|From: Savant||8/6/2015 7:12:32 PM|
|SAN DIEGO, Aug. 6, 2015 /PRNewswire/ -- Turtle Beach Corporation ( HEAR) (NASDAQ: HEAR), the leading-edge audio technology company, today announced financial results for the second quarter ended June 30, 2015.|
Highlights & Developments:
"We've made great progress over the past months on several important initiatives which we believe position the Company for long-term success," said Juergen Stark, Chief Executive Officer, Turtle Beach Corporation. "We strengthened our portfolio of leading next generation compatible gaming headsets with the introduction of multiple new innovative products. This holiday season we expect to once again have the broadest, most advanced offering of Xbox One and PlayStation 4 headsets available in the market which will help offset the continued decline in demand for previous generation products. With regard to HyperSound Clear, early feedback has been overwhelmingly positive, which bodes well for us as we prepare to commercially launch this first-of-its-kind directed audio solution for people with hearing loss later this year. Further, we've recently announced multiple distribution partnerships with the nation's leading hearing healthcare groups that service and provide product to the majority of audiologists and hearing healthcare professionals across the U.S. Finally, following the end of the quarter in July 2015, we secured $15 million in financing, which along with the related amendment to our sub-debt, provides us with $28.8 million in long-term debt in addition to our $60 million working capital line. With our improved capital structure in place, we are now better positioned to fund our annual working capital needs and focus on capitalizing on the many high value growth opportunities that exist for both of our businesses."
- Increased net revenue 1.4% year-over-year to $22.6 million, including over 70% growth in next generation gaming headsets
- Produced four of the top five third party Xbox One gaming headsets and three of the top five third party PlayStation®4 gaming headsets when measured by dollar share in the U.S. according to NPD
- Announced partnerships with several of the nation's largest hearing healthcare groups for distribution of HyperSound Clear"
- Secured new $15 million term loan and favorably amended existing subordinated debt in July 2015
Second Quarter Review
Net revenue in the second quarter increased 1.4% to $22.6 million compared to $22.3 million a year ago. The increase was attributable to a 9.6% gain in domestic sales driven primarily by strong consumer response to the Company's expanded portfolio of next generation compatible headsets. This was partially offset by an overall decline in sales of previous generation headsets and softer international sales due to a highly promotional environment and continued overall market challenges due to the strong U.S. dollar.
Gross profit for the second quarter was $3.4 million, compared to $4.8 million in the same period in 2014. Gross margin was 15.0% in the second quarter of 2015 compared to 21.7% in the second quarter of 2014. The decline was driven by incremental promotional credits in order to continue clearing previous generation and licensed headset inventory and modest additional contract manufacturer transition costs, which reduced gross margins by approximately 700 basis points.
Operating expenses for the second quarter were $16.0 million compared to $14.0 million in the same period in 2014. The increase in operating expenses was primarily attributable to higher costs associated with additional headcount, higher legal fees, incremental stock compensation expense and investments in personnel and product development of the Company's HyperSound ® technology. This was partially offset by lower selling and marketing expenses due to lower trade show spend as a result of a strategic shift to more targeted promotional activity and savings related to the termination of certain licensing agreements.
The Company reported a net loss for the second quarter of $9.9 million, or $(0.23) per diluted share based on 42.2 million average shares outstanding, compared to net loss of $9.3 million or $(0.23) per diluted share based on 40.8 million average shares outstanding in the same period a year ago.
Adjusted EBITDA (as defined below) for the headset business totaled approximately $(5.2) million in the second quarter compared to $(4.7) million in the second quarter of 2014. Adjusted EBITDA on a consolidated basis was $(8.2) million, reflecting investments of approximately $3.0 million in the HyperSound business during the quarter.
Balance Sheet Review
The Company ended the second quarter with approximately $3.0 million in cash and cash equivalents. This compares to cash and cash equivalents of $7.9 million as of December 31, 2014 and $9.0 million on the same date a year ago. Total inventory as of June 30, 2015 was $37.3 million, compared to $37.5 million on the same date a year ago and a 2.8% decrease compared to $38.4 million on December 31 2014.
