Monday, August 24th 2020
Corsair Files For $100 Million Initial Public Offering
Corsair Gaming was founded as Corsair Microsystems in 1994 originally selling cache modules before switching to DRAM after the incorporation of L2 cache in processors, since then Corsair has continued to expand its product lineup now offering a wide range of PC components and peripherals. In 2017 private equity firm EagleTree Capital acquired a majority stake of the company in a deal valued at $525 million. In recent years Corsair has been acquiring various gaming brands such as Elgato, ORIGIN PC, and SCUF Gaming, these acquisitions have likely left the company with significant loans to repay.
Corsair Gaming has recently filed an initial public offering with a target price of $100 million and will be treated as an emerging growth company. The company intends to list on the Nasdaq under the CRSR symbol. The IPO filing offers some insight into the financial position of Corsair however, many exact dollar values have been withheld in the public filing. Corsair Gaming has sold over 190 million products since 1998 with 85 million of those being sold in the last five years.
Corsair Gaming recorded revenue of $1.3 billion for 2020 with a gross margin of 24.2% and $31.3 million net income up from a loss of $26.7 million in 2019. The IPO lists some possible threats to the company including the reliance on Amazon who accounts for 26.8% of sales in 2020 and the dependence on just 10 customers who account for 52.4% of sales. Corsair also notes a target market of 524 million PC gamers of which 94 million spent over 1000 USD on their gaming PC systems.
Corsair also provided an interesting insight into who they consider to be their various competitors in various markets:
Source:
SEC
Corsair Gaming has recently filed an initial public offering with a target price of $100 million and will be treated as an emerging growth company. The company intends to list on the Nasdaq under the CRSR symbol. The IPO filing offers some insight into the financial position of Corsair however, many exact dollar values have been withheld in the public filing. Corsair Gaming has sold over 190 million products since 1998 with 85 million of those being sold in the last five years.
Corsair also provided an interesting insight into who they consider to be their various competitors in various markets:
- Gaming keyboards & mice - Logitech, Razer
- Gaming headsets & audio products - Logitech, Razer, Kingston (HyperX)
- Gaming & creator streaming gear - Logitech, AVerMedia
- Gaming controllers - Microsoft, Logitech
- Power supplies, cooling solutions & computer cases - Cooler Master, NZXT, EVGA, Seasonic, Thermaltake
- Memory modules - G.Skill, Kingston (HyperX), Micron (Crucial)
- Prebuilt gaming computers & laptops - Dell (Alienware), HP (Omen), ASUS, Razer
- Custom gaming computers - iBuypower, Cyberpower
23 Comments on Corsair Files For $100 Million Initial Public Offering
Also, their investor wants their investment back, so not much choice.
:cool:
I think, on that front, Corsair makes and benefits from a more robust consumer satisfaction mark. Other MMO mouse options are not left out without due cause.
I hate to have dualistic feelings, so good ergonomically, yet so slow and the switches always jam. I wish I went with scimitar.
Within the stock market there is a war in favor of plain digits (money) , stock market warlords they can exterminate the enemy in a single day by performing strategical planing.
Many small brands with innovative products were exterminated within the stock market, examples which I still remember this is AUREAL 3D and 3DFX.
Even today the market of computer products this is not equal in size with the other market sectors.
Especially now with Covid 19 , the cash flow will be much harder to find.
In order for a company to survive within a bad day in the stock market this should have the necessary financial resources in cash.
If Corsair thinks that it can conquer the American market overnight this is a very long shot.
I think there was more talk in 2015.
And then again last year: www.reuters.com/article/us-corsair-m-a/corsair-hires-banks-to-explore-sale-or-ipo-sources-idUSKCN1QA2FA
#memereference
And therefore if the sons truly love their parents, they will have to temporarily incinerate any PC related shopping list.
I knew of a saying those who don't struggle for food struggle with boredom. It was very striking, though I cannot recollect.