Gaming peripheral maker Mad Catz announced a major shakeup to the company leadership the day before issuing its next financial earnings report. This is never a good sign and might be due to the big gamble it took on co-publishing Rock Band 4 with Harmonix
Mad Catz President and CEO Darren Richardson resigned Monday along with Chairman Thomas Brown and Senior Vice President of Business Affairs, Whitney Peterson. The company’s Chief Financial Officer, Karen McGinnis, will now serve as President and CEO.
“Looking ahead, we are confident that we have a talented leadership team in place that will enable us to steer the Company on a steady course in its operations and financial performance as we look to grow our business and reward our shareholders,” McGinnis stated in the press release.
The value of Mad Catz shares plummeted from $0.39 a share to $0.29 leading up to the announcement causing the NASDAQ to halt trading (via Seeking Alpha). The company’s stock price peaked at nearly $2.50 a share in 2011, but has been trading at around the $0.50 a share mark since 2012.
Of greater concern, is what the company will announce during its fiscal 2016 third quarter financial call on Tuesday at 5 p.m. ET / 2 p.m. PT. The company issued a letter to creditors last year stating (via Game Informer) that its financial stability hinged on the success of Rock Band 4. Mad Catz is the sole peripheral maker and co-publisher for the music game.
Mad Catz sales were boosted in the previous quarter by the launch of Rock Band 4, but the company still posted a net loss of $1.6 million. That represent a 75 percent greater loss than the same period in the previous fiscal year.
[Image via Harmonix]
- This article was updated on:February 21st, 2018