Turtle Beach (HEAR) 5 Nov 212021 Q3 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to the Turtle Beach Third Quarter 2021 Conference Call. Delivering today's prepared remarks are Chairman and Chief Executive Officer, Juergen Stark; and Chief Financial Officer, John Hanson.

Following their prepared remarks, the management team will open the call up for any questions.

Before we go further, I would like to turn the call over to Alex Thompson of Gateway Investor Relations, Turtle Beach's IR adviser, as he reads the company's safe harbor statement that provides important cautions regarding forward-looking statements. Alex, please go ahead.

you. Thank from we that to quarter also details which be call, filed press XXXX find be page discussed can afternoon Relations on presentation this the downloaded the the will latest today's where that the referring release results, at earnings On corp.turtlebeach.com, Investor supplements you'll information the company's call. third today's

expectations some of will of the this and include of laws. Corporation's results recording the anticipate on expectations. available company's and a could involve be and could, during risks be Beach words aware expressions future will, comments cause federal the the regarding Turtle These may, believe, Please and company's the call that website the management's made call results statements company's forward-looking Investors the Finally, beliefs uncertainties expect, later from current that operations such constitute statements securities today. containing section meaning to as about similar forward-looking materially the differ may Statements within of statements.

company believes that may upon factors numerous and the actual materially. are expectations results differ assumptions, cause affect reasonable may based results its to While

prepared company company that after non-GAAP accepted accordance we'll or -- with and United accounting today's The this its in generally not financial on this discussing materially periodic statements information Exchange the revise statements company call, review or in the or events release the forward-looking supplement to information contained publicly that also other identify information. without statements. differ limitation to the also that does States update company factors forward-looking The press to including risks filings to may on from Commission. those in a GAAP. in XX-K safe reports, risk providing our notes report So in and conference with Form you the factors described principles as cause and harbor actual is encourages call. and The Securities be annual specific any results undertake its which

these and provided the And of Executive Juergen? release to reconciliation a the results and metrics find company's reconciliation and reported tables can the turn I'll Chief Stark, Chairman GAAP over company's Officer. to call now You Juergen in today's presentation. earnings the

and our to Alex. us. are for to grow base. remain Good revealed year report year partnerships our unveiled despite on record logistics creating challenging history, with launched Thanks, products, and XXXX and second environment. afternoon, third be proud XXXX on extremely an constraints, discuss new revenue top which we you results that products, pleased significantly in operational today revenues continue I'm to delivered highest especially in our we of joining will everyone, anticipated to which thank quarter I'm you QX in that excellent the supply consumer highly track to new deliver global full growth our

execution. revenues million and and largely operational was QX growth the year-over-year results $XX.X where record-breaking posted only outpaced our and XXX% were outdone $X.X our by by Our XXXX's million, market driven QX peers, we adjusted strong EBITDA

category the outside quality global number QX demand end drives are which gaming different market X.X grow billion. largest grow, $X.X difficult continues of gaming XXXX, the for with $XXX faced billion. billion a gaming and for a the gaming in is gamers our industry, of to leading world gamers The to The now categories against we've business, of first And are we console years. the as most completely the for this expected higher to continues worth over XX reach expansive over and the products. entertainment markets XX% by that over market While gaming comp time, quarter, addressable led with in X revenues of we categories operating headset year-ago approaching

the but closely We down the quarter, markets continue spike. console exceptionally strong for noting normalizing QX. broader follow and after headset retail first from an up market NPD demand PC trends. are tracking, underlying these per to stay-at-home-driven that U.S. Still Also year-to-date

console despite continues market U.S. our next drove the supply in higher to in decrease surge be where share small to competitors X a chain year noticeable than a headsets Our last outperformance compared combined, share.

