) |
Net cash used in investing activities | (1,725) | (1,604) |
Cash flows from financing activities: | ||
Borrowings on bank loans | 103,629 | 53,839 |
Repayments on bank loans | (84,047) | (44,824) |
Payment of financing fees | (818) | (50) |
Changes in restricted cash | (5,780) | |
Borrowings on notes payable | 95 | |
Repayments on notes payable | (501) | (791) |
Proceeds from exercise of stock options | 236 | |
Payment of expenses related to issuance of common stock | (164) | |
Net cash provided by financing activities | 12,414 | 8,410 |
Effects of foreign currency exchange rate changes on cash | (6) | (181) |
Net increase in cash | (1,156) | 2,394 |
Cash, beginning of period | 5,142 | 1,496 |
Cash, end of period | 3,986 | 3,890 |
Supplemental cash flow information: | ||
Income taxes paid | 314 | 578 |
Interest paid | $ 1,190 | $ 350 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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 ® ® ® ® Basis of Accounting The accompanying unaudited consolidated financial information has been prepared by management, without audit, in accordance with the instructions to Form 10-Q Regulation S-X. The Company maintained a Credit Facility with Wells Fargo Capital Finance, LLC (“Wells Fargo”) to borrow up to $25 million under a revolving line of credit subject to the availability of eligible collateral (accounts receivable and inventories), which changed throughout the year. Borrowings under the Credit Facility were secured by a first priority security interest in the inventories, equipment, and accounts receivable of certain of our subsidiaries and by a pledge of all of the capital stock of our subsidiaries. On June 30, 2015, Mad Catz, Inc. (“MCI”), a wholly-owned subsidiary of the Company, entered into a Loan and Security Agreement (the “Loan Agreement”) with NewStar Business Credit LLC (“NSBC”) to provide for a $20.0 million revolving line of credit (which increases to $35.0 million from September 1, 2015 through February 29, 2016) subject to the availability of eligible accounts receivable and inventories, which changes throughout the year. The Loan Agreement expires on June 30, 2018. The Company is required to meet a monthly financial covenant based on a trailing twelve months’ Adjusted EBITDA, as defined. Additionally, on June 30, 2015, Mad Catz Europe Ltd. (“MCE”), a wholly-owned subsidiary of the Company, entered into a Master Facilities Agreement (the “Facilities Agreement”) with Faunus Group International, Inc. (“FGI”) to provide for a $10.0 million secured demand credit facility subject to the availability of eligible accounts receivable and inventories, which changes throughout the year. The Facilities Agreement has a three-year term, although FGI may terminate the facility at any time upon at least three months’ notice. On July 6, 2015, the closing date of the Loan Agreement and Facilities Agreement, the Company used the proceeds to pay in full the obligations outstanding under the credit facility with Wells Fargo, and the agreement with Wells Fargo was terminated. The Company depends upon the availability of capital under the Loan Agreement and Facilities Agreement to finance operations. The Company operates in a rapidly evolving and often unpredictable business environment that may change the timing or amount of expected future sales and expenses. If the Company is unable to comply with the Adjusted EBITDA covenants contained in the Loan Agreement, as amended from time to time, NSBC could declare the outstanding borrowings under the facility immediately due and payable. If the Company needs to obtain additional funds as a result of the termination of the Loan Agreement or the acceleration of amounts due thereunder, there can be no assurance that alternative financing can be obtained on substantially similar or acceptable terms, or at all. The Company’s failure to promptly obtain alternate financing could limit our ability to implement our business plan and have an immediate, severe and adverse impact on our business, results of operations, financial condition and liquidity. In the event that no alternative financing is available, the Company would be forced to drastically curtail operations, or dispose of assets, or cease operations altogether. 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 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, warrant liabilities and income taxes. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. Recently Issued Accounting Standards In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes, which removes the requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. Instead, the update requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for public business entities for fiscal years beginning after December 15, 2016, with prospective or retrospective application allowed to all periods presented. Early application is permitted. The Company has elected not to early adopt this guidance and the adoption of this guidance is not expected to have a material impact on the Company’s financial condition or results of operations. In July 2015, the FASB issued ASU 2015-11, In April 2015, the FASB issued ASU 2015-03, (Subtopic 835-30): ASU 2015-15, (Subtopic 835-30): ASU 2015-15 Subtopic 835-30 In August 2014, the FASB issued ASU 2014-15, ASU 2014-15 In May 2014, the FASB issued ASU 2014-09, ASU 2014-09 ASU 2014-09 ASU 2014-09. