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Mad Catz reports $11M loss following bad Rock Band 4 deal

Mad Catz has had a rough year, noting today in a full-year earnings report that it lost $11.6 million (down from a $4.7 million profit the year prior) despite a 55 percent uptick in sales.

Mad Catz has had a rough twelve months, posting a full-year earnings report today that includes an $11.6 million loss for the year (down from a $4.7 million profit the year prior) despite a 55 percent uptick in sales year-over-year.

Notably, the video game hardware vendor also reports it has until September 6th to "sell remaining $8.3 million of Rock Band 4 inventory" as part of 120-day wind-down period related to it severing ties with Harmonix as co-publisher of last October's Rock Band 4.

Mad Catz also reported $6.8 million in "charges related to Rock Band 4 for inventory write-downs, material authorizations and price reductions with retailers" during the fourth quarter of its 2016 fiscal year, which ended March 31st. 

Harmonix inked a Rock Band 4 co-publishing deal with PDP earlier this year to replace Mad Catz, which saw underwhelming returns from the project and wound up laying off over a third of its staff in February as part of a major cost-cutting iniative.

"We completed a significant restructuring program that will save the Company approximately $6 to $7 million on an annualized basis," stated Mad Catz CFO David McKeon in the company's full-year earnings report. " While there is much work to be done and we continue to have working capital constraints, we are confident that Fiscal 2017 will benefit from the Company’s recent efforts.”

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