Corsair Gaming Inc., one of the big players in the high-performance PC peripherals and components sector for gamers and content creators, has published its financial results for the third quarter of the year, and in general terms these they are positive.
Andy Paul, CEO of Corsair, commented that they have achieved a 10% sequential revenue growth compared to the second quarter of 2022, and that they have also managed to reduce inventory in the channel, two very important achievements, especially if we take into account that we are in a “challenging” situation due to the circumstances that the economy is going through at an international level.
However, there is no doubt that GPU industry standardization, something in which the transition of Ethereum to its “proof of stake” version has been key, and the launch of new products by Intel, NVIDIA and AMD have also played a fundamental role in driving the purchase of new peripherals and high-performance components for gaming and content creation. This, in the end, must have greatly influenced Corsair’s results.
It is not a difficult subject to understand, since Corsair sells DDR5 memories of high speed that are ideal to accompany the new Core Gen13 and Ryzen 7000, and also sells high-performance PCIe SSD driveshigh power power supplies and cooling solutions with high dissipation capacity.
Little by little the market has begun a slow recovery that is being noticed in certain countries, and it is only a matter of time until the values begin to move at levels similar to those we had in 2021. At the time of writing this article, the US market is the one that has registered the greatest recovery in this sense.
Michael G. Potter, CFO of Corsair, commented:
“We remain in a challenging environment in the fourth quarter of 2022, with the strengthening of the US dollar against other currencies and the continued weakness in Europe as headwinds for us. Worldwide channel inventory levels improved during Q3, eliminating much of the excess orders placed due to longer lead times in prior periods caused by the effects of the COVID pandemic. Also we reduced our own inventory by approximately 15% quarter over quarter, as we bring our inventory to more normalized levels. We are starting to benefit from the cost-cutting actions we announced last quarter, coupled with the success of the newer products we recently launched, which we believe will have a significant positive effect on margins going forward, some of which we in the third quarter of 2022. We are also encouraged by the improving supply chain environment, including a significant reduction in freight rates and supply chain lead times, which are rapidly approaching the limit. same levels as before the pandemic.
Corsair expects to close the year with net income of between 1,325 million dollars and 1,375 million dollarsadjusted operating income of between $20 million and $30 million, and EBITDA of between $35 million and $45 million.