I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community.
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Latest posts by Marie Martinez (see all)
- Earnings Results under Review: Himax Technologies Inc. (NASDAQ: HIMX) - November 30, 2019
- Hot Stock under Consideration: The Hackett Group Inc. (NASDAQ: HCKT) - November 30, 2019
- Hot Stock of the Day: Turtle Beach Corporation (NASDAQ: HEAR) - November 30, 2019
SAN DIEGO, November 30, 2019 – Shares of Turtle Beach Corporation (NASDAQ: HEAR) lost -0.24% to $8.40. The stock traded total volume of 220.957K shares lower than the average volume of 566.50K shares.
In the second quarter of 2019, Turtle Beach Corporation (HEAR) reported net revenue of $41.30M compared to $60.80M in the year-ago quarter. While consumer demand remains significantly above historic levels, this decrease was the result of the expected decline in demand from the record levels in the prior year driven by Battle Royale games. On a constant currency basis, revenue in the second quarter of 2019 was $42.00M.
Operating expenses in the second quarter of 2019 increased as planned to $15.50M from $12.00M in the 2018 period due primarily to $1.60M of ROCCAT transaction and related integration costs, incremental ROCCAT operating costs, sponsorships and digital marketing spend, and an increase in non-cash stock-based compensation.
Net loss in the second quarter of 2019 was $2.40M compared to a net loss of $2.30M in the year-ago quarter, which included an unrealized loss of $8.60M on a financial instrument obligation. Exclusive of this unrealized loss, the loss was driven by lower gross profit because of the decline in revenue and the increase in operating expenses, partially offset by a decline in interest expense.
Net loss per share in the second quarter of 2019 was $0.16 on 14.60M weighted average shares outstanding, compared to a net loss per share of $0.17 on 13.40M weighted average shares outstanding in the year-ago quarter.
Adjusted EBITDA in the second quarter of 2019 was $1.60M compared to $9.80M in the year-ago quarter.
Balance Sheet Highlights:
At June 30, 2019, the Company had $3.40M of cash and cash equivalents with $10.80M of outstanding debt under its revolving line of credit. This compares to $9.10M of cash and cash equivalents and $32.40M of outstanding debt at June 30, 2018. The year-over-year debt reduction primarily resulted from the Company’s improved operational performance, partially offset by the cash paid for the acquisition of the ROCCAT business in 2019.
HEAR has the market capitalization of $125.08M and its EPS growth ratio for the past five years was 27.80%. The return on assets ratio of the Company was 12.60% while its return on investment ratio stands at 69.80%. Price to sales ratio was 0.51 while 45.30% of the stock was owned by institutional investors.