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (2) Fair Value Measurements The carrying values of the Company’s financial instruments, including cash, restricted cash, accounts receivable, other receivables, accounts payable, accrued liabilities and income taxes receivable/payable approximate their fair values due to the short maturity of these instruments. The carrying value of the bank loans approximates their fair value as the interest rate and other terms are that which is currently available to the Company. The carrying value of the note payable approximates fair value as it represents the present value using an effective interest rate of 5.25%, which approximates the interest rate on the Company’s domestic bank loan. For a description of the fair value hierarchy, see Note 2 to the Company’s 2015 consolidated financial statements contained in the Company’s Annual Report on Form 10-K The following tables provide a summary of the recognized assets and liabilities carried at fair value on a recurring basis (in thousands): Basis of Fair Value Measurements Balance as of December 31, 2015 Level 1 Level 2 Level 3 Liabilities: Warrant liabilities (Note 5) $ (904 ) $ — $ — $ (904 ) Basis of Fair Value Measurements Balance as of Level 1 Level 2 Level 3 Liabilities: Warrant liabilities (Note 5) $ (1,187 ) $ — $ — $ (1,187 ) The following table provides a roll forward of the Company’s level three fair value measurements during the nine months ended December 31, 2015, which consist of the Company’s warrant liabilities (in thousands): Warrant liabilities: Balance at March 31, 2015 $ (1,187 ) Change in fair value of warrant liabilities 283 Balance at December 31, 2015 $ (904 ) |
Inventories
Inventories | 9 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | (3) Inventories Inventories consist of the following (in thousands): December 31, 2015 March 31, 2015 Raw materials $ 1,830 $ 735 Finished goods 25,908 14,744 $ 27,738 $ 15,479 |
Restricted cash
Restricted cash | 9 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Restricted cash | (4) Restricted cash Cash accounts that are restricted as to withdrawal or usage are presented as restricted cash. As of December 31, 2015, the Company had $5.8 million of restricted cash held by a bank in deposit accounts. This amount represents payments from customers into restricted bank accounts on December 31, 2015 that were subsequently automatically swept to repay borrowings under our bank loans. |
Securities Purchase Agreements
Securities Purchase Agreements | 9 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Securities Purchase Agreements | (5) Securities Purchase Agreements 2015 Securities Purchase Agreement On March 24, 2015, the Company entered into a Securities Purchase Agreement (the “2015 Securities Purchase Agreement”) with certain accredited investors, pursuant to which the Company sold (a) an aggregate of 8,980,773 shares of its common stock (the “2015 Shares”) and (b) warrants to purchase an aggregate of 4,490,387 shares of common stock of the Company (“2015 Warrants” and, together with the 2015 Shares, the “2015 Securities”). The 2015 Securities were issued at a price equal to $0.41 for aggregate gross proceeds of approximately $3,682,000. The 2015 Warrants became exercisable on September 24, 2015 at a per share exercise price equal to $0.61 and expire on September 24, 2020. The 2015 Warrants are subject to limitation on exercise if the Holder or its affiliates would beneficially own more than 9.99%/4.99% of the total number of the Company’s shares of common stock following such exercise. The 2015 Warrants also provide that in the event of a Company Controlled Fundamental Transaction (as defined in the 2015 Warrants), the Company may, at the election of the 2015 Warrant holder, be required to redeem all or a portion of the 2015 Warrants for cash in an amount equal to the Black-Scholes option pricing model value. As a result of this cash settlement provision, the 2015 Warrants are classified as liabilities and carried at fair value, with changes in fair value included in net income (loss) until such time as the 2015 Warrants are exercised or expire. The fair value of the 2015 Warrants decreased from $1,172,000 as of March 31, 2015 to $904,000 as of December 31, 2015, which resulted in a $268,000 gain from the change in fair value of warrant liabilities for the nine months ended December 31, 2015. The 2015 Warrants are not traded in an active securities market, and as such, the Company estimates the fair value of the of the warrant liability using the Black-Scholes option pricing model using the following assumptions: December 31, 2015 March 31, 2015 Expected term 4.75 years 5.5 years Common stock market price $ 0.40 $ 0.37 Risk-free interest rate 1.70 % 1.46 % Expected volatility 73.53 % 100 % Expected volatility is based primarily on historical volatility. Historical volatility was computed using daily pricing observations for recent periods that correspond to the expected term of the 2015 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 the 2015 Warrants. The Company currently has no reason to believe future volatility over the expected remaining life of the 2015 Warrants is likely to differ materially from historical volatility. The expected life is based on the remaining contractual term of the 2015 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 2015 Warrants. Fluctuations in the fair value of the 2015 Warrants are impacted by unobservable inputs, most significantly the Company’s common stock market price. Significant increases (decreases) in this input in isolation would result in a significantly higher (lower) fair value measurement. 