Outstanding debt at June 30, 2015 decreased 24.1%, or $10.7 million, to $33.8 million compared to $44.6 million at December 31, 2014. The debt consisted of $14.8 million of borrowings under the Company's Credit Facility, a $7.1 million term loan and $11.9 million of subordinated debt. Following the end of the quarter, we announced a new $15 million term loan with Crystal Financial, LCC, and amendments to our outstanding subordinated debt held by affiliates of Stripes Group LLC.
For the third quarter 2015, the Company expects net revenue for our headset business in the range of $30 million to $35 million with the variance driven by the timing of initial holiday sell-in which starts in late September and can result in some shipments moving between Q3 and Q4. Net loss for the third quarter is projected to be between $(4.5) million and $(7.5) million and adjusted EBITDA is expected to be between a loss of $(1.0) million to $(5.0) million which includes approximately $4 million in planned HyperSound investment. Adjusted EBITDA for the headset business is expected to be between break even and $3.0 million.
For the full year 2015, the Company still expects headset revenue to be approximately flat compared to 2014. As a reminder, this projection is highly dependent on the projected rate of growth of the Company's next generation headsets versus the decline of its previous generation headsets and the potential negative impact of the strong U.S. Dollar both of which have pressured results somewhat more than expected in the first half. Adjusted headset EBITDA margins are still expected to be in the 8% to 9% range compared to 6.5% in 2014, with gross margins improving into the low 30% range for the full year 2015. On an adjusted EBITDA level, the Company is managing its net investment in HyperSound with a goal not to exceed $9 million in 2015, subject to the launch timing of HyperSound Clear.
Conference Call Details
Turtle Beach Corporation CEO and CFO, Juergen Stark and John Hanson, will host a conference call and simultaneous webcast to discuss the second quarter 2015 financial results and review the Company's outlook for the third quarter and full year 2015 today, August 6, 2015 at 1:30 p.m. PDT / 4:30 p.m. EDT.
To participate in the conference call, investors should dial (877) 303-9855 (domestic) or (408) 337-0154 (international), and provide the pass code 90857550, 10 minutes prior to the scheduled start of the call. A simultaneous audio-only webcast of the call may be accessed at www.turtlebeachcorp.com. An archive of the webcast will be available on the Company's website for approximately one year, and a recorded replay of the call will be available for one week at (855) 859-2056 and (404) 537-3406 and entering conference ID number 90857550.
Non-GAAP Financial Measures
In addition to its reported results, the Company has included in this earnings release certain financial results, including Adjusted EBITDA that the Securities and Exchange Commission defines as "non-GAAP financial measures." Management believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company's results. "Adjusted EBITDA" is defined by the Company as net income (loss) before interest, taxes, depreciation and amortization, stock-based compensation (non-cash), and certain special items that we believe are not representative of core operations. Please see a reconciliation of GAAP results to Adjusted EBITDA, which is included below for the three and six months ended June 30, 2015 and 2014.
The Adjusted EBITDA outlook for the third quarter and full year 2015 have not been reconciled to our net loss outlook for the same periods because certain items that would impact interest expense, provision for income taxes and stock-based compensation, which are reconciling items between net loss and Adjusted EBITDA, cannot be reasonably predicted. Similarly, we have not reconciled our constant currency sales outlook for the full year 2015 to net revenue because applicable foreign currency exchange rates cannot be reasonably predicted. Accordingly, reconciliation of Adjusted EBITDA outlook to net loss outlook for the third quarter of and full year 2015, and of constant currency sales outlook to net revenue outlook for the full year 2015, is not available without unreasonable effort.
About Turtle Beach Corporation
Turtle Beach Corporation ( www.turtlebeachcorp.com) designs leading-edge audio products for the consumer, commercial and healthcare markets. Under the Turtle Beach brand ( www.turtlebeach.com), the Company markets a wide selection of quality gaming headsets catering to a variety of gamers' needs and budgets, for use with video game consoles, including officially licensed headsets for the Xbox One and PlayStation 4, as well as for personal computers and mobile/tablet devices. Under the HyperSound brand ( www.hypersound.com), the Company markets pioneering directed audio solutions that have applications in digital signage and kiosks, consumer electronics and healthcare. The Company's shares are traded on the NASDAQ Exchange under the symbol: HEAR.
