Turtle Beach Corp.’s board decided not to sell the company for now, and shares plunged more than 30% in after-hours trading Monday as the company revealed worse than expected financial results and reduced its annual guidance. Leaders of the company, which sells headphones made for videogame systems as well as other gaming gear, had talks with 109 parties in a previously announced review of strategic alternatives, but could not find a buyer for now, according to a Monday afternoon announcement. “The Strategic Committee received robust interest from multiple strategic parties, however, due to a number of factors including current market dynamics, the challenging financing environment, inflation affecting consumer discretionary spending and ongoing integrations of prior acquisitions, these parties were ultimately not in a position to move forward with an acquisition at this time,” according to a statement. In addition, Turtle Beach reported a loss of $17.8 million, or $1.08 a share, down from a profit of 9 cents a share a year ago, on revenue of $41.3 million, down from $78.6 million last year. After adjusting for “non-recurring business costs,” the company reported a loss of 77 cents a share, down from adjusted earnings of 14 cents a share a year ago. Analysts on average expected adjusted losses of 47 cents a share on sales of $49.1 million, according to FactSet. Turtle Beach executives also drastically reduced their full-year sales outlook to a range of $250 million to $275 million, after previously guiding for roughly flat sales from last year, when the company produced revenue of $366.4 million. Turtle Beach shares have already declined 37.2% so far this year, while the S&P 500 index has dropped 13%.
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