2011 Securities Purchase Agreement In April 2011, the Company entered into a Securities Purchase Agreement (the “2011 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 “2011 Shares”) and (b) warrants to purchase an aggregate of 2,540,918 shares of common stock of the Company (“2011 Warrants” and, together with the 2011 Shares, the “2011 Securities”). The 2011 Securities were issued at a price equal to $1.92 for aggregate gross proceeds of approximately $12,196,000. The 2011 Warrants became exercisable on October 21, 2011 at a per share exercise price equal to $2.56 and expire on October 21, 2016. The 2011 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 2011 Warrants. As a result of this exercise price reset feature, the 2011 Warrants are classified as liabilities and carried at fair value, with changes in fair value included in net income (loss) until such time as the 2011 Warrants are exercised or expire. As a result of the March 2015 offering, described above, and pursuant to the terms of the 2011 Warrants, the exercise price of the 2011 Warrants was adjusted to $2.30 per share. The fair value of the 2011 Warrants decreased from $15,000 as of March 31, 2015 to $0 as of December 31, 2015, which resulted in a $15,000 gain from the change in fair value of warrant liabilities for the nine months ended December 31, 2015. The 2011 Warrants are not traded in an active securities market, and as such, the Company estimated the fair value of the 2011 Warrants using the Black-Scholes option pricing model using the following assumptions: December 31, 2015 March 31, 2015 Expected term 0.75 years 1.5 years Common stock market price $ 0.40 $ 0.37 Risk-free interest rate 0.57 % 0.41 % Expected volatility 64.23 % 73.53 % Expected volatility is based primarily on historical volatility. Historical volatility is computed using daily pricing observations for recent periods that correspond to the expected term of the 2011 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 2011 Warrants. The Company currently has no reason to believe future volatility over the expected remaining life of these 2011 Warrants is likely to differ materially from historical volatility. The expected life is based on the remaining contractual term of the 2011 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 2011 Warrants. Fluctuations in the fair value of the 2011 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. |
At the Market Offering Agreemen
At the Market Offering Agreement | 9 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
At the Market Offering Agreement | (6) At the Market Offering Agreement On November 4, 2015, the Company established an “at-the-market” (“ATM”) equity offering program through which the Company may sell from time to time up to an aggregate of $25.0 million of our common stock. As of December 31, 2015, no shares of the Company’s common stock have been sold. |
Basic and Diluted Net Income (L
Basic and Diluted Net Income (Loss) per Share | 9 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) per Share | (7) Basic and Diluted Net Income (Loss) per Share Basic net income (loss) per share is calculated by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share includes the impact of potentially dilutive securities unless inclusion of such securities would be anti-dilutive. The following table sets forth the computation of diluted weighted average common and potential common shares outstanding for the three and nine months ended December 31, 2015 and 2014: Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014 Numerator: Net income (loss) $ 1,219 $ 1,358 $ (4,357 ) $ (809 ) Denominator: Weighted average shares used to compute basic loss per share 73,469,571 64,488,798 73,469,571 64,240,446 Effect of dilutive share-based awards 433,334 155,672 — — Denominator for diluted net income (loss) per share 73,902,905 64,644,470 73,469,571 64,240,446 Basic income (loss) per share $ 0.02 $ 0.02 $ (0.06 ) $ (0.01 ) Diluted income (loss) per share $ 0.02 $ 0.02 $ (0.06 ) $ (0.01 ) Outstanding options to purchase an aggregate of 7,687,983 and 7,994,415 shares of the Company’s common stock for the three and nine months ended December 31, 2015, respectively, and 7,749,132 and 7,310,704 shares of the Company’s common stock for the three and nine months ended December 31, 2014, respectively, were excluded from the diluted net income (loss) per share calculations because of their anti-dilutive effect during these periods. Outstanding warrants to purchase an aggregate of 7,031,305 shares of the Company’s common stock for each of the three and nine months ended December 31, 2015 and 2,540,918 shares of the Company’s common stock for each of the three and nine months ended December 31, 2014 were excluded from the diluted net income (loss) per share calculations because of their anti-dilutive effect during these periods. |