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. Forward looking statements are based on management's statements containing the words "may", "could", "would", "should", "believe", "expect", "anticipate", "plan", "estimate", "target", "project", "intend" and similar expressions 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, 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, the substantial uncertainties inherent in 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, risks associated with the expansion of our business including the implementation of any businesses we acquire, our indebtedness, 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 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 any 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.
|RecommendKeepReplyMark as Last Read|
|From: Savant||8/12/2015 6:28:15 PM|
|Juergen Stark discloses he bought 46.5K Turtle Beach ( HEAR -1.8%) shares at $2.15 yesterday, bringing his total stake to 86.5K.The purchase followed the gaming headset maker's Aug. 6 Q2 miss. In spite of the Q2 shortfall, Turtle Beach has reiterated guidance for full-year headset revenue to be roughly flat Y/Y, and for an 8%-9% adjusted EBITDA margin. Aided by seasonality, revenue is expected to rise to $30M-$35M in Q3 from Q2's $22.6M.|
|RecommendKeepReplyMark as Last Read|
|From: Savant||10/15/2015 10:21:34 AM|
|Turtle Beach Corporation Changes The Landscape Of Hearing Healthcare And Home Entertainment With HyperSound ClearCompany Announces Upcoming Launch of its Breakthrough Directed Audio Product Shown to Significantly Improve Sound Clarity and Speech Intelligibility for People Living with Hearing Loss for a Better Home Entertainment Experience|
For a Limited Time, Turtle Beach is Offering Complimentary White Glove Installation Service for Each HyperSound Clear Unit Sold in the U.S.
SAN DIEGO, Oct. 15, 2015 /PRNewswire/ -- Turtle Beach Corporation ( HEAR), the leading-edge audio technology company, today announced it will begin fulfilling initial orders for its breakthrough hearing healthcare device, HyperSound Clear™, in the next three weeks, and that the product
will be available to purchase through hearing healthcare providers for a MSRP of $1,675.HyperSound® technology is a fundamentally new approach to sound delivery that generates a highly directional, narrow beam of audio in the air. Similar to how a flashlight directs a beam of light, HyperSound Clear directs a beam of audio to targeted listeners, which has been shown to significantly improve sound clarity and speech intelligibility in individuals with hearing loss1. HyperSound Clear works in parallel with the audio from the TV or home theater system, so a person with hearing loss will experience immersive, 3D audio when sitting in the HyperSound beam, while everyone else in the room hears audio from the TV speakers or home theater system at a normal volume level. This means that people with hearing loss, along with family members and friends, can once again return to the family room to enjoy the latest home entertainment together.
Additionally, through their partnership with CaptionCall® Turtle Beach is offering complimentary white glove installation for a limited time for each HyperSound Clear unit sold in the U.S., where the Company will ensure the first-of-its-kind directed audio solution for people with hearing loss is installed and setup for the optimal home listening experience.
"We're extremely pleased to get this truly amazing new product launched, as we believe it will improve the quality of life for people living with hearing loss," said Rodney Schutt, SVP and General Manager for the HyperSound business at Turtle Beach Corporation. "With nearly 50 million people in the U.S. and 360 million people around the world with hearing loss, and approximately 80% of patients specifically telling their hearing healthcare providers they're having trouble hearing and understanding the TV, we know there's a significant audience of people who can benefit from adding HyperSound Clear into their home entertainment setup."
With strong initial pre-orders, Turtle Beach will begin a staged roll-out of the first shipments of HyperSound Clear units to its partners – some of the biggest companies in hearing healthcare, including American Hearing Aid Associates, Audiology Management Group, Inc., Amplified Resource Group, LLC, AuDConnex, Battery Benelux BV, Beltone New England and Fuel Medical Group, LLC. Consumers interested in purchasing HyperSound Clear should speak with their hearing healthcare provider for availability details. Additionally, HyperSound Clear is customizable for up to two individuals, and will be programmed by a hearing healthcare professional to a specific user's hearing profile to deliver optimal results. Once purchased, programmed and brought home, patients in the U.S. will be contacted by a member from CaptionCall to schedule the complimentary in-home installation.
