The global economic downturn is hurting many PC companies, and it appears that Corsair isn’t an exception.
Corsair, a “leading global provider and innovator of high-performance gear for gamers and content creators,” said in a press release that it expects to lose “between $10 million to $11 million, for the quarter ended June 30, 2022.”
Andy Paul, Corsair’s CEO, has described business as being “challenging” for Corsair as of late because of economic struggles.
“The first half of the year has been a challenging time, as we expected, with macro-economic headwinds affecting consumer spending on gaming gear, especially in Europe,” said Paul. “This has caused a buildup of inventory both in our warehouses as well as in the retail channel, thus causing our channel partners to delay ordering while they clear this excess.”
Corsair’s press release goes on to assure investors that it’s taking a number of actions to improve its business, including details on what was apparently a pretty successful Amazon Prime Day.
We have already taken actions to mitigate this and made substantial progress during the quarter to reduce inventory levels. We have also proactively taken actions to reduce operating expenses and taken some reserves against potential inventory overhangs. We are pleased to see recent upticks in activity from enthusiasts looking to build gaming PCs, which use our component products, and GPU cards are now generally readily available at attractive prices. In addition, our Amazon Prime Day results showed a promising start to Q3 and the second half of 2022. Industry estimates for total Amazon Prime Day sales were up over 10% year-over-year, and Amazon sales for Corsair products during Prime week demonstrated very strong growth compared to last year, and in particular, components used to build gaming PCs showed sales growth of over 35%. We observed growth both in the U.S. and European markets.
Corsair will release its Q2 2022 results and financial outlook after the Nasdaq close on Thursday, August 4, 2022.
The company recently announced new gaming monitors in the form of the XENEON 32UHD144 and XENEON 32QHD240. The former features a 4K panel with refresh rates of up to 144 Hz, while the latter features a QHD panel with refresh rates of up to 240 Hz. Both are IPS panels.