Geographic and Product Line Dat
Geographic and Product Line Data and Concentrations | 9 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Geographic and Product Line Data and Concentrations | (8) Geographic and Product Line Data and Concentrations The Company’s net sales are attributed to the following geographic regions (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014 Americas $ 47,002 $ 9,573 $ 79,003 $ 22,281 EMEA 16,702 17,825 32,000 37,104 APAC 1,334 3,053 5,927 10,280 $ 65,038 $ 30,451 $ 116,930 $ 69,665 Revenue is attributed to geographic regions based on the location of the customer. During the three and nine months ended December 31, 2015, one customer accounted for approximately 29% and 25% of the Company’s gross sales, respectively and one other customer accounted for approximately 14% and 15% of the Company’s gross sales, respectively. During the three and nine months ended December 31, 2014, one customer accounted for approximately 15% and 13% of the Company’s gross sales, respectively, another customer accounted for approximately 11% and 10% of the Company’s gross sales, respectively, and one other customer accounted for approximately 10% and 9% of the Company’s gross sales, respectively. At December 31, 2015, one customer represented 35% of accounts receivable and another customer represented 16% of accounts receivable. At March 31, 2015, two customers represented 14%, each, of accounts receivable and another customer represented 11% of accounts receivable. During the three and nine months ended December 31, 2015 and 2014, no other customers accounted for greater than 10% of gross sales. At December 31, 2015 and March 31, 2015, no other customers accounted for greater than 10% of accounts receivable. The Company’s sales by platform as a percentage of gross sales were as follows: Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014 Next gen consoles (a) 79 % 21 % 71 % 19 % PC and Mac 14 % 43 % 19 % 44 % Universal 5 % 25 % 6 % 23 % Smart devices 2 % 5 % 3 % 8 % Legacy consoles (b) — % 6 % 1 % 6 % 100 % 100 % 100 % 100 % (a) Includes products developed for Xbox One, PlayStation 4 and Wii U. (b) Includes products developed for Xbox 360, PlayStation 3 and Wii. The Company’s sales by product category as a percentage of gross sales were as follows: Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014 Specialty controllers 72 % 22 % 67 % 23 % Audio 16 % 47 % 18 % 43 % Mice and keyboards 6 % 23 % 8 % 23 % Accessories 4 % 4 % 3 % 4 % Games and other 1 % — % 2 % 1 % Controllers 1 % 4 % 2 % 6 % 100 % 100 % 100 % 100 % The Company’s sales by brand as a percentage of gross sales were as follows: Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014 Mad Catz 78 % 34 % 72 % 34 % Tritton 15 % 44 % 17 % 39 % Saitek 6 % 17 % 9 % 18 % All others 1 % 5 % 2 % 9 % 100 % 100 % 100 % 100 % |
Subsequent Events
Subsequent Events | 9 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | (9) Subsequent Events On February 5, 2016, the Company’s Board of Directors approved a restructuring plan in order to lower operating costs, increase efficiencies and better align the Company’s workforce with the needs of the business. The plan consists of a reduction in the number of Company positions across the organization equal to approximately 37% of its total workforce. As a result of the reductions, the Company expects to record cash restructuring charges during the fourth quarter of fiscal 2016, comprised primarily of severance and benefits afforded to terminated employees and executive officers, of approximately $3.0 million. The Company anticipates that the actions associated with the reductions will be substantially completed by the end of the fiscal fourth quarter of 2016. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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 ® ® ® ® |
Basis of Accounting | Basis of Accounting The accompanying unaudited consolidated financial information has been prepared by management, without audit, in accordance with the instructions to Form 10-Q Regulation S-X. The Company maintained a Credit Facility with Wells Fargo Capital Finance, LLC (“Wells Fargo”) to borrow up to $25 million under a revolving line of credit subject to the availability of eligible collateral (accounts receivable and inventories), which changed throughout the year. Borrowings under the Credit Facility were secured by a first priority security interest in the inventories, equipment, and accounts receivable of certain of our subsidiaries and by a pledge of all of the capital stock of our subsidiaries. On June 30, 2015, Mad Catz, Inc. (“MCI”), a wholly-owned subsidiary of the Company, entered into a Loan and Security Agreement (the “Loan Agreement”) with NewStar Business Credit LLC (“NSBC”) to provide for a $20.0 million revolving line of credit (which increases to $35.0 million from September 1, 2015 through February 29, 2016) subject to the availability of eligible accounts receivable and inventories, which changes throughout the year. The Loan Agreement expires on June 30, 2018. The Company is required to meet a monthly