permanently This we're considerably. and Turtle have in opportunities great far, brand communicated whether market have years, a category, disappear stay-at-home as otherwise, the of not console the increased orders entered past, has headset ahead. or We craze, Beach remains the gamers we've bestselling normalize millions spike, gaming we as our for have markets. over Importantly, those but to the rather believe expect favorite fan of the the is accessory excited new gaming by decade. the about pandemic in, a marketplace and the recent our Fortnite been we as in gamers through size they be the In expanded and to markets from do market

launched gaming with the multi-platform PlayStation, features and feature multi-platform provided mobile this headset our looks Controller Xbox, is XXX Gen Recon which flight our headset, but newly sound we business is the move comparable continuing best-selling are forward markets: that and highly upcoming plans gaming Recon X controller the VelocityOne system. the delivers and only And at flight It enter controllers and partnerships, appealing the and Gen rechargeable and at first for controller simulation not Velocity simulation hardware and control with Recon X control In capability for audio with flight leveraging also simulation game and PC through strength to brand's just Nintendo the system. and enter works like categories hardware point this Switch we're we headsets September, set unique X devices. Xbox, to quarter, redesigned new powerful gamers. Now with premium new flight Last large simulation revealed X a our XXX we price we as Recon $XX. many to

works patented seen audio launching controls, gained to with in August. rave placements Beach's new reviewers and Turtle launch in met with category game-winning demand for controller, and multiple also with retail since has the strong which been this innovations is with also Recon first PCs, and We've Our controller since Xbox major among have combine fans and is retailers. reviews designed Windows

and the system fans throughout available hour. world this had product. German a enthusiasts XX drove we anticipated for simulation and VelocityOne in us winner a notified Show That's U.S., through quarter. Best very our of in rest XX,XXX team yesterday marketing up about be when highly to signed announced at flight interest strong was of control flight efforts for significant our end award Our EX category. the and And last sim and supply PR that the obviously October, QX. that of over growing preorder, $XXX an At million flight out U.K. in was minutes, VelocityOne preordering we rapidly start sold And

additional November weeks support our to the XXXX have arriving in launch. ahead product We XX, inventory

On Disrespect, the our Beach we Stealth partnership in pad Sense limited PC TKL to ROCCAT included Keyboard, ROCCAT Pro premier and than mouse big out the Mouse, award-winning and also the XX gaming's Immortal headset, both with The X superstar and launch gear headset Vulcan and edition Pro XXX Dr Turtle sold Disrespect Gen less Turtle collaboration out, pad. streamer. and topic Kone products of mouse brands minutes. This edition our Dr both selling in launched limited best-selling Beach was across enough

proud at accessories ROCCAT Turtle UC by of We with teams gaming e-sports industry best our and their by our Beach also supporting Diego's and fostering providing program. gaming products. announced sponsors supporting and we're culture, to local the all an gaming inclusive that became to that leaders doing university's committed official We're them San premier to at allow compete and gamers scholarship levels community with

athlete study compete allocating program in at a helps to esports esports. student Additionally, funds collegiate gamers and world-class UCSD's the we're scholarship support institution

In and the materials Next, we've brand, as new gamer. expand out new fill USB to ROCCAT's pads QX, range variety Sense launching variety exciting Torch sizes, well products points every $XXX with cater new portfolio to a microphone of price PC we that mouse as our launched and shapes, and a of that adding continued partnerships. ROCCAT

with we headset. are in now family is of fans also streamer, Beach part partnerships ongoing uses Turtle ROCCAT mouse and broadened RGB keyboard. ROCCAT also popular the our up sleek Magma of teamed ROCCAT his with who creator, ROCCAT ROCCAT's KP, partnership full content U.K. KP using QX, the Vikram excited and wireless now popular Elite gaming and boost For Kain experiencing X performance XXX performance. we're and to was design Vikkstar, / already advantages Legends League Pro

XX time new precision give gamers new our PC Additionally, ROCCAT and limited as new brand. so advantage, far, collection eyewear Oakley to fans competitive combination another sound. and ROCCAT a through to yet gaming in launched vision continue XXXX accessories ROCCAT ROCCAT announced we've ROCCAT PC gaming XX a edition PC PC In and -- we and and broaden of launched the portfolio this total Rockley partnerships

