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- Peripherals manufacturer Turtle Beach reported net revenues of $46.7M USD for Q3 2019, down 37% from $74.4M in the same period in the previous year.
- The company more than doubled its total addressable market to $4.1B with the acquisition of German PC gaming accessory maker ROCCAT.
- Turtle Beach authorized a share repurchase up to $15M on Apr. 10, 2019, with about 206K shares being repurchased at a cost of $1.9M.
Last week, peripherals manufacturer Turtle Beach reported its Q3 2019 earnings. The company generated net revenues of $46.7M for the period ended Sept. 30., down 37% from $74.4M in the same period in the previous year.
Turtle Beach commented that it is slightly ahead of its revenues expectations. The company stated that the Q3 2019 period marks the highest third-quarter revenues other than 2018 (which was caused by a record number of new headset users driven by battle royale games last year).
Source: Turtle Beach Q3 2019 Earnings Report & NPD Group
According to Turtle Beach, it recently more than doubled its total addressable market (TAM) to $4.1B with the acquisition of German PC gaming accessory maker ROCCAT. Subsequently, a significant rise in PC accessories sales is attributed to its Atlas line and the addition of the ROCCAT portfolio.
The incremental ROCCAT operating and acquisition integration costs, as well as digital marketing and sponsorship initiatives, have been pointed out as the primary cause of Turtle Beach’s operating costs increase, which were up by $3.6M to $17.6M for the period. ROCCAT’s purchase price of $12.7M was funded with cash and borrowings under revolver.
Overall, the company generated a net loss of $3.1M or $0.22 loss per share compared to a net income of $14.9M in Q3 2018.
Furthermore, Turtle Beach authorized a share repurchase program of up to $15M. Since the share repurchase program was announced on Apr. 10, 2019, approximately 206K shares have been repurchased for $1.9M at an average price of $9.43 per share.
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