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:
  • 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
The IPO doesn't have an intended filling date and the $100 million listed in the offering may very well be a placeholder so we will likely see various changes in the coming weeks.
Source: SEC
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23 Comments on Corsair Files For $100 Million Initial Public Offering

#2
john_
They can stick with Intel and Nvidia for guaranteed success.
Posted on Reply
#3
Uskompuf
TheLostSwede
@Uskompuf Corsair started out selling Cache or COASt modules, not DRAM.
Good point I jumped ahead a bit too much :)
Posted on Reply
#5
TheLostSwede
thesmokingman
Insane time to try for an ipo.
Corsair has done great financially these past six months so...
Also, their investor wants their investment back, so not much choice.
Posted on Reply
#6
lexluthermiester
This is not going to be good for Corsair. They are better off staying a private company..
Posted on Reply
#7
freeagent
I’d rather see them file for chapter 11.

:cool:
Posted on Reply
#8
Fourstaff
EagleTree ready to cash out and move on? Their net income is really small compared to their revenue, whoever buys them will try to slash costs.
Posted on Reply
#9
mtcn77
In my opinion, I have not preferred to use their products however I have not been happy with leaving them in the sidelines. The product their contemporaries make has a bad reputation for malfunctioning and although the company which makes them takes good care of its customers, the product cannot be fixed eventhough the RMA procedure was very consumer friendly.
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.
Posted on Reply
#10
remixedcat
lexluthermiester
This is not going to be good for Corsair. They are better of staying a private company..
This. The worst timing for this move as well.
Posted on Reply
#11
MCJeeba
This gets announced with Corsair like, every 3 years for the past decade and nothing happens.
Posted on Reply
#12
lexluthermiester
MCJeeba
This gets announced with Corsair like, every 3 years for the past decade and nothing happens.
Really? I don't remember hearing this before.
Posted on Reply
#13
kiriakost
lexluthermiester
This is not going to be good for Corsair. They are better off staying a private company..
Yes will agree with that too, now lets remember to the world of the why ?

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.
Posted on Reply
#14
mtcn77
kiriakost
Especially now with Covid 19 , the cash flow will be much harder to find.
Really? With nowhere to go, you would think people would upgrade their dusty old pcs which they have...
Posted on Reply
#16
R-T-B
remixedcat
This. The worst timing for this move as well.
Honestly, not for a tech company. That's the only segment money is flowing well in right now.
mtcn77
Really? With nowhere to go, you would think people would upgrade their dusty old pcs which they have...
Exactly. They are and it's evident in the stock market.
Posted on Reply
#17
mtcn77
R-T-B
Honestly, not for a tech company. That's the only segment money is flowing well in right now.



Exactly. They are and it's evident in the stock market.
I'm struggling right now not to reply with a caption. If the administrators would allow me a special astroturfing domain, I would reply in kind with two astronauts in their space suit. As it should be.:)
Posted on Reply
#18
R-T-B
mtcn77
I'm struggling right now not to reply with a caption. If the administrators would allow me a special astroturfing domain, I would reply in kind with two astronauts in their space suit. As it should be.:)
And then I'd have to shoot you.

#memereference
Posted on Reply
#19
mtcn77
R-T-B
And then I'd have to shoot you.
It always has been a sharknado's basic instinct while an astroturfer's pipe dream was to reply everything with internet memes.
Posted on Reply
#20
remixedcat
mtcn77
It always has been a sharknado's basic instinct while an astroturfer's pipe dream was to reply everything with internet memes.
and then I come in with a FIRENADO
Posted on Reply
#21
mtcn77
remixedcat
and then I come in with a FIRENADO
2020 came in earnest, "It is fine."
Posted on Reply
#22
kiriakost
mtcn77
Really? With nowhere to go, you would think people would upgrade their dusty old pcs which they have...
Food on the table this is a higher priority for the working people.
And therefore if the sons truly love their parents, they will have to temporarily incinerate any PC related shopping list.
Posted on Reply
#23
mtcn77
kiriakost
Food on the table this is a higher priority for the working people.
And therefore if the sons truly love their parents, they will have to temporarily incinerate any PC related shopping list.
Procrastination, I would say. City people have made vendors richer with their vapid concerns...
I knew of a saying those who don't struggle for food struggle with boredom. It was very striking, though I cannot recollect.
Posted on Reply
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