In a third-party/internal study2 conducted during HyperSound Clear's development, 58 adults were provided an opportunity to participate in a demonstration of the product, with intriguing results. In a simulated at-home listening environment in the unaided condition, a substantial majority of participants reported HyperSound Clear enhanced both their overall listening experience and speech recognition ability for television viewing. When asked how much they liked their overall experience with HyperSound Clear, nearly 70% of subjects in the study rated the overall listening experience to be either a 4/5 or 5/5. When asked how much HyperSound Clear improved their ability to hear and understand speech, the results were similar, this time with nearly 80% of subjects in the study giving a rating of either 4/5 for ("marked improvement"), or 5/5 for ("tremendous improvement").
"One of the main joys of being a doctor is knowing you're helping people, and my favorite part of working with the team at Turtle Beach on HyperSound Clear has been those moments shared with patients when they experience the immediate results of hearing clearly," said Dr. Mehta3, Founder and Medical Director of the California Hearing & Balance Center. "Looking beyond the scientific evidence, the human reaction is all I need to see to know it works. I've witnessed the full range of patients' emotions reacting to HyperSound Clear. Whether they become instantly giddy and smile and laugh or are overcome with emotion, no matter which way you slice it, you know they are having a life-changing experience by being able to hear the television clearly again."
Dr. Mehta continued, "This is a significant step not only for individuals with hearing loss, but for our industry as a whole because one of the biggest obstacles we face is the approximate 10 year gap between when someone first notices a problem with their hearing and when they obtain hearing aids. Unfortunately, although difficulty hearing and understanding the TV is an early sign of hearing loss, most people simply choose to turn-up the volume as opposed to seeking help. When you add HyperSound Clear as an all-new, gateway product that directly addresses the issue of hearing and understanding the TV as an alternative option for those who choose not to purchase hearing aids, it certainly has the potential to shorten the aforementioned 10 year gap. This is because people will sooner realize the significant improvement in speech intelligibility can also be achieved in everyday listening environments by adopting hearing aids. That's why HyperSound Clear is such a refreshing, technological breakthrough for hearing healthcare as a whole."
"The moment we first experienced HyperSound, we instantly recognized its potential and jumped at the opportunity to acquire the technology, knowing full-well we could leverage our 40 years of audio commercialization expertise to bring this groundbreaking, new type of audio product to multiple markets," said Juergen Stark, CEO, Turtle Beach Corporation. "Since January 2014, we've focused on bringing HyperSound Clear to the hearing healthcare market as a first major consumer opportunity for the technology, with the goal of recreating that home entertainment environment that everyone with and without hearing loss can enjoy together again."
Hearing loss is a growing, widespread issue that impacts people of all ages and often carries with it serious implications for one's health, relationships, and overall well-being. As people initially begin to lose their hearing, they inevitably rely on increasing the TV volume to compensate. Unfortunately, this has the potential to create a divide in the household, as most people don't want to be in the same room watching TV with somebody with hearing loss when the volume is cranked-up. A nationwide survey4 of nearly 4,000 adults and their significant others shows a considerably higher rate of depression, anxiety, and other psychosocial disorders in adults with untreated hearing loss.
Researchers estimate that one in five Americans, and one in three people over age 65, suffer from hearing loss. Impacting over 48 million Americans, hearing loss is the third most common chronic physical condition in the United States. An estimated 360 million people worldwide suffer from some form of hearing loss, and HyperSound Clear is on the verge of offering a new way for people with hearing loss to once again enjoy home entertainment.
To learn more about HyperSound technology and HyperSound Clear, please visit the official website at http://hypersoundhearing.com.
