Turtle Beach Corporation - HEAR STOCK NEWS

Turtle Beach Corporation has launched the new Stealth 700 Gen 2 MAX and Stealth 600 Gen 2 MAX wireless gaming headsets, enhancing their acclaimed headset lineup. The Stealth 700 Gen 2 MAX features over 40 hours of battery life, multiple platform compatibility, and premium sound quality, priced at $199.99. Meanwhile, the Stealth 600 Gen 2 MAX boasts over 48 hours of battery, priced at $129.99, while the Stealth 600 Gen 2 USB offers 24+ hours at $99.99. These models continue to solidify Turtle Beach's position in the gaming accessory market.

Turtle Beach Corporation (Nasdaq: HEAR) recently addressed stockholders about its strategic alternatives and value maximization efforts. The Board has engaged multiple banks and contacted 29 potential acquirers since 2020, receiving significant feedback indicating concerns about overreliance on console gaming headsets. Previously, the company rejected low bids during earlier outreach, believing they undervalued Turtle Beach. The Board continues to advocate for a BLUE proxy card vote, aiming to prevent a rushed sale that could diminish shareholder value.

Turtle Beach Corporation (Nasdaq: HEAR) reported Q1 2022 results with net revenue of $46.7 million, down from $93.1 million a year ago, and a net loss of $(6.5) million compared to a net income of $8.8 million last year. The adjusted EBITDA loss was $(5.7) million, markedly lower than the previous year's $15.3 million gain. The company maintains a revenue target of $100 million outside of console gaming headsets, citing challenges from consumer spending and supply chain issues. Despite these challenges, Turtle Beach is optimistic about growth in the second half of 2022, driven by new product launches.

The Donerail Group LP, a significant shareholder of Turtle Beach Corporation (NASDAQ: HEAR), owns approximately 8.5% of its shares and is advocating for a complete board change due to perceived poor governance and underperformance. They assert that the current board has failed in operational and strategic management, as evidenced by a 65% decline in share value, dwindling revenue growth, and halved EBITDA margins. The Donerail Group also alleges that the board has not adequately engaged with potential acquirers and urges shareholders to vote for their proposed slate of directors using the WHITE proxy card.

Turtle Beach Corporation (HEAR) addresses the ongoing proxy contest with Donerail Group. The Board highlights misleading statements from Donerail regarding their engagement and acquisition proposals, notably omitting 17 requests for financing information. Donerail's compensation claims and lack of credible financing have raised concerns about its intentions. Turtle Beach encourages shareholders to support the BLUE proxy card to protect their investments amidst these challenges.

Turtle Beach Corporation has announced the global launch of the Burst Pro Air, a new wireless PC gaming mouse from its ROCCAT brand. With a lightweight, symmetrical design and RGB lighting, it features advanced technologies such as Stellar Wireless for enhanced battery life and connectivity. The mouse supports Owl-Eye Optical sensor technology with up to 19K DPI and includes Titan Optical Switches for fast responsiveness. It offers 100 hours of battery life and quick charge capabilities. The retail price is $99.99.

Turtle Beach Corporation (NASDAQ: HEAR) has launched the Recon Air™ Wireless Chat Communicator headset, available for $39.99. Designed for gamers and professionals, it features noise-cancelling technology, a 10-hour battery life, and compatibility with various gaming consoles and mobile devices. The headset aims to enhance voice clarity during chats on platforms like Discord and Zoom, making it versatile for both gaming and daily communications.

Turtle Beach Corporation has faced significant challenges under CEO Juergen Stark, with shareholder return declining over 65% since he took over. The company has written down $100 million in investments and stagnated revenue growth at 0%. Despite this, management compensation has surged to an estimated $65 million, exceeding 25% of the company's enterprise value. The current board's decisions, including high bonuses for underperformance, have prompted the Donerail Group to advocate for a complete board replacement before the June 7 annual meeting.

Turtle Beach Corporation (Nasdaq: HEAR) filed definitive proxy materials ahead of its Annual Meeting scheduled for June 7, 2022, urging stockholders to support its six director nominees. Highlighting strong performance, the company reported record total revenues and a 350% stock return over five years. The Board criticized the Donerail Group’s attempts to gain control without offering strategic value. Turtle Beach remains open to evaluating all strategic alternatives while prioritizing stockholder value, asserting its management team is equipped to lead future growth in the gaming sector.