Rock Band 4 co-publisher Mad Catz has experienced a day of significant upheaval ahead of the publication of its latest financials.
Long standing president and CEO Darren Richardson, chairman Thomas Brown and senior vice president of business affairs Whitney Peterson have all resigned. CFO Karen McGinnis replaces Richardson, who has been in the position since 2004.
Mad Catz share price has fallen 25 per cent on the news.
In its most recent quarter (the three months ending September 30th 2015) the company reported a 73 per cent increase in net sales, although this couldn’t offset a 75 per cent increase in net losses. For the six months ending September 30th net losses were up 157 per cent.
In July 2015 auditor KPMG said there is a substantial doubt about Mad Catz’s ability to continue as a going concern”, although McGinnis asserted at the time that the company expected Rock Band 4 to give it the growth it needed to avoid trouble. Today’s news suggests this may not be the case.
In August Mad Catz’ global PR and communications boss Alex Verrey predicted that the Harmonix title would give the company a significant boost, outperforming previous releases in the series.
We recognize the tremendous value that Thomas, Darren and Whitney have brought to Mad Catz during their tenure and thank them for their many contributions throughout the years,” McGinnis said today.
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.”