Mad Catz In Trouble After Shares Plummet And CEO Resigns

Mad Catz is best known for creating various peripherals including keyboards, mice, headsets and more while adopting a very distinctive style. This gives their product range a unique aesthetic, and makes anything they produce instantly recognizable. Whether many of these complicated constructions are as comfortable as more simplistic solutions is topic up for discussion. Not only that, creating any mass market product involves a great deal of research and development. Furthermore, competition within the peripherals market is fierce with Corsair, Roccat, Logitech, Mionix, Cooler Master and more all vying for people’s hard earner cash. As a result, the financial situation at the company looks very bleak and their share value has fallen by more than 25% today!

On another note, Mad Catz announced some sweeping changes to the management team. Firstly, the company’s president and CEO, Darren Richardson resigned his position with immediate effect. In a similar fashion, the chair of the board of directors and member of the board’s audit committee, Thomas Brown resigned on Friday. That’s not the end though as Mad Catz’s senior vice president of business affairs, general counsel and corporate secretary, Whitney Peterson also handed in her resignation. The timing for the CEO’s resignation is quite worrying and comes just one day before Mad Catz’s financial reports are published. The company released a statement describing these changes which reads:

“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,”

“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.”

Clearly, the company’s financial standing is in disarray and I’m expecting the results to tomorrow to be alarming. Only time will tell if Mad Catz struggles to remain in business, but the picture so far doesn’t look very promising.

Have you had a positive experience with Mad Catz hardware?

Is HTC About to Go Under?

It seems like an age since HTC was the world’s smartphone market leader, long since usurped by Apple, Samsung, and Chinese upstarts Huawei and Xiaomi, and a horrendous crash in its stock value seems destined to cement the company’s position as the new Nokia.

HTC’s market price plummeted to NT$47 billion ($1.5 billion) on Monday, less than the NT$47.2 billion cash it boasted in June. Though the drop seems small, it marks a massive 9.8% fall in stock, signifying that investors consider the rest of the company has no value. As Calvin Huang of Sinopac Financial Holdings Co. in Taipei puts it, “HTC’s cash is the only asset of value to shareholders. Most of the other assets shouldn’t be considered in their valuation because there’s more write-offs to come and the brand has no value.” Sinopac has put an NT$46.50 price target on HTC’s shares.

HTC’s market capitalisation has been on the decline since 2011, during which year it exceeded NT$900 billion, and efforts to revitalise its brand with the One, Butterfly, and Desire smartphone models over the last four years have failed, leaving the manufacturer outside the top-10 smartphone producers in the world for the first time. Current sales are down 75% on its 2011 heyday.

Hopes of a recovery look increasingly slim, with third-quarter forecasts suggesting sales could fall to below 48% of estimates, leaving HTC taking a 35% cut to its projected earnings. Analysts are now predicting that the company’s bad luck will continue until at least 2017, forecasting two years of no profit.

“We think these efforts are not enough to turn HTC around in the next two years,” said Birdy Lu, analyst with Deutsche Bank AG. “HTC has little chance to compete with iPhone and Samsung given limited resources, and might continue to lose shares to Chinese brands in mid/low-end segment.”

If current trends continue, HTC could be not long for this world.

Thank you Bloomberg for providing us with this information.

Apple Has $202 Billion in Cash – Shares Dip 10%

Apple has earned $202 billion in cash alone – more than any other company – but the tech giant has taken a huge hit on Wall Street. Despite crossing the $200 billion in cash mark for the first time, shares in Apple dipped by as much as 10% this week following a worse-than-expected projection for the latest quarter of 2015. A mixed period has seen iPhone sales down, while growth in China has doubled, and Apple Watch sales are as-of-yet undisclosed.

Apple’s cash haul compares favourably to its closest market rival; Google – producer of the Android mobile operating system – earned $62 billion in cash and marketable securities during the last quarter. Apple’s $202 billion in cash, though, carries some risks. Two Apple shareholders in particular – Carl Icahn and David Einhorn – have been pushing the company to reduce its cash hoard, wanting it to convert it instead into assets. The US taxman is also side-eying Apple’s piggybank, since $158 billion of it is banked overseas, and so out of its jurisdiction.

Despite the promising news of Apple’s growth in China, the country has been hit recently by a financial crisis, with fears that its stock market crash could have a knock-on effect on the company’s trading there. “We remain extremely bullish on China, and we continue to invest. Nothing that has happened has changed our fundamental view that China will be Apple’s largest market at some point in the future,” Apple CEO Tim Cook said. “We are not changing anything. We have our pedal to the metal.”

Thank you Mashable for providing us with this information.

GAME Retail Group May Return To The Stock Market

It was only 18 months ago that GAME were in serious financial trouble, they shut hundreds of stores, lost many employees, they were dead in the water. However, Financier Henry Jackson did a fantastic job at returning the company to glory and while some hard decision were made at the start, now the company is opening new stores, earning money again and even thinking about heading to the stock market.

An IPO is being considered as investors seek an exit from the retail chain, news that hits at a perfect time as the store is hoping to record new records with the launch of two new games consoles. Although neither GAME or Henry are willing to comment on such rumours at this time.

According to An industry source the Daily Telegraph claim he is looking to float the company at £100-200 million, most likely after the new consoles launched.

Profits hit £15 million in 2011-2012, the last set of published figures, and the chain is targeting £40 million in the current 2013-2014 financial year. It is good news for Jackson, who is a director at Capitex Holdings, the owner of Game, and one can only suspect they’re looking for a big win after the flop that was the Comet retail chain.

Thank you Telegraph for providing us with this information.