financial covenant based on a trailing twelve months’ Adjusted EBITDA, as defined. Additionally, on June 30, 2015, Mad Catz Europe Ltd. (“MCE”), a wholly-owned subsidiary of the Company, entered into a Master Facilities Agreement (the “Facilities Agreement”) with Faunus Group International, Inc. (“FGI”) to provide for a $10.0 million secured demand credit facility subject to the availability of eligible accounts receivable and inventories, which changes throughout the year. The Facilities Agreement has a three-year term, although FGI may terminate the facility at any time upon at least three months’ notice. On July 6, 2015, the closing date of the Loan Agreement and Facilities Agreement, the Company used the proceeds to pay in full the obligations outstanding under the credit facility with Wells Fargo, and the agreement with Wells Fargo was terminated. The Company depends upon the availability of capital under the Loan Agreement and Facilities Agreement to finance operations. The Company operates in a rapidly evolving and often unpredictable business environment that may change the timing or amount of expected future sales and expenses. If the Company is unable to comply with the Adjusted EBITDA covenants contained in the Loan Agreement, as amended from time to time, NSBC could declare the outstanding borrowings under the facility immediately due and payable. If the Company needs to obtain additional funds as a result of the termination of the Loan Agreement or the acceleration of amounts due thereunder, there can be no assurance that alternative financing can be obtained on substantially similar or acceptable terms, or at all. The Company’s failure to promptly obtain alternate financing could limit our ability to implement our business plan and have an immediate, severe and adverse impact on our business, results of operations, financial condition and liquidity. In the event that no alternative financing is available, the Company would be forced to drastically curtail operations, or dispose of assets, or cease operations altogether. 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 |
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, warrant liabilities and income taxes. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes, which removes the requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. Instead, the update requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for public business entities for fiscal years beginning after December 15, 2016, with prospective or retrospective application allowed to all periods presented. Early application is permitted. The Company has elected not to early adopt this guidance and the adoption of this guidance is not expected to have a material impact on the Company’s financial condition or results of operations. In July 2015, the FASB issued ASU 2015-11, In April 2015, the FASB issued ASU 2015-03, (Subtopic 835-30): ASU 2015-15, (Subtopic 835-30): ASU 2015-15 Subtopic 835-30 In August 2014, the FASB issued ASU 2014-15, ASU 2014-15 In May 2014, the FASB issued ASU 2014-09, ASU 2014-09 ASU 2014-09 ASU 2014-09. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Recognized Assets and Liabilities Carried, Recurring at Fair Value | The following tables provide a summary of the recognized assets and liabilities carried at fair value on a recurring basis (in thousands): Basis of Fair Value Measurements Balance as of December 31, 2015 Level 1 Level 2 Level 3 Liabilities: Warrant liabilities (Note 5) $ (904 ) $ — $ — $ (904 ) Basis of Fair Value Measurements Balance as of Level 1 Level 2 Level 3 Liabilities: Warrant liabilities (Note 5) $ (1,187 ) $ — $ — $ (1,187 ) |
Fair Value Measurements of Warrant Liabilities | The following table provides a roll forward of the Company’s level three fair value measurements during the nine months ended December 31, 2015, which consist of the Company’s warrant liabilities (in thousands): Warrant liabilities: Balance at March 31, 2015 $ (1,187 ) Change in fair value of warrant liabilities 283 Balance at December 31, 2015 $ (904 ) |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following (in thousands): December 31, 2015 March 31, 2015 Raw materials $ 1,830 $ 735 Finished goods 25,908 14,744 $ 27,738 $ 15,479 |
Securities Purchase Agreements
Securities Purchase Agreements (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
2015 Securities Purchase Agreement [Member] | |
Estimated Fair Value of Warrants | The 2015 Warrants are not traded in an active securities market, and as such, the Company estimates the fair value of the of the warrant liability using the Black-Scholes option pricing model using the following assumptions: December 31, 2015 March 31, 2015 Expected term 4.75 years 5.5 years Common stock market price $ 0.40 $ 0.37 Risk-free interest rate 1.70 % 1.46 % Expected volatility 73.53 % 100 % |
2011 Securities Purchase Agreement [Member] | |
Estimated Fair Value of Warrants | The 2011 Warrants are not traded in an active securities market, and as such, the Company estimated the fair value of the 2011 Warrants using the Black-Scholes option pricing model using the following assumptions: December 31, 2015 March 31, 2015 Expected term 0.75 years 1.5 years Common stock market price $ 0.40 $ 0.37 Risk-free interest rate 0.57 % 0.41 % Expected volatility 64.23 % 73.53 % |
