Video game headset maker Turtle Beach Corp. on March 24 reported annual revenue of $162.7 million, down from $186.2 million in 2014, attributing the drop to a faster than expected decline in revenues from older generation products and the strong dollar’s negative impact on its international sales.
Revenue for the fourth quarter was $84.6 million, down from $92.3 million. The decrease was partially offset by a 31 percent increase in new generation headset sales.
Gross profits for the year were $40.7 million, down from $50.7 million in 2014 as the company’s profit margin fell from 27 percent to 25 percent. Turtle Beach said the lower margin was in part due to higher promotional credits used to clear its older generation and licensed headset inventory.
Turtle Beach expects revenue of $160 million to $172 million this year.