As we Neat's microphones into brand, desktop continue through availability the new expand $X.X billion microphone. of to our all USB market announced we Neat Skyline global

by many designed announced With USB for price. provide high-performance microphones, Skyline to world's performance all-new our II II available microphone offered plug-and-play the King And Bee for recording decade-long creating King studio-quality Bee, microphone. XLR The to their Neat's a U.S. a successor it preorder, quality remarkable a Bee November for expertise audio of with now original best team's highly set the XX. previously coveted anticipated was launch the good King Neat at is is the exceptionally $XXX in enthusiasts is sleek which

expectations I of resources, Japan we I've paying developed and and allocated our in our revenue dividends, some creating variety stationed new we distribution reshape will have made and investments pinnacle at now also also over build said categories, are believe of targeted for products Those expansion, points. growth marketing Across in retail have in South investments in microphones before, and particularly geographic market investments Korea XXX%. year-to-date that sales high-performance mics to all the our relationships, products of in-country As a team Asia there. brands and product with where price early we have new

encouraged we've potential, but excellent Asia for this progress still relatively by small is there us and year. made tremendous the holds future I'm

was very quarter financial third exciting top launch our of a delivering excellent on from product standpoint So results.

last record non-console our our full revenues we and potential over for on mentioned turn in some financials progress. remain delivering thoughts We product categories, goal cover outlook of year to and seeing schedule. the exciting QX, next quarter, to And a have gaming which track following as in provide I'll to growth after across to continued our the detail, to we're headset John ahead launches continued year, John? I'll reach our it what new market well revenue million on year-over-year advance I $XXX our by unveiling and XXXX. strategy

good Hey thanks, Juergen. And afternoon, everyone.

the in only third a As are the pleased XXXX. was of yet another quarter outperformance QX driven execution-driven of Juergen XXXX report the for by million to quarter, QX surge company, recording noted, $XX.X revenue and orders demand of our year Net the highest history ago, stay-at-home compared in excellent by we $XXX.X second our to the from market. of was million which outperformed

other XX, global revenues than the compared quarter XX% to ago. third net and September which bottlenecks changed logistics were results. freight $XXX.X to decrease the to This logistics the a earlier chain-related million For higher retailers year and in XXXX, cost due XX.X% due and third was resulted supply the in $XXX.X ago. mix higher-than-expected XXXX are year compared years primarily present, many XX% months challenges, up seeing challenges a million Gross inventory reported X in cost was we business increases. prior to due ended at quarter in loading supply to margin holiday At

third XXXX a other margin microphones; larger to And expenses and of entry product support product year XX.X% shipping explained. For flight gross component large into compared R&D size to Operating geographic compared marketing same controllers, were our million new logistics costs, challenges our current new $XX.X the same with increased business. continue and the product ago. headwinds availability. portfolio. of many increased also expect expanded in in companies, several XXXX, X future was expenses million as the Juergen simulation and and the supporting period in of with expansions, and targeted expenses ongoing XX.X% quarter categories: Like to launches the higher connection $XX.X period, X-month and in Selling delays to we the from quarter and

I margins the just leverage. third compared For a ago, same fixed Adjusted outlined, XXXX the primarily the investments million year incremental to was $XX.X reflecting $XX.X to were was X-month factors. a $XX year-ago million and operating in of in period, quarter. compared of and revenue million the discussed previously, This million function costs EBITDA decrease expenses lower quarter $X.X lower

in to GAAP to was million quarter. the of compared million was For income quarter above This net shares outstanding, X-month shares adjusted XXXX was average GAAP year income compared per outstanding the was XXXX weighted the quarter. XX.X the compared period, $X.XX million XX.X a on income decline $X.XX factors. net in a third diluted in year-ago to per share million third share diluted of in $X.X of weighted million year-ago $XX.X net ago. average on $XX.X the quarter EBITDA stated $XX the to due million

year share. per For the tax by GAAP compared full or now ago. $X.XX timing million for certain to of rate totaling discrete or to the $XX.X XX%. The per quarter our million per rate of effective net share approximately tax be diluted share, diluted X-month was $X.XX million XXXX tax a the period, effective expect income items $X.X was $XX.X approximately or diluted $X.XX We year driven third

