Very good point wrt micro consoles. Will definitely see an uptick in controller sales as a result. Not sure about headsets.
And XONE and PS4 comprise 64.1% of that 6.38M. Still, with a solid 5 months on the market, it's not unreasonable to expect those folks to have begun buying new headsets and controllers.
2014 - 6.38M XONE/X360/PS4/PS3/WiiU
2013 - 4.91M X360/PS3/WiiU
Increase of 1.37M or 27.8% YTD on a year over year basis.
No way that doesn't translate to stronger headset and other peripheral sales. The new, leaner MCZ should be solidly profitable on that kind of revenue increase.
(raw data comes from VGChartz)
Doesn't seem to be selling that great at GamStop lately. Maybe they should hold off. Or maybe you prefer they sell the excess stock for $39 in 2014.
Titanfall FREQ 4D out of 3576 All Accessories
decided to wait and see how things play out. 270k shares to 1k shares?
I don't understand what you mean by "new competitor". Skull Candy has been in the market for several years. Astro is their gaming headset brand.
My post didn't get a bump. Marissa's stupid animated YAHOO! gif is working like a charm though. What's next, a butterfly pointer?
I have zero doubts that the market for 3D printing will be enormous. The mechanical engineering prototype segment alone represents a huge market, and those folks are willing to pay up for the capability. Having access to early prototypes can result in huge cost savings and a superior end product when compared to the traditional prototyping methods, so having the ability to prototype early and often during the design phase more than pays for itself. I however, hate to chase stocks. Any small cap or micro caps that you guys are following that might be a player or see some pin action in this field?
At $178M in 2013 revenue, TB isn't quite the behemoth it appears to be. Less than twice MCZ's annual revenue. TB is selling at 2.4X sales. MCZ, 0.4X sales. TB's gross margin was 28.1%, which is comparable to MCZ's. Give MCZ TB's valuation and its share price is at $3.42.
An additional interesting point: TB claims to have 50% of US headset market "which is now estimated to be approximately $330 million at retail", and 53% of UK market (no total value given).
"By comparison...the next largest competitor on both markets has roughly one-fifth of our share." Tritton did $40M in wholesale sales (maybe $60M retail?) in calendar 2013, so I'm not quite sure how that jibes with TB's numbers.
TB is forecasting 2014 rev's to range from $210M to $235M. YOY that equates to 18% to 32% topline growth. Again, assuming the entire market grows at that rate, and MCZ maintains market share, Tritton's 2014 calendar year revenue would be $47.2M to $52.8M. I expect the bulk of MCZ's revenue growth this year to come from segments other than Tritton however.
PS: It also looks like TB got stuck with a ton of inventory that didn't sell over the holiday quarter. MCZ's inventory management, on the other hand, was much better.
Here's an interesting take-away from their earnings report for year ending 12/31/2013: (reported on 3/27/2014)
"Sales for the first quarter of 2014 are trending positively and expected to increase approximately 10% over the same period in 2013, which was a strong quarter, and more than 50% over the same period in 2012."
Their first quarter is MCZ's 4th quarter. Since TB is virtually 100% headsetws, and assuming Tritton lost no market share over the course of the quarter, then it should be safe to assume that Tritton had a fair shot at 10% growth over the year ago period as well. That would equate to $11.9M for 4q14 from Tritton vs $10.8M for 4q13. That combined with everything else that went on prior to 3/31/2014 should make for a beat!
I guess I should mention that the above is excerpted from Turtle Beach's first earnings call as a public company. Following are there 2013 results:
"Turning now to the full year 2013 results for Turtle Beach, on a GAAP basis, revenue totaled $178.5 million compared with $207.1 million in 2012, representing a 13.8% year-over-year decline. As Juergen mentioned, the transitions of both the Xbox and PlayStation consoles contributed to a down year, not only for us, but for the overall gaming industry.
In addition, we believe Microsoft the way the implementation of headset audio for the Xbox One until March of 2014, also meaningfully reduced our Q4 revenues.
Gross profit totaled $50.3 million in 2013 compared with $74.3 million a year ago. Gross margin as a percentage of revenue was 28.6% compared to 35.9% in 2012. The decrease in gross margin as a percentage of revenue was primarily due to a shift in customer mix, including a higher percentage of distributor business as we expanded outside North America through our Lygo acquisition, higher refurbished product revenue, which carries a lower margin and less fixed cost leverage from the lower overall revenues in the year.
Operating expenses totaled $48.6 million compared with $31.4 million in 2012. The increase in operating expenses was primarily due to an increase in depreciation, amortization and stock compensation expense, which are non-cash expenses, non-recurring business transaction expenses relating to the Parametric Turtle Beach merger, operating expenses related to the Lygo acquisition and marketing cost."
"As expected...our upward revenue trajectory dipped in 2013 following the announcements in Q1 and Q2, that Sony and Microsoft would launch new consoles in November ahead of the holiday season. History has shown that these console transitions produce a market drop leading up to the transition, followed by several years of robust growth.
The negative impact of the console transition was felt industry-wide last year. There are several factors that create these headwinds. First, consumers bought less consoles, games and accessories, particularly for the old generation, that's X-Box 360 and Playstation 3, so and just choosing to save their money in order to invest in new consoles and the next generation software and accessories that will eventually be developed for X-Box One and Playstation 4.
Second, retailers became much more conservative and uncertain with their purchasing, given the unpredictability of consumer demand, very logical. Third, because of the technical specs for new consoles were not available until mid or late last year, the portfolio of products that can be created was by definition limited.
We can't design and develop new products without knowing exactly what they are connecting to and given that our products are not simple stereo headphones, we connect in the optical ports, USB ports, etcetera, it’s very important that we understand what we’re connecting to and exactly how those specs would work in the new platforms."
One danger of small batch production is that you fail to keep up with demand, and customers who initially desired, and would have purchased, a particular SKU, move on to another company's version rather than wait. Life is full of trade offs I guess. Which is the bigger sin?
They're starting to roll now. CTRLr today. Arcade TE2 fightstick earlier this week. Titanfall keyboard and mouse combo on sale for $149 vs the $209 list. I'm guessing that declares the Titanfall PC peripherals peak selling over with, and now it's time to blow out what inventory remains. Many other SKU's, both new, and well selling, require the freed up capital to be produced. Small batch production and inventory management at work. IMO.
Well...I didn't exactly mean it was a literal copy of MCZ's device, just that IP security in suspect in some parts of the world. Still, Amazon released its FireTV on April 1st, and this has been available almost since day one "PlayPad Pro for Amazon Fire TV" by Nyko for $19. Did Amazon release specs early to 3rd party controller manufacturers? Possible I guess. Doesn't make a lot of sense to me.
PS: I know there are at least 5 distinct posters here. I can't vouch for any number above that lol.