Basic and Diluted Net Income 20
Basic and Diluted Net Income (Loss) per Share (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Diluted Weighted Average Common and Potential Common Shares Outstanding | The following table sets forth the computation of diluted weighted average common and potential common shares outstanding for the three and nine months ended December 31, 2015 and 2014: Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014 Numerator: Net income (loss) $ 1,219 $ 1,358 $ (4,357 ) $ (809 ) Denominator: Weighted average shares used to compute basic loss per share 73,469,571 64,488,798 73,469,571 64,240,446 Effect of dilutive share-based awards 433,334 155,672 — — Denominator for diluted net income (loss) per share 73,902,905 64,644,470 73,469,571 64,240,446 Basic income (loss) per share $ 0.02 $ 0.02 $ (0.06 ) $ (0.01 ) Diluted income (loss) per share $ 0.02 $ 0.02 $ (0.06 ) $ (0.01 ) |
Geographic and Product Line D21
Geographic and Product Line Data and Concentrations (Tables) | 9 Months Ended |
Dec. 31, 2015 | |
Sales Attributed to Geographic Regions | The Company’s net sales are attributed to the following geographic regions (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014 Americas $ 47,002 $ 9,573 $ 79,003 $ 22,281 EMEA 16,702 17,825 32,000 37,104 APAC 1,334 3,053 5,927 10,280 $ 65,038 $ 30,451 $ 116,930 $ 69,665 |
Platform [Member] | |
Summary of Sales by Platform, Product Category and Brand | The Company’s sales by platform as a percentage of gross sales were as follows: Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014 Next gen consoles (a) 79 % 21 % 71 % 19 % PC and Mac 14 % 43 % 19 % 44 % Universal 5 % 25 % 6 % 23 % Smart devices 2 % 5 % 3 % 8 % Legacy consoles (b) — % 6 % 1 % 6 % 100 % 100 % 100 % 100 % (a) Includes products developed for Xbox One, PlayStation 4 and Wii U. (b) Includes products developed for Xbox 360, PlayStation 3 and Wii. |
Product Category [Member] | |
Summary of Sales by Platform, Product Category and Brand | The Company’s sales by product category as a percentage of gross sales were as follows: Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014 Specialty controllers 72 % 22 % 67 % 23 % Audio 16 % 47 % 18 % 43 % Mice and keyboards 6 % 23 % 8 % 23 % Accessories 4 % 4 % 3 % 4 % Games and other 1 % — % 2 % 1 % Controllers 1 % 4 % 2 % 6 % 100 % 100 % 100 % 100 % |
Brand [Member] | |
Summary of Sales by Platform, Product Category and Brand | The Company’s sales by brand as a percentage of gross sales were as follows: Three Months Ended December 31, Nine Months Ended December 31, 2015 2014 2015 2014 Mad Catz 78 % 34 % 72 % 34 % Tritton 15 % 44 % 17 % 39 % Saitek 6 % 17 % 9 % 18 % All others 1 % 5 % 2 % 9 % 100 % 100 % 100 % 100 % |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2015 | Feb. 29, 2016 |
Line of Credit Facility [Line Items] | |||
Line of credit facility covenant compliance | The Company is required to meet a monthly financial covenant based on a trailing twelve months' Adjusted EBITDA, as defined. | ||
Wells Fargo [Member] | Loan and Security Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Loan agreement and facilities agreement initiation date | Jul. 6, 2015 | ||
Wells Fargo [Member] | Master Facilities Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Loan agreement and facilities agreement initiation date | Jul. 6, 2015 | ||
Wells Fargo [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility maximum borrowing capacity | $ 25,000,000 | ||
New Star Business Credit Limited Liability Company [Member] | Loan and Security Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Loan and security expiration date | Jun. 30, 2018 | ||
New Star Business Credit Limited Liability Company [Member] | Revolving Credit Facility [Member] | Loan and Security Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility maximum borrowing capacity | $ 20,000,000 | ||
New Star Business Credit Limited Liability Company [Member] | Scenario, Forecast [Member] | Revolving Credit Facility [Member] | Loan and Security Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility maximum borrowing capacity | $ 35,000,000 | ||
Faunus Group International Inc [Member] | |||
Line of Credit Facility [Line Items] | |||
Facilities agreement expiration period | 3 years | ||
Faunus Group International Inc [Member] | Revolving Credit Facility [Member] | Master Facilities Agreement [Member] | |||
Line of Credit Facility [Line Items] | |||
Secured demand credit facility | $ 10,000,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Dec. 31, 2015 |
Loan and Security Agreement [Member] | Notes Payable [Member] | |
Short-term Debt [Line Items] | |
Note payable, interest rate percentage | 5.25% |
Fair Value Measurements - Recog
Fair Value Measurements - Recognized Assets and Liabilities Carried, Recurring at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 |
Liabilities: | ||
Warrant liabilities (Note 5) | $ (904) | $ (1,187) |
Outstanding warrants [Member] | ||
Liabilities: | ||
Warrant liabilities (Note 5) | (904) | (1,187) |
Level 3 [Member] | ||
Liabilities: | ||
Warrant liabilities (Note 5) | (904) | (1,187) |
Level 3 [Member] | Outstanding warrants [Member] | ||
Liabilities: | ||