Now turning the sheet. balance to

we $XX.X of million no as debt of September equivalents million were under to September $XXX.X September of outstanding compared XXXX and on As XXXX. million of XX, facility. XXXX, had Inventories XX cash XX, revolving cash $XX.X credit with our

levels of rate the challenges. have chain business, our the run We supply higher inventory anticipated expanded portfolio, consistent maintained with and and logistical

Lastly, $X.X turn of purchase $XX.XX. average for for to comments. repurchased quarter, million additional Juergen? an during XXX,XXX I'll some we at now price the And over shares back call Juergen the approximately

global operational shipping. our very semiconductor circumstances execution our $XXX QX limiting Thanks, our in semiconductor Despite million were and constraints pleased continued our already with efforts, We're availability performance, John. outlook revenues. of challenging through with strong including

further headsets. And have worsened, constraints some in of specifically revenues, those impacting our wireless

wireless units than Wireless leadership anybody Given headsets our shortages. have been semiconductor particularly more of far hit else. we in console by headsets, ship hard gaming products

the of most of XX our making changes And in done the months. wireless rounds anticipated past efforts this meet demand us semiconductors used Our team over have an enabled has those multiple excellent job year. to products to

high and roughly However, gotten also arrive, to year. a have shortages even accordingly. that shipments impact. to longer the are headsets volume delays worse, in ship, wireless affecting semiconductor Between revenues resulting these products taking given X existing replenishments in of anticipate has material gap a we new and constraints delays, million this the modest both X product weeks $XX and $XX shipping revenue to million Shipping we

some factored in our constraints, While worsened. prior year outlook conditions have

dynamic and impact season. sudden run changes at last will rates. directly And to $XXX revenue at revising above growth are an million to the costs $XXX a we our original million. to full market given have quarter, the So outlook midpoint. range through providing from flow this to prone $XXX outlook throughout revenue are of margins, normal Shipping our we continue as anticipated million, of that year logistics on which EBITDA. a holiday gross to And we This year-over-year are the -- conditions remains noted XXXX range, our multiples

if we offset the this market, are and some across last of also significant course, there quarter. overall impact, could spending be promotional shortages as lower Of product noted stock

currently could However, on holiday our during lower promotional our it revised spending not across are seeing markets. not change this outlook. we counting the And season, we are while in

million. a result reduced outlook million to As million, range EBITDA a higher from outlook of $XX the we significantly are $XX of reducing costs, freight to $XX our and revenue

we our chain expect while continue upcoming constrained hardware market So are expectations that will supply overall gaming by to of challenges. market holiday and season the overall be positive, the

discussed. the headsets, us, largest wireless as constraint console our is I For on

our continue of a track to pleased benefits and product offset console I'm expansion categories, and with part expectations the that flight of helping our on indicator game are actually businesses of simulation PC accessories constraint new As microphone business. controllers, our very successful good the the headset in our

placements first outpace in fact, in start, just launching under more lineup mentioned we or the products Neat out coming. rates retail microphone controllers ROCCAT controller PC to markets. growth category, a in with shipment And our launched. And off In are I great the flight sold an Several VelocityOne our simulation in have major market are our that continued hour. the to

We right to the see we consumer expect XX% year. strong this electronics gaming to reflects business categories XXXX. detract of these Operational some over in PC progress certainly revenues categories to in is obviously are years for tremendous since ready gaming of obviously of This our extent past roughly into additional ahead. difficulty the diversifying like view categories now. every degree new from is track high attractive the growth our not hardware, and opportunities in does That

to constrained we headwinds several supply. chain supply abate better programs engineer semiconductors as during complete XXXX, highly with to to away the expect additional We from semiconductors, particularly

expect costs possible We challenges, I'm put confident start long-term the of remain on come are And quickly but and freight given coming best both these us acting decisively position, and to high months. challenges. top industry-wide we with in the to to the in that down highly short-term moves

have to the grow products times, we've will best, mention a not of this headset year that full XXXX, In be in as from well leader next best, excited that And in. by stronger other sales year could excited XXXX portfolio year. even the of I'm categories to a to as headset we the about many ROCCAT market products that there. changes the one console an of shortages our fact, portfolio fact coming coming in including PC the as gaming in console year. products next the and driven launched And see be I've the Not about has some semiconductor new I'm additional in said result if

