SAN DIEGO, June 16, 2020 /PRNewswire/ -- Turtle Beach
Corporation (Nasdaq: HEAR), a leading gaming audio and
accessory provider, has increased its sales outlook for the quarter
ending June 30, 2020 based on
continued strong demand and significant additional increases in
product supply.
The Company now expects sales in the second quarter of 2020 to
range between $74 million and
$77 million, compared to $41.3 million reported in the second quarter of
2019. This would exceed the previous record of $60.8 million reported in the second quarter of
2018 by at least 21% when demand for console headsets was fueled by
battle royale games such as Fortnite. On May
7th, the Company provided an outlook for second
quarter 2020 sales between $42
million and $47 million.
"Although the second quarter has not yet ended, we now know that
based on sales already booked and current visibility on product
supply that our sales for the quarter will exceed the high end of
our earlier forecast by more than 55%," said Juergen Stark, CEO of Turtle Beach. "Consumer
demand for both console and PC gaming headsets and accessories has
remained stronger than expected. More importantly, our team has
been able to further increase supply and respond to changes in the
market with remarkable speed and agility.
"Our second quarter outlook from six weeks ago anticipated
retail demand normalizing during May and supply remaining highly
constrained despite the more than three-fold increase in factory
output we had already achieved. Retail demand has remained strong
and, we believe, sales have been highly limited by continuing
supply constraints, such that any increase in supply leads directly
to revenues and sell-through. We were able to further significantly
increase factory output and expedite deliveries into the second
quarter to achieve additional expected sales of at least
$27 million above our prior outlook.
We expect that strong operational execution as well as tight
coordination with our retail partners to productively allocate
supply will enable us to achieve record sales in the second quarter
of this year and, given our strong share position, for the overall
console headset market as well.
"Looking toward the balance of the year, while it remains
unclear the extent to which the current sales surge represents a
pull-forward of sales that might otherwise have occurred later in
the year, we anticipate being able to reflect all or most of the
increased second quarter revenue when we provide updated full-year
guidance as part of our next quarterly earnings report. We expect
to enter July with channel inventories still needing significant
replenishment. We also expect the higher revenues to drive higher
adjusted EBITDA for the quarter and the year, partially offset by
higher expediting costs incurred to achieve the incremental
sales."
The Company expects to update its full year outlook when actual
second quarter results are reported in early August.
About Turtle Beach Corporation
Turtle Beach
Corporation (www.corp.turtlebeach.com) is one of the world's
leading gaming audio and accessory providers, headquartered in
San Diego, CA. The Turtle Beach
brand (www.turtlebeach.com) is highly respected for its pioneering
first-to-market features and patented innovations in high-quality,
comfort-driven headsets for all levels of gamer, making it a
fan-favorite brand and the market leader in console gaming audio
for 10 years running. Turtle Beach's ROCCAT brand
(www.roccat.org) combines detail-loving German innovation with a
genuine passion for designing the best PC gaming products. Under
the ROCCAT brand, Turtle Beach creates award-winning keyboards,
mice, headsets, mousepads, and other PC accessories. Turtle Beach's
shares are traded on the Nasdaq Exchange under the symbol:
HEAR.
Cautionary Note on Forward-Looking Statements
This press release includes forward-looking information and
statements within the meaning of the federal securities laws.
Except for historical information contained in this release,
statements in this release may constitute forward-looking
statements regarding assumptions, projections, expectations,
targets, intentions or beliefs about future events. Statements
containing the words "may", "could", "would", "should", "believe",
"expect", "anticipate", "plan", "estimate", "target", "goal",
"project", "intend," "forecast" and similar expressions, or the
negatives thereof, constitute forward-looking statements.
Forward-looking statements involve known and unknown risks and
uncertainties, which could cause actual results to differ
materially from those contained in any forward-looking statement.
Forward-looking statements are based on management's current belief
and expectations, as well as assumptions made by, and information
currently available to, management.
While the Company believes that its expectations are based upon
reasonable assumptions, there can be no assurances that its goals
and strategy will be realized. Numerous factors, including risks
and uncertainties, may affect actual results and may cause results
to differ materially from those expressed in forward-looking
statements made by the Company or on its behalf. Some of these
factors include, but are not limited to, risks relating to the
substantial uncertainties inherent in the acceptance of existing
and future products, the difficulty of commercializing and
protecting new technology, the impact of competitive products and
pricing, general business and economic conditions including the
impact of the global coronavirus (COVID-19) pandemic on
consumer demands and manufacturing capabilities, risk relating to,
and uncertainly caused by or resulting from, the COVID-19 pandemic,
risks associated with the expansion of our business including the
integration of any businesses we acquire and the integration of
such businesses within our internal control over financial
reporting and operations, our indebtedness, the Company's
liquidity, and other factors discussed in our public filings,
including the risk factors included in the Company's most
recent Annual Report on Form 10-K, Quarterly Report on Form
10-Q, and the Company's other periodic reports. Except as
required by applicable law, including the securities laws of
the United States and the rules
and regulations of the Securities and Exchange Commission, the
Company is under no obligation to publicly update or revise any
forward-looking statement after the date of this release whether as
a result of new information, future developments or otherwise.
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SOURCE Turtle Beach Corporation