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Corsair Expects Losses to Reach $11 Million for 2Q 2022

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rjohnson11
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2022/07/25 10:00:52 (permalink)
https://www.techpowerup.com/297144/corsair-expects-losses-to-reach-usd-11-million-for-2q-2022
 
Corsair, one of the world's leading PC component brands, is being hit hard by macroeconomics and consumers' choice - and sometimes need - to keep more dollars in their pockets. According to its own internal accounting, the company has announced that it expects between $10 and $11 million dollars in losses for 2Q2022 (April-June) throughout its business. Remember that this isn't a case of a company being too specific in its product line and taking the heat from it; Corsair has one of the most diverse lineups in PC components, ranging from memory, water and air cooling, SSDs, peripherals, and even monitors.

Not unlike other businesses, which have seen inventory levels soar on account of much lower than expected sales, Corsair too has seen its warehouses starting to fill up - not unlike the company's financials, there's less and less oxygen within its warehouses as inventory piles up. Corsair did say it expects business to pick up considerably in the third quarter, as it has seen an uptick in enthusiast-level PC gaming sales (likely spurred by the dropping prices of GPUs as miners dump their graphics cards in expectation of Ethereum's Merge event, set for September). The increase in sales leads the company to believe it will achieve a 35% YoY (year-over-year) growth throughout the second half of 2022, which will hopefully be enough to push the company back above the red line.
 
All of the major PC companies have seen slow sales. I expect this to pick up sometime in Q3 and Q4. 
 
 

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    aka_STEVE_b
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    Re: Corsair Expects Losses to Reach $11 Million for 2Q 2022 2022/07/25 10:52:14 (permalink)
    That just sounds extremely high of a loss out of Corsair.  Seems like they would have better people working there doing their inventory / production estimates, to not get that far out of whack.
     

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    Hoggle
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    Re: Corsair Expects Losses to Reach $11 Million for 2Q 2022 2022/07/25 10:53:11 (permalink)
    It's likely to pick up if anew graphics cards lineup comes out this fall. I think a lot of people are holding off on new builds expecting the news of new cards. It's probably also partly because people are waiting to jump onto DDR5 builds that will require more cost to build.

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    yaymz
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    Re: Corsair Expects Losses to Reach $11 Million for 2Q 2022 2022/07/25 11:18:08 (permalink)
    I expect to see more news like this from Hardware / peripheral suppliers.  Slowing the supply chain on hard goods isn't easy especially coming from a place where they couldn't make enough to a complete 180 of "nobody is buying".  And think about how much of this stuff is on a dock in China waiting to get on a boat and we have US distribution centers/warehouses already fully stocked.  Deep discounts ahead.
     
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    GTXJackBauer
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    Re: Corsair Expects Losses to Reach $11 Million for 2Q 2022 2022/07/25 12:57:39 (permalink)
    Hope they pull their ears out of their rears and start slashing their overpriced hardware back to reality based on a on and off buggy software called iCue.  

    Been their paying beta testing consumer for years now.

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    rjohnson11
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    Re: Corsair Expects Losses to Reach $11 Million for 2Q 2022 2022/07/25 23:24:11 (permalink)
    GTXJackBauer
    Hope they pull their ears out of their rears and start slashing their overpriced hardware back to reality based on a on and off buggy software called iCue.  

    Been their paying beta testing consumer for years now.


    Bugs in the iCUE software are solved relatively quickly. 

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    kougar
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    Re: Corsair Expects Losses to Reach $11 Million for 2Q 2022 2022/07/30 19:53:19 (permalink)
    That seems like a really high amount of losses from a slump in sales. But yeah, I think a considerable number of people have been holding out waiting for new builds by the end of this year. New AMD+Intel CPUs, new AMD+Intel+NVIDIA GPUs, better DDR5 pricing, should be a builder's dream. 


    Have water, will cool. 
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    wmmills
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    Re: Corsair Expects Losses to Reach $11 Million for 2Q 2022 2022/07/31 00:26:53 (permalink)
    aka_STEVE_b
    That just sounds extremely high of a loss out of Corsair.  Seems like they would have better people working there doing their inventory / production estimates, to not get that far out of whack.
     


    +1.... I had to let that sink in for a sec cause they are one of the biggest component companies with a good product stack for many years now and they are pretty good warranty wise. Although, with the hard times comin im pretty sure the last thing people will be buying are pc parts, so they may be trying to get ahead of it and stash some cash.

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