quarter retailers we're their for grateful questions. strong for There's lot ability is the another Beach great entire look execution. that team's forward Finally, to I of want deliver our again take consumers. navigate updating skillfully new our focus and ready present result for and very to continued I to the to thank I'm more Turtle team and to our and all challenges Operator, a in great industry-wide come, now products year. you a

our from of And will come Crum the Drew Instructions]. first line [Operator Stifel. of question

have your willing then share discuss updated XQ, to XXXX? willing if performance Wondering headsets comment expectations you're follow-up. your to console in I you're for And on during if and a

Drew. Sure,

Our historical share tracking performance. our headset is console to

last above XX year. abnormally to for been the end an XX% share high at where last expect did we We headset years. We have have

QX because the of You might dropped, better and Their we out-executed based many a share, we the on cases that competition. supply share above recall and in couple XX% actually we months, execution. were supply caught chain share

top we sell And So... have of constraints that, than far a that on headsets do unfortunately some where share, a expect, here. have We're we modest our wireless headsets on will in QX we else. anybody position in on more just wireless impact

amounts but So business can them cover small a we components additional portion often lot terms wireless, keeping need to actually are a supply of of a in competitor's on in stay of what tiny of in supply.

already, I keep actually effort. the and multiple a semiconductor mentioned, also So year phenomenal It's disruptive. done constraints share highly a semiconductor as our the in impact to have this we've into gone changes component away. we is position revised financially major meaningful will guidance, in. a have us But we that which job team until modest has even components is The go small gap factored that we're engineering as through of the on

XX% not, you or growth the balance longer-term but logistical expectation in you the achievable disruptions do that not some that XX%? year coming then it. headwinds? guidance you quarters. talked see Understanding you'd as the for that that macro of And given something or supply year months how that revenue against chain see to your today, you're target Is Got company's on about giving next and relief next

all, about share why any at It's way. right? hard categories, with others point, industry-wide constraints the semiconductor the we guidance us lot, next look we're don't things a happen. is if not following I XXXX. to on of the in be thinking how question, A year, market supply the the We give for in your judge lot for for of year terms in can of And don't will holiday. to expect by of so until which know this past Including

semiconductors is So continue boards better do mitigating we And and our we months to. to anticipation as efforts new are for The supply these lot gaining that with projects semiconductor having volumes more supply. semiconductors last are the -- and by you more us year do literally the do visibility the categories, lower way particularly the that be design And extremely of some our bad, we has we'll the white for wireless don't have will about We're to with point headsets, the started XX out to we're in now, entrant. have been supply where there on share. that good that next you a visibility that us. of the space supply redesigning have design impact. out. industry growing. And -- headsets, redesigning engineering there and way circuit more less than is to already is to our out better the for We're than of have There's in And benefit anticipate have others.

and product So constrained, lines next not constrained general year. those they'll don't expect that I be in are

from Argento the Next line of Mark Lake Street. comes question of

nice quarter. John, Juergen,

statement in the to of a diversification the understand made about you -- to that wanted your remarks prepared I wanted Just statement. just portfolio.

say that a the Juergen? revenue -- this little? did XX% of products the the just are onion point, coming or Could from you peel of you at reiterate non-console So kind

two almost XX%. the console the to XX expect to. this here, We've result as far roughly is the QX portfolio. The of products actually but would quite And in Yes, business. year, of of happy we the our headset XX% to year of There's XX points include revenue, XX on controllers, we're and ROCCAT new the diversification launched flight outside actually core mics interesting be And efforts simulation. business. not so a tracking PC XX%

some off have to and Japan Korea. allocated specifically relative we've nicely to and diversification that are is the on made investment really I note paying other investments Asia, The we made

results about to start the the much happening. more past business. frankly the what's We to be and in because start that I haven't come meaningful wanted specifically, to to that's talked in And

well double So of a further more and the good which growth, the now tracking way. than to helping those are year-over-year business are additional in businesses is diversification geographic