About Turtle Beach Corporation
Turtle Beach Corporation ( www.turtlebeachcorp.com) designs leading-edge audio products for the consumer, commercial and healthcare markets. Under the Turtle Beach brand ( www.turtlebeach.com), the Company markets a wide selection of quality gaming headsets catering to a variety of gamers' needs and budgets, for use with video game consoles, including officially-licensed headsets for the Xbox One and PlayStation®4, as well as for personal computers and mobile/tablet devices. Under the HyperSound brand ( www.hypersound.com), the Company markets pioneering directed audio solutions that have applications in digital signage and kiosks, consumer electronics and healthcare. The company's shares are traded on the NASDAQ Exchange under the symbol: HEAR.
|RecommendKeepReplyMark as Last Read|
|From: Savant||10/15/2015 11:48:16 AM|
|'Experience' the Beam.... hypersoundhearing.com|
*Mehta, RP. Novel ultrasonic sound carrier significantly improves speech discrimination in subjects with hearing loss. Otology/Neurotology Scientific Session presented at the Combined Sections Meeting of the Triological Society. January 22, 2015, San Diego, CA (Ten patients with mild to severe hearing loss in a single-blind, randomized cross over study demonstrated improvement in sound clarity, measured with standard speech tests, over conventional speakers at 70 dB at 1 meter, including in background noise.)
*The 'party trick' comes to life....
|RecommendKeepReplyMark as Last Read|
|From: Savant||2/9/2016 3:15:33 AM|
|SAN DIEGO, Feb. 5, 2016 /PRNewswire/ -- Turtle Beach Corporation (NASDAQ: HEAR), a leading audio technology company, has successfully closed its previously announced underwritten public offering of 5,000,000 shares of its common stock at a price to the public of $1.00 per share (the Offering) and its separate, concurrent, side-by-side private placement of 1,700,000 shares of its common stock at a price of $1.00 per share (the Private Placement). Turtle Beach will receive approximately $6.2 million in net proceeds from the Offering and the Private Placement.|
Insiders purchased an aggregate of $3.15 million of common stock in the Offering and the Private Placement. SG VTB Holdings, LLC, Turtle Beach's largest stockholder; Ronald Doornink, Turtle Beach's Chairman of the Board; and Juergen Stark, Turtle Beach's Chief Executive Officer; purchased an aggregate of 1.45 million shares of common stock in the Offering, and SG VTB Holdings, LLC purchased an additional 1.7 million unregistered shares of common stock in the Private Placement.
Turtle Beach will use all net proceeds from the Offering and the Private Placement for working capital and general corporate purposes, including applying such proceeds against the outstanding principal balance of its working capital line of credit with Bank of America (the Line of Credit) as required by the terms of the amendments to the Company's credit documents entered into on February 1, 2016 which, among other things, provide that on or prior to February 5, 2016, Turtle Beach receive net proceeds of not less than $6.0 million of additional capital and apply such proceeds against the Line of Credit.
The securities sold in the Offering described above were offered by the Company pursuant to a registration statement on Form S-3 which was filed with the Securities and Exchange Commission (SEC) and became effective on May 16, 2013.
Oppenheimer & Co. Inc. acted as the sole book-running manager, and Lake Street Capital Markets acted as co-manager for the Offering.
This press release does not constitute an offer to sell these securities or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Copies of the prospectus supplement and accompanying prospectus may be obtained from Oppenheimer & Co. Inc., 85 Broad Street, 26(th) Floor, New York, NY 10004, Attn: Syndicate Prospectus Department, by calling (212) 667-8563, by email to EquityProspectus@opco.com or by accessing the SEC's website at www.sec.gov.
About Turtle Beach Corporation
Turtle Beach Corporation (http://corp.turtlebeach.com) designs innovative, market-leading audio products for the consumer, healthcare and commercial sectors. Under its award-winning Turtle Beach brand (www.turtlebeach.com), the Company has been the clear market share leader for the past five-plus years with its wide selection of acclaimed gaming headsets for use with Xbox One and PlayStation(R) 4, as well as personal computers and mobile/tablet devices. Under the HyperSound brand (www.hypersound.com), the Company markets pioneering directed audio solutions that have applications in hearing healthcare, digital signage and kiosks and consumer electronics. The Company's shares are traded on the NASDAQ Exchange under the symbol: HEAR.
Cautionary Note on Forward-Looking Statements
|RecommendKeepReplyMark as Last Read|