Warrant liabilities (Note 5) | $ (904) | $ (1,187) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements of Warrant Liabilities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Warrant liabilities: | ||
Beginning Balance | $ (1,187) | |
Change in fair value of warrant liabilities | 283 | $ 56 |
Ending Balance | (904) | |
Level 3 [Member] | ||
Warrant liabilities: | ||
Beginning Balance | (1,187) | |
Change in fair value of warrant liabilities | 283 | |
Ending Balance | $ (904) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,830 | $ 735 |
Finished goods | 25,908 | 14,744 |
Inventories | $ 27,738 | $ 15,479 |
Restricted Cash - Additional In
Restricted Cash - Additional Information (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Restricted Cash and Investments [Abstract] | |
Restricted cash | $ 5,780 |
Securities Purchase Agreement28
Securities Purchase Agreements - Additional Information (Detail) - USD ($) | Sep. 24, 2015 | Mar. 24, 2015 | Oct. 21, 2011 | Apr. 30, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||
Sale of common stock | 73,469,571 | 73,469,571 | |||||
Fair value of warrants | $ 904,000 | $ 1,187,000 | |||||
Change in fair value of warrant liabilities | $ 283,000 | $ 56,000 | |||||
2015 Securities Purchase Agreement [Member] | |||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||
Sale of common stock | 8,980,773 | ||||||
Warrants to purchase shares of common stock | 4,490,387 | ||||||
Securities issued price per share | $ 0.41 | $ 0.40 | $ 0.37 | ||||
Proceeds from issuance of securities | $ 3,682,000 | ||||||
Warrants exercise price | $ 0.61 | $ 2.30 | |||||
Warrants expiration date | Sep. 24, 2020 | ||||||
Common stock warrants exercise, description | The 2015 Warrants are subject to limitation on exercise if the Holder or its affiliates would beneficially own more than 9.99%/4.99% of the total number of the Company's shares of common stock following such exercise. | ||||||
Fair value of warrants | $ 904,000 | $ 1,172,000 | |||||
Change in fair value of warrant liabilities | $ 268,000 | ||||||
2015 Securities Purchase Agreement [Member] | Common Stockholders [Member] | |||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||
Ownership percentage | 9.99% | ||||||
2015 Securities Purchase Agreement [Member] | Shareholder Affiliates [Member] | |||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||
Ownership percentage | 4.99% | ||||||
2011 Securities Purchase Agreement [Member] | |||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||||||
Sale of common stock | 6,352,293 | ||||||
Warrants to purchase shares of common stock | 2,540,918 | ||||||
Securities issued price per share | $ 1.92 | $ 0.40 | $ 0.37 | ||||
Proceeds from issuance of securities | $ 12,196,000 | ||||||
Warrants exercise price | $ 2.56 | ||||||
Warrants expiration date | Oct. 21, 2016 | ||||||
Fair value of warrants | $ 0 | $ 15,000 | |||||
Change in fair value of warrant liabilities | $ 15,000 |
Securities Purchase Agreement29
Securities Purchase Agreements - Estimated Fair Value of Warrants (Detail) - $ / shares | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 31, 2015 | Mar. 24, 2015 | Apr. 30, 2011 | |
2015 Securities Purchase Agreement [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Expected term | 4 years 9 months | 5 years 6 months | ||
Common stock market price | $ 0.40 | $ 0.37 | $ 0.41 | |
Risk-free interest rate | 1.70% | 1.46% | ||
Expected volatility | 73.53% | 100.00% | ||
2011 Securities Purchase Agreement [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Expected term | 9 months | 1 year 6 months | ||
Common stock market price | $ 0.40 | $ 0.37 | $ 1.92 | |
Risk-free interest rate | 0.57% | 0.41% | ||
Expected volatility | 64.23% | 73.53% |
At the Market Offering Agreem30
At the Market Offering Agreement - Additional Information (Detail) - At-the-Market Equity Offering Program [Member] - USD ($) | 9 Months Ended | |
Dec. 31, 2015 | Nov. 04, 2015 | |
Subsidiary, Sale of Stock [Line Items] | ||
Proceeds from issuance of securities | $ 0 | |
Maximum authorized value of common stock issuance | $ 25,000,000 |
Basic and Diluted Net Income 31
Basic and Diluted Net Income (Loss) Per Share - Computation of Diluted Weighted Average Common and Potential Common Shares Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | ||||
Net income (loss) | $ 1,219 | $ 1,358 | $ (4,357) | $ (809) |
Denominator: | ||||
Weighted average shares used to compute basic loss per share | 73,469,571 | 64,488,798 | 73,469,571 | 64,240,446 |
Effect of dilutive share-based awards | 433,334 | 155,672 | ||
Denominator for diluted net income (loss) per share | 73,902,905 | 64,644,470 | 73,469,571 | 64,240,446 |
Basic income (loss) per share | $ 0.02 | $ 0.02 | $ (0.06) | $ (0.01) |
Diluted income (loss) per share | $ 0.02 | $ 0.02 | $ (0.06) | $ (0.01) |
Basic and Diluted Net Loss per
Basic and Diluted Net Loss per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Outstanding options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from the computation of diluted net income (loss) per share | 7,687,983 | 7,749,132 | 7,994,415 | 7,310,704 |
Outstanding warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from the computation of diluted net income (loss) per share | 7,031,305 | 2,540,918 | 7,031,305 | 2,540,918 |
