Mad Catz Interactive Inc (MCZ, Financial) filed Quarterly Report for the period ended 2010-09-30.
Mad Catz Interactive Inc has a market cap of $25.9 million; its shares were traded at around $0.47 with a P/E ratio of 6.7 and P/S ratio of 0.2. MCZ is in the portfolios of Jim Simons of Renaissance Technologies LLC.
The purchase price allocation for the acquisition of Tritton set forth below is preliminary and subject to change as more detailed analysis is completed and additional information with respect to the fair value of certain assets and liabilities acquired becomes available. During the three months ended September 30, 2010, based on new information obtained about the facts and circumstances that existed as of the acquisition date, acquisition date provisional values were adjusted to increase goodwill by $1.4 million, related to recording a deferred tax liability and $200 thousand related to a refinement in the value of the contingent consideration arrangement. Fair-value measurements have been determined based on assumptions that market participants would use in the pricing of the asset or liability. The Company expects to finalize the purchase price allocation within this fiscal year. The following table summarizes the consideration paid for Tritton and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (in thousands):
The $4.6 million purchase price for Tritton exceeded the value of the acquired tangible and identifiable intangible assets, and therefore the Company allocated $2.9 million to non tax deductible goodwill.
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Mad Catz Interactive Inc has a market cap of $25.9 million; its shares were traded at around $0.47 with a P/E ratio of 6.7 and P/S ratio of 0.2. MCZ is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
On May 28, 2010, the Company acquired all of the outstanding stock of Tritton Technologies Inc. (Tritton), a private corporation incorporated under the laws of Delaware. Tritton is in the business of designing, developing, manufacturing (through third parties in Asia), marketing and selling videogame and PC accessories, most notably gaming audio headsets. The Company acquired all of Trittons net tangible and intangible assets, including trade names, customer relationships and product lines. Cash paid for the acquisition was approximately $1.4 million, subject to a working capital adjustment currently estimated to be $947,000. The Company is required to make additional cash payments to former Tritton share holders of up to an aggregate of $8.7 million based on the achievement of certain specified performance measures over a five year period. As a result of the acquisition, Tritton became a wholly-owned subsidiary of the Company and accordingly, the results of operations of Tritton are included in the Companys consolidated financial statements from the acquisition date. The Company financed the acquisition through borrowings under the Companys working capital facility. The acquisition was done in order to expand the Companys product offerings in the high growth gaming audio market and to further leverage the Companys assets, infrastructure and capabilities.The purchase price allocation for the acquisition of Tritton set forth below is preliminary and subject to change as more detailed analysis is completed and additional information with respect to the fair value of certain assets and liabilities acquired becomes available. During the three months ended September 30, 2010, based on new information obtained about the facts and circumstances that existed as of the acquisition date, acquisition date provisional values were adjusted to increase goodwill by $1.4 million, related to recording a deferred tax liability and $200 thousand related to a refinement in the value of the contingent consideration arrangement. Fair-value measurements have been determined based on assumptions that market participants would use in the pricing of the asset or liability. The Company expects to finalize the purchase price allocation within this fiscal year. The following table summarizes the consideration paid for Tritton and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date (in thousands):
The $4.6 million purchase price for Tritton exceeded the value of the acquired tangible and identifiable intangible assets, and therefore the Company allocated $2.9 million to non tax deductible goodwill.
Read the The complete Report
