NEW YORK (TheStreet) -- Shares of Turtle Beach Corp.  (HEAR) were gaining 7.4% to $2.37 on heavy trading volume Wednesday after the sound card and headset maker announced a new partnership with Dutch wholesaler Battery Benelux.

Battery Benelux will help distribute Turtle Beach's new HyperSoudn Clear hearing aid as part of the new partnership. The Dutch company will also extend customer service and technical support to hearing care professionals in the Benelux region.

The HyperSound technology in the hearing aid delivers sound by generating "a highly directional, narrow beam of audio in the air, much like the way a flashlight directs a beam of light," according to Turtle Beach.

"For 25 years Battery Benelux has proven themselves as a key partner for hearing healthcare professionals across the Benelux region, and in doing so has built a reputation based on quality, flexibility and supportive service," Chris Auty, Managing Director for EMEA & APAC for Turtle Beach's HyperSound business, said in a statement.

About 1.2 million shares of Turtle Beach were traded by 12:15 p.m. Wednesday, above the company's average trading volume of about 141,000 shares a day.

TheStreet Ratings team rates TURTLE BEACH CORP as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate TURTLE BEACH CORP (HEAR) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Household Durables industry. The net income has significantly decreased by 264.5% when compared to the same quarter one year ago, falling from -$2.91 million to -$10.59 million.
  • The gross profit margin for TURTLE BEACH CORP is rather low; currently it is at 16.18%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -53.80% is significantly below that of the industry average.
  • TURTLE BEACH CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This year, the market expects an improvement in earnings (-$0.30 versus -$0.39).
  • The revenue fell significantly faster than the industry average of 12.9%. Since the same quarter one year prior, revenues fell by 48.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • HEAR's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.37 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • You can view the full analysis from the report here: HEAR Ratings Report

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