No tyranny is so irksome as petty tyranny: the officious demands of policemen, government clerks, and electromechanical gadgets.
Edward Abbey
Strategy in TECH...
No tyranny is so irksome as petty tyranny: the officious demands of policemen, government clerks, and electromechanical gadgets.
Last Wednesday, I got a wake-up call the likes of which I never expected…and it has changed my life. Oh yeah, not hyperbole. It started with a simple walk and ended with what I think demonstrates an important lesson in life…and an important lesson in business.
Pioneer Corp. is seeking to form a business and capital alliance with Japan’s NTT DoCoMo Inc. according to a story today in The Japan Times. The company will also try to enhance its ties with Mitsubishi Electric Corp. “in a bid to survive” in its main car electronics business with a stronger financial footing.
The announcement was made the same day that the company announced their Fiscal 2013 results in which sales came in at ¥451.8 billion ($4.4 billion), up 3.5% over ¥436.8 billion. But more importantly, the company announced a big loss of ¥19.6 billion ($191.6 million)…much worse than the profit of ¥3.7 billion last year.
Sharp Corp. announced this week the worst net loss in its long corporate history for the fiscal year that ended March 31, 2013. Booking a net loss of ¥545.35 billion ($5.4 billion), the company has aggressively moved to shake up the company management replacing both the President and Chairman in a rare (for a Japanese company) public rebuke of company leaders. And in what may be a signal to the market, the new President has no ties to the company’s TV business…and he’s talking tough.
Nortek, Inc. reported their financial results from the first quarter of fiscal 2013 late last week. The results were mixed as the company deals with a struggling economy and a difficult internal restructuring that is impacting costs now, with any resulting benefits to be realized still down the road. But for the first time in several quarters, the company’s Technology Solutions Segment (TECH) actually offered a positive contribution with growth in both sales and profits offsetting losses in other divisions. But TECH’s success was largely due to a recent acquisition in the security business.
I believe that a scientist looking at nonscientific problems is just as dumb as the next guy.
Two key banks in Japan announced yesterday that they will extend Sharp Corp. an additional line of credit of ¥150 billion ($1.5 billion) over and above all of their other financing. Mizuho Corporate Bank and Bank of Tokyo-Mitsubishi UFJ originally had considered a ¥100 billion line, but ultimately decided to up the ante with each bank kicking in ¥75 billion – a real lifeline to the struggling electronics manufacturer.
by Ted 16 Comments
Much has been written on the changes at Lexington, KY-based Thiel Audio Products Company (Thiel) in the wake of its purchase by a group of Tennessee investors that we first reported last November. Shortly after their acquisition, strata-gee.com was invited to speak with Bill Thomas – one of those Tennessee investors and now the new CEO of Thiel Audio. And a couple of months after that, we had the opportunity to speak with new Thiel interim COO and Board member Bob Brown.
But many Thiel-related reps and dealers kept asking us about co-founder and former President Kathy Gornik. Some of this curiosity was related to rumors that Gornik had been forcibly removed from the respected high-end loudspeaker company that she helped found. And some of the interest centered around an unanswered question, not covered by any of the press (including Strata-gee.com) as to why Gornik decided to sell the company.
Last week, Yamaha Corporation released its financial results for Fiscal Year 2013 (the period ending March 31, 2013) giving the stock market and financial analysts a pleasant surprise as final numbers handily beat both their February 6th revised forecast and last year’s results. Thanks to a strong fourth quarter, Yamaha hit sales for the year of ¥366.9 billion ($3.7 billion) or 2.9% more than last year’s ¥356.6 billion. Yamaha also reported increased operating income, ordinary income, and net income.
And yet, surprisingly, the company also announced it would replace its President and Representative Director at the upcoming directors meeting to be held on June 26, 2013. Why?
Last month we told you about the [probably final] closing of 3vNet…the third or fourth time it – or more accurately, its predecessor company Colorado vNet – has gone through that process. At the same time CEO Mike Anderson announced that closing, he also announced the launch of a new company called Automated Control Technology Partners – a company that he said would ultimately have a stable of brands under its control.
A former dealer, manufacturer, distributor & more. Focusing on business strategy, my goal is to help you make better decisions for greater success.