Geographic and Product Line D33
Geographic and Product Line Data and Concentrations - Sales Attributed to Geographic Regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 65,038 | $ 30,451 | $ 116,930 | $ 69,665 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 47,002 | 9,573 | 79,003 | 22,281 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 16,702 | 17,825 | 32,000 | 37,104 |
APAC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 1,334 | $ 3,053 | $ 5,927 | $ 10,280 |
Geographic and Product Line D34
Geographic and Product Line Data and Concentrations - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | |
Customer Concentration Risk [Member] | Customer one [Member] | Gross Sales [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Customers accounted for revenue and accounts receivable, Percentage | 29.00% | 15.00% | 25.00% | 13.00% | |
Customer Concentration Risk [Member] | Customer two [Member] | Gross Sales [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Customers accounted for revenue and accounts receivable, Percentage | 14.00% | 11.00% | 15.00% | 10.00% | |
Customer Concentration Risk [Member] | Customer two [Member] | Maximum [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% | |
Customer Concentration Risk [Member] | Customer three [Member] | Gross Sales [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Customers accounted for revenue and accounts receivable, Percentage | 10.00% | 9.00% | |||
Credit Concentration Risk [Member] | Customer one [Member] | Accounts receivable [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Customers accounted for revenue and accounts receivable, Percentage | 35.00% | 14.00% | |||
Credit Concentration Risk [Member] | Customer two [Member] | Accounts receivable [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Customers accounted for revenue and accounts receivable, Percentage | 16.00% | 11.00% | |||
Credit Concentration Risk [Member] | Customer two [Member] | Maximum [Member] | Accounts receivable [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Customers accounted for revenue and accounts receivable, Percentage | 10.00% | 10.00% | |||
Credit Concentration Risk [Member] | Customer three [Member] | Accounts receivable [Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Customers accounted for revenue and accounts receivable, Percentage | 0.00% |
Geographic and Product Line D35
Geographic and Product Line Data and Concentrations - Summary of Sales by Platform (Detail) - Platform [Member] - Sales [Member] | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | ||||
Percentage of sales by platform | 100.00% | 100.00% | 100.00% | 100.00% |
Next gen consoles [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by platform | 79.00% | 21.00% | 71.00% | 19.00% |
PC and Mac [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by platform | 14.00% | 43.00% | 19.00% | 44.00% |
Universal [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by platform | 5.00% | 25.00% | 6.00% | 23.00% |
Smart devices [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by platform | 2.00% | 5.00% | 3.00% | 8.00% |
Legacy consoles [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by platform | 6.00% | 1.00% | 6.00% |
Geographic and Product Line D36
Geographic and Product Line Data and Concentrations - Summary of Sales by Product Category (Detail) - Product Category [Member] - Sales [Member] | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | ||||
Percentage of sales by product category | 100.00% | 100.00% | 100.00% | 100.00% |
Specialty Controllers [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by product category | 72.00% | 22.00% | 67.00% | 23.00% |
Audio [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by product category | 16.00% | 47.00% | 18.00% | 43.00% |
Mice and Keyboards [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by product category | 6.00% | 23.00% | 8.00% | 23.00% |
Accessories [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by product category | 4.00% | 4.00% | 3.00% | 4.00% |
Games and other [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by product category | 1.00% | 2.00% | 1.00% | |
Controllers [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by product category | 1.00% | 4.00% | 2.00% | 6.00% |
Geographic and Product Line D37
Geographic and Product Line Data and Concentrations - Summary of Sales by Brand (Detail) - Brand [Member] - Sales [Member] | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | ||||
Percentage of sales by brand | 100.00% | 100.00% | 100.00% | 100.00% |
Mad Catz [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by brand | 78.00% | 34.00% | 72.00% | 34.00% |
Tritton [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by brand | 15.00% | 44.00% | 17.00% | 39.00% |
Saitek [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by brand | 6.00% | 17.00% | 9.00% | 18.00% |
All others [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales by brand | 1.00% | 5.00% | 2.00% | 9.00% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Events [Member] - USD ($) $ in Millions | Feb. 05, 2016 | Mar. 31, 2016 |
Subsequent Event [Line Items] | ||
Reduction in number of positions | 37.00% | |
Severance costs | $ 3 |