-- I at I chain the chain you've the you additional there. and in or years. supply appreciate last some then looking issues, one know invested the color supply X of guys And over your terms thing X -- in

Given back the some you headsets? it volatility guys a have the components that doing seen, retailers in terms big year? Or of are earlier that made Is around the you to guys profile shipping to pickup? benefit then And these demand to onerous kind air be extra comes were try the guys normalization you a get that you in this demand like have -- for given quickly? is at able guys to how that are earlier, buying stuff you reengineer the that to go ports, in of when margin terms little of of Is that the point? of this cycle? and gross in going And stuff

Sure.

culprit products swap wireless headset. and XXXs. It's the pay to afford like in Those to wireless and It as semiconductors. our out category new reengineer So get of paying the way our is headsets, can a the are that in any same with -- very pay. than the I the guys willing trying a highly disruptive more semiconductors, -- primary on we are almost which large to franchise to are Particularly Bluetooth-enabled headsets automotive have Stealth semiconductors mentioned, some there.

I very were redesigns late -- point before the So have the that. next in way year This was multiple securing availability and XXXX. on we at through ball, supply putting advance. but far the well the orders well this back the Doing including already. Including things, of -- semiconductor to in all going been components, component Think constraints last known. about many about, also talked for

of U.S. problem think now need diversifying well multiyear and -- time complex are. there year And products into anything an to issue. is is the that still I past. have execute think like more whatever this are. good of all In those we front half that faced just record then So we And on about our dynamics, operational great that The challenges bottlenecks shipping, have particularly terms goal, perform from the done can't in That's we where a to we're Europe. so doing of supply, every come our I that the in through a already well. semiconductor you come is than the doing And it's industry-wide the into a other they as China. of supply U.S. job need manufacturing outside and to effort. do coming still the And the to that. is all of And

we we're longer, have have out for impact do And the your you been financials are can using more key to container selectively ship alternatives, vessels can't airfreight taking weeks X holiday to. some is into freight. X ports. that's the figuring to And a it. doing That here. other use on when air You Because The we yes, alternative. different where -- ship into at We've very active. team including phenomenal is

So there, best identifying issues, we the they're term at an give manufacturing to diversified efforts think continuing is doing if front, looking when shipping both less these China. look the do an other we outside of impact. us team best alternatives, opportunities I like to cost, longer supply We're of where have did possible we excellent job at on term longer-term that but at short the also

the what for one of And shares in John just the of back? quick bought authorization? you remaining terms that had number Great. And one was you what's mentioned that

were shares XXX,XXX repurchased. So

so million the so remaining. used authorization about actually is there's XX XX remaining, million. million X.X, total We've And a XX roughly of XX million,

Great. it. the way, the rest luck Appreciate of guys. Good

line Victoria Next D.A. of Davidson. from of question comes James the

one follow-up. So I've and got then a

launch. started selling should microphone, How compared the we for portfolio? gross margin think on like you so rest So the of firstly, looks it product the about the congratulations your that to

the we which ROCCAT ROCCAT about microphones. Neat well the with just integrated to asking microphone? the mic as is under launched both ecosystem the Victoria, Neat brand, the you Torch clarify, Are as

microphones. Yes, asking sorry, about the Neat I'm

Okay, sure. yes,

exceptions lines So band. answer across actually the environments, margin all product where target in gross deviation these range. market the new and same our and target apply bit But guess because on might any board. would all isn't they're categories from I have are The we generally a significant mid-XXs our costs there logistics There freight in that. normal some of that lower be

you've those my both of expansion would the you both product do microphones? the then beyond And with How microphones. follow-up Neat about and think launched now your lineup, that be Torch current

Sure.

one that the obviously their Neat they under way, So one microphone key ROCCAT the the by ROCCAT are into because ecosystem. under integrates brand, one difference is brand, PC microphones, the

first So mouse, gamers that software and terms keyboard, integrates They underneath advantage in under at professional to brand. microphones. number want control all Torch And is also next the microphones microphones streamers year conferencing. then the of coming they've tranche microphone ROCCAT we that as conferencing, over there musicians the of continuing of of additional will really it to got want and mic. expand that And a is are of be And to first in streaming, the the video that. part headset. Neat use many and time also expansion just Portfolio audio in a portfolio of targeted part Neat of the and be lighting

