Operator: One moment for our next question. Our next question comes from the line of Martin Yang from Oppenheimer. Your line is open.
Martin Yang : Good afternoon. Thank you for taking my question. Juergen, the first question to you is, you know assuming other competitors just are also thinking about expansion in their product portfolio, can you maybe elaborate on how do you intend to differentiate Turtle Beach products across the different categories or across the main categories you’re competing?
A – Juergen Stark: Sure Martin. Our reputation and our leadership in console headsets for more than 13 years now is really driven by the product; products which have introduced innovations at a pace and importance to consumers that are unparalleled in the category. And you know that innovation, the sustained long term innovation is part of what’s behind the roughly 375 patents that the company has. So that first and foremost is why we have one in the past and why we believe we continue to win in these new categories. And frankly, the flight simulation product, a new category for us. We hired in the right expertise with deep knowledge of that category from an engineering and a product standpoint; launched the first product and took the number one share position in the U.S. in its first full year, and that product €“ that was driven by a product that had high quality and unique innovations relative to anything else that had been in the market or was in the market at the time.
Martin Yang : Got it, thank you. My next question is about ROCCAT. You know we’re almost four years into the acquisition. How do you think about the two brands, and is there any intention for you to maybe consolidate to or everything under the Turtle Beach?
Juergen Stark: That’s a great question, Martin. You know multi-platform gaming is certainly becoming more and more pervasive. We have intentionally made more and more of our console headsets multi-platform to ride that wave essentially, and we suspect actually that a lot of our console headsets might be being used by PC gamers. And I commented on that in the prepared remarks, with us having the number three brand loyalty position among PC, hardcore PC gamers in the United States. So all that said, right now our plans are to continue with the ROCCAT brand, while making consumers more and more clear that ROCCAT is part of Turtle Beach, part of that brand and that reputation, and that retail strength and everything that comes along with that, and then we’ll see how that progresses over time.
Martin Yang : Got it, thank you. My final question is on competition. Based on your observation of 12 months, have you seen any new competitors coming onto the gaming accessory space from perhaps non-gaming background, and you know how would you characterize the overall threat to your market share?
Juergen Stark: No meaningful new competitors outside of the category come to mind Martin. You know what we’ve seen in the last year is the same competitors. Everyone is competing across multiple categories, which is a key driver for us to have expanded our TAM from $1.4 billion to over $8 billion in the last few years, is to play in all of these categories, deliver great products to all gamers across all categories over time, because that’s also what the competition is doing, and it opens up a lot of white space for us that can help us drive growth. What we’ve seen competitively really that’s been a change last year is just really aggressive competitive pricing and promotional activity. It might be driven by the fact that we had a much more conservative forecast than others in the category, and that €“ you know that may have led others to have a much bigger inventory issue than we had in a market downturn last year.
And so we hope that subsides and goes back to normal as the competitors you know sell through their inventory.
Martin Yang : Got it. Thank you, Juergen.
Operator: Thank you. And I’m not showing any further questions at this time. I’ll now turn the call back over to Juergen Stark for closing remarks, Juergen.
Juergen Stark : Thank you very much. We look forward to speaking with our investors and analysts again in May. Thanks for your participation and interest in our company.
Operator: Thank you ladies and gentlemen, this concludes today’s conference. Thank you for participating. You may now disconnect. Everyone, have a great day!
