White Plains-based gaming accessory maker Turtle Beach Corp. (NASDAQ: HEAR) has extended its share repurchase program for an additional two years, through April 9, 2025.
According to the company, the program enables the acquisition of up to $25 million of shares of its common stock, including those shares already acquired under the program. Turtle Beach intends to fund the share repurchases using cash from operations or short-term borrowings and may suspend or discontinue repurchases at any time.
“Our continued leadership position in the gaming peripherals market gives us confidence in a stronger 2023 with a return to growth and profitability,” said Juergen Stark, CEO and chairman. “The conversion of our inventory to cash has not only strengthened our balance sheet but positioned us to make strategic and tactical moves focused on driving future growth and product expansion. We look forward to delivering value to our shareholders through the continued effective use of our capital.”
The extension of the share repurchase program follows this week”™s announcement that Turtle Beach recorded net revenue of $240.2 million during 2022, down from its record of $366.4 million from one year ago. The company ended last year with a net loss was $59.5 million, or $3.62 per diluted share, compared to net income of $17.7 million, or $0.97 per diluted share, in the prior year.
“Although our profitability was impacted by macroeconomic conditions causing lower consumer demand, heavy competitive discounting as well as extraordinarily high freight costs, we believe the gaming market is recovering, freight costs have dropped significantly, and we anticipate that discounting will return to normal over time,” said Stark. “We believe our brand leadership and diverse product portfolio positions us for continued success including revenue growth and a return to positive EBITDA in 2023 as the gaming and macro environments continue to improve.”
