Corsair Gaming Reports Q3 Net Profit

Corsair Gaming Inc, a leading global provider, and innovator of high-performance gear for gamers and content creators, announced financial results for the third quarter ending on September 30th, 2021. Third-quarter highlights include:

• Net revenue was $391.1 million, a decrease of 14.4% year-over-year. Gamer and creator peripherals segment net revenue was $139.3 million, a decrease of 13.8% year-over-year. Gaming components and systems segment net revenue was $251.9 million, a decrease of 14.8% year-over-year.
• Net income was $1.8 million, or $0.02 per diluted share, compared to net income of $36.4 million in the same period last year, or $0.40 per diluted share.
• Adjusted net income was $16.3 million, or $0.16 per diluted share, compared to adjusted net income of $48.5 million in the same period last year, or $0.54 per diluted share.
• Adjusted EBITDA was $27.6 million, a decrease of 56.6% year-over-year.

“We refinanced our long-term debt in the third quarter, substantially reducing the interest rate, doubled the available revolver to $100 million, increased the term, and reduced the total outstanding debt by $24 million to $250 million of face value,” said Michael G. Potter, CFO of Corsair. “During the third quarter we experienced an increase in logistics costs over the already elevated rate in the second quarter, and costs and shipping times are expected to remain elevated for the remainder of 2021. Our strong financial position has allowed us to adjust to the current environment by increasing inventory and making longer-term supply chain commitments where needed.”

Corsair also revealed their expectations for the full year of 2021, which include:

• Net revenue to be in the range of $1.825 billion to $1.925 billion.
• Adjusted operating income to be in the range of $180 million to $195 million.
• Adjusted EBITDA to be in the range of $190 million to $205 million.

“We have responded to the difficult sourcing and shipping environment by building inventory in our hubs closer to our customers, but it has been difficult to pass costs on to our customers,” said Andy Paul, CEO of Corsair. “We still expect good growth for 2021, but the various challenges are constraining it to closer to our initial expectations for the year. We believe that the actual demand environment remains good and that once this difficult environment is behind us we can return to our targeted growth and profitability targets. We have adjusted our 2021 outlook based on the current conditions.”

(All information was provided by Globenewswire)