Next question Angie of of Song from line Oppenheimer. the comes

of is Martin Song This behalf Yang. Angie on

a Turtle is And and for sale. in fact speculation the SteelSeries valuations. robust pursuing some Beach comps HyperX at regarding we've been there's marketplace seen like the So transactions that

strategic update thoughts in you regarding on market can and the your potential us company? So interest private

strategic comment processes, Angie, underway. that's on. going makes comments company be we're not anything something No on to should

the posted going about in obviously not statement we in the other on, interest than that's So to I'm I'll the something company late comment August. Donerail's --

of question Group. Maxim comes Aarde Jack line the from Next of

solid the aren't shortage? these most products multiple related on questions and the it to of congrats impact and non-console Guys, industry less juggling on are industry tonight, given if I this start you the products. impacted Turtle heard kind maybe, challenges question, Great. sales. so this the Beach specifically impact just view as your on your non-console overall your Can results. conditions correctly, I'll having It like hope of I'm semiconductor product least comments of your about just in macro with Juergen, relates redundant. maybe on calls the I which my But talk too an sounds are

the product is a disrupted the of supply. at My make the on is or product supply positive impact the a Sure. general, having helping radios. including some on headsets. more a In have comment has, -- up about headset the that limited way risk the Wireless non-console lot to actually it's business semiconductors of the console actually very constraints wireless was more of headsets product semiconductors, semiconductor that way, in the issue the think

console next product semiconductors. So of they the at they're kind have of are not that the level kind the -- And least are some products Other top in would the the a that products volumes headset products are part headsets of big more of else powered because like stack impacted, passive that a do. that our the than category that of we of terms impacted, don't radios. given be then where impact or have we -- our That's that's are far, our wireless by power wireless portfolio. high. fact anybody headsets shipping But any products any are don't have and

supply a their can cases a amount semiconductors, scrounge extent some many category. that business. the of that to competitors our the given But are business, might others it in lot covers of our multiples volumes So it in small cover of only of

are our So that smaller and than we our console non-console do business. keyboards business, obviously microphones and that in headset all than the mice volumes and headset

of the a of bigger even have our up products are incremental semiconductors because that can make expected volume. amounts portion supply smaller impacted, So less

performers then one Great. new helpful, the This on products. simulator success another flight products. are preordered I And question these were other I'm the maybe looking in also initial the really successful just preorder for with the clarity. was of context Turtle from statement, And -- And what that that most and That's products appreciate Beach's or is most the history? behind top preorders?

question. good yes, -- we So

all minutes. actually XX And an snapped most who've part is stat on hour, because and to in first got preordered I of shipment preordering under that. in major a actually reasonable the in up be The there VelocityOne all globally we most supply. supply the exciting notified the is up XX,XXX markets in the for signed had people and think

the So of was where had out We've fastest. what -- one most even I preorder the quantity that's made the it sold preordered tell couldn't products you.

products Over those multiple Disrespect, quickly. sold edition, couple Dr it's preorders a -- are for not normal out. out sold we've quantity, And period. out, those limited that had Like those we've limited of years, But preorders. had that the have quite to sell had others the have

And ex-pilots that's testament enthusiastic the sim, about a I strong and just think the on that. reviewers how professional excited community we've of product, we given that of from gotten to looking the that is product. at really as the well indeed about who have sample feedback been board -- all the as it's flight it. across I'm to a the number have products

I'm queue. I Well, back appreciate to going the Great. hop the color. in

over Stark session. concludes this to for like question-and-answer Currently, would now the back Mr. to I our turn call remarks. closing

very forward hope And look investors Thank with XXXX. very and has staying you holiday I in great company, much. in everyone Thank talk a a season. and speaking when wish our I really analysts is your good you. safe. we to day. We the hope everybody again interest you appreciate we

today's This concludes call. conference

your your You at may a disconnect participation. for Have this day. Thank time. lines great you