In the last few hours, the Corsair Gaming company reported its financial results for the second quarter of 2022
Corsair Gaming, Inc. (click here for more info on the company “Corsair”), is an American computer hardware and peripheral company based in Fremont, California. Designs and sells a range of computer products, including high-speed DRAM modules, ATX power supplies (PSUs), USB flash drives (UFDs), CPU / GPUs and case cooling, gaming peripherals (such as computer keyboards and mice), solid state drive (SSD) and speakers. The manufacturing plant in Taoyuan city, Taiwan deals with assembly, testing and packaging of selected products. With distribution centers in North America, Europe and Asia and sales and marketing offices in major world markets.
Statements regarding Corsair's second quarter 2022 financial results
Corsair, the world's leading provider and innovator of high-performance equipment for gamers and content creators, today announced financial results for the quarter ended June 30, 2022. Andy Paul, Chief Corsair CEO stated that:
Headwinds from the first quarter persisted throughout the second quarter, which is the lowest seasonal quarter for us, with macroeconomic headwinds impacting consumer spending on gaming equipment. Especially in Europe. Combined with global inflation, the ongoing conflict between Russia and Ukraine, and high transport costs. This has resulted in a build-up of inventory in both our warehouses and the retail channel, causing our channel partners to delay the order as they empty inventory.
Andy Paul, he then continued his statement stating that:
Despite the challenging environment, we continue to see positive underlying growth trends in the gaming hardware sector and see spending levels significantly above pre-pandemic levels. We're also starting to see more enthusiasts building gaming PCs again as graphics cards are now more readily available at reasonable prices. We saw very positive signs during the Amazon Prime week. With significantly higher component activity than in 2021, both in Europe and the United States. While we are disappointed with the lower second quarter results, we are very pleased to see positive market activity recently. Additionally, with our channel inventory returning online during the second and third quarters of 2022, we expect a good recovery in demand for our products at the end of the year. I look forward to an exciting 2023.
Highlights of the second quarter of 2022
Net revenues were 283,9 million dollars, in line with the Company's preliminary revenues provided on July 21, 2022. Net revenues were $ 380,7 million in the first quarter of 2022 and 472,9 million dollars in the second quarter of 2021. The sequential and year-over-year decline reflect the negative impact of macroeconomic headwinds affecting consumer spending on gaming gear, especially in Europe, and a correction in the channel's inventory.
- Revenue for the gamer and creator peripherals segment was 89,0 million compared to 134,1 million in the first quarter of 2022 and $ 155,2 million in the second quarter of 2021.
- Instead, revenue from the gaming components and systems segment was 194,9 million compared to 246,5 million in the first quarter of 2022 and $ 317,7 million in the second quarter of 2021.
- The operating loss was $ 55,0 million compared to the operating loss of 2,5 million in the first quarter of 2022 and the operating profit of 34,7 million in the second quarter of 2021.
- While the diluted net loss per share was 0,62 compared to the diluted net loss per share of 0,05 in the first quarter of 2022 and the diluted net earnings per share of 0,28 in the second quarter of 2021.
- Adjusted EBITDA was a loss of 11,0 million compared to 15,4 million in the first quarter of 2022 and 51,6 million in the second quarter of 2021.
Investments in the development of innovative products
Michael G. Potter, Corsair's Chief Financial Officer, said:
We have already taken action to adjust to the lowest revenue level in the first half of 2022 and our expectations for the rest of the year. We took proactive action to reduce operations expenses and adjusted product orders and took a $ 19,5 million reserve against potential inventory surpluses. in the second half of 2022.
Then continuing his own statement, stating that:
Despite the headwinds we have faced, we have continued to invest in product development and have and will continue to release innovative products and what we believe to be industry leaders.
These are the company's prospects for the entire year 2022:
- Net revenue will be between 1,35 billion and 1,45 billion.
- Adjusted operating income must be between 35 million and 50 million.
- EBITDA adjusted to be included between 50 million and 65 million.
The company claims that:
Some non-GAAP measures included in our financial perspectives have not been reconciled with comparable GAAP financial measures because GAAP measures are not accessible on a forecast basis. We are unable to reconcile these forward-looking non-GAAP financial measures with the more directly comparable GAAP measures without unreasonable effort. This is because we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items. Items that should impact GAAP measures for these periods, but would not affect non-GAAP measures. These items may include stock-based clearing charges, depreciation, inventory write-down expenses, and other items. Unavailable information could have a material impact on our GAAP financial results.
The previous forward-looking statements reflect our expectations as of today. Given the number of risk factors, uncertainties and assumptions discussed below, actual results could differ materially. We do not intend to update our financial perspectives until the next quarterly results announcement.
Corsair's first groundbreaking gaming and streaming laptop unveiled, CORSAIR VOYAGER a1600 AMD Advantage Edition. A combination of a powerful processor AMD Ryzen 6000 series and mobile graphics AMD Radeon RX6800M with CORSAIR. And finally, the addition of Elgato's vast ecosystem of exclusive software and technologies. The CORSAIR VOYAGER a1600 AMD Advantage Edition laptop is designed for aspiring content creators, avid gamers, full-time streamers and so on. And again, announced REVENGE RGB DDR5, the latest addition to Corsair's range of cutting-edge DDR5 memory. These, optimized for the latest gaming PCs and workstations to deliver sensational DDR5 performance with stunning RGB style.
More news on the way
The company announced it is working with NVIDIA to integrate key features of the NVIDIA broadcast in the software CORSAIR iCUE, Elgato Wave Link and Elgato Camera Hub. For owners of NVIDIA GeForce RTX graphics cards, NVIDIA Broadcast AI effects enhance microphones and cameras in real time. This is to improve the gaming, streaming and videoconferencing experience, all controllable from the CORSAIR and Elgato software interfaces. Also expanded its family of gaming monitors CORSAIR XENEON with two new additions. CORSAIR XENEON 32UHD144 e XENEON 32QHD240, with stunning UHD 4K or QHD gaming resolution with an incredibly smooth 240Hz refresh rate. Both monitors offer the beautiful design, brilliant display and innovative technologies.
And you? What do you think of these data relating to Corsair's financial results for the second quarter of 2022, And the new range of products in progress? Let us know with a comment and stay tuned to Road4Gamers for more news and reviews from the world of technology (and more!).(on offer on amazon.com) Don't miss it! Intel Core i9-11900K - Processor (base frequency: 3,5 GHz Tuboboost: 5,1 GHz, 8 cores, LGA1200) BX8070811900K Intel 500 series chipset .; Base frequency: 3,5 GHz. Tuboost: 5,1 GHz .; LGA1200 .; 8 core. EUR 515,94 −24% EUR 394,42