Benzinga | Nov 2, 2021 11:47AM EDT

Corsair Gaming Q3 Earnings Miss Estimates, Margins Decline, Warns On Elevated Logistics Costs

* Corsair Gaming Inc (NASDAQ:CRSR) reported a third-quarter FY21 revenue decline of 14.4% year-on-year to $391.12 million, marginally missing the consensus of $391.2 million.

* Gamer and creator peripherals segment revenue decreased 13.8% Y/Y to $139.3 million. Gaming components and systems segment revenue declined 14.8% Y/Y to $251.9 million.

* The gross margin contracted 210 bps to 25.9%. Adjusted EPS of $0.16 missed the consensus of $0.25.

* Adjusted EBITDA decreased 56.6% Y/Y to $27.6 million, while the margin declined 680 bps to 7.1%.

* The company used $34.3 million in operating cash flow. It held $76.1 million in cash and equivalents.

* "During the third quarter we experienced an increase in logistics costs over the already elevated rate in the second quarter, and costs and shipping times are expected to remain elevated for the remainder of 2021," said CFO Michael G. Potter.

* Outlook: Corsair sees FY21 of $1.825 billion - $1.925 billion, versus the consensus of $1.88 billion. The company recently reduced its revenue outlook from previously expected $1.9 billion - $2.1 billion.

* The company sees Adjusted operating income of $180 million - $195 million (prior view $235 million - $255 million) and Adjusted EBITDA of $190 million - $205 million ($245 million - $265 million).

* Price Action: CRSR shares traded higher by 0.10% at $24.86 on the last check Tuesday.