Strategy in TECH...
With the final closing of its sale of Sound United to Harman International, Masimo Corporation (Nasdaq: MASI) has now submitted a Form 8-K/A with the Securities and Exchange Commission (SEC), which seeks to provide recast financials for its last three years, taking Sound United out of its numbers. Masimo also revealed the impact of some last-minute adjustments, as per its agreement with Harman.
The long-awaited closing of Masimo Corp.’s (NASDAQ: MASI) sale of Sound United (formerly Masimo Consumer) to Harman International, a subsidiary of Samsung Electronics, has been formally completed. Both parties of the transaction put out their own separate announcements, with Masimo’s version quite short and perfunctory, while Harman’s gave little more than an inkling of what is to become of Sound United.
AVPro Global Holdings, LLC – parent company of AVPro Edge, AudioControl Pro, RTI, Murideo, Bullet Train, and ThenAudio – has been officially recognized by Inc. Magazine as one of the fastest-growing private companies in America. The magazine has officially placed AVPro Global on its annual list of fast-growing companies known as – the Inc. 5000.
On Monday, in an 8-K filing with the Securities and Exchange Commission, Masimo Corporation (Nasdaq: MASI) informed regulators that William Jellison, a member of the Masimo Board of Directors, has resigned his position as of that same day. No reason was offered as to why Jellison chose to leave his relatively new role with the company, presenting us all with a bit of a mystery.
Sonos, Inc. (Nasdaq: SONO) released its financial results for the third quarter of Fiscal Year 2025, which included a double-digit percentage revenue decline and a significant net loss in the millions of dollars. Yet Sonos management declared victory with new CEO Tom Conrad calling the quarter a “…solid step forward for Sonos,” and CFO Saori Casey joining in by saying, “Q3 was another quarter of solid execution…”
Are we watching the same movie here?
After markets closed on Tuesday, Masimo Corporation [Nasdaq: MASI] released its results for the second quarter of Fiscal Year 2025, and to my eyes, they looked really solid. Revenues grew by a respectable 8%, operating profits grew by 54%(!), operating margins improved by 520 basis points (that’s 5.2% more than last year), and earnings per share shot up an eye-popping 78%(!) What’s not to like?
Yet on Wednesday, the first trading day after these results were announced, the value of MASI shares actually dropped 12%! What?!?!
Enigmatic, mercurial CEO Elon Musk confirmed to Reuters news that Tesla has signed a deal with Samsung Electronics to manufacture and supply Tesla’s next-generation AI chips, the AI6. The contract is said to be valued at $16.5 billion.
Gentex Corporation (Nasdaq: GNTX) has reported its financial results for the second quarter of Fiscal 2025, the 90-day period that ended on June 30, 2025. For the most part, results looked better than initially expected, although much of the upside improvement in revenues was largely thanks to the acquisition of VOXX Int’l, the company that owns audio brands Onkyo, Integra, and Klipsch as well as other automotive electronics brands. That acquisition closed on April 1, the first day of the second quarter.
However, the profit contribution of VOXX was a different story.
She was a fresh-faced, 20-something college student in the late 1980s when, on a brief pause from her university studies, EveAnna Dauray took a job on the production floor at Vacuum Tube Logic, a high-end audio company in California run by David Manley and his son Luke. There is no way she could have known it at the time, but she was about to embark on a crazy, exciting, at times painful, though always rewarding, epic journey. It was a journey that spanned some four decades and would see her rise from an entry-level production floor worker to owner and President of Manley Laboratories, Inc. (a company split off and independent from VTL), which she recently successfully sold to industry entrepreneur Dirk Ulrich…achieving the American Dream by providing her with the resources and the freedom to pursue with passion the next exciting phase of her life’s journey.
Two major South Korean tech behemoths, Samsung Electronics and LG Electronics, have released preliminary reports on their financial results for the second quarter of fiscal 2025, and these results paint a troubling portrait of a changing trade environment where declining profits and softening consumer demand foretell a challenging road ahead. Both companies reported modest revenue declines and more dramatic operating profit declines as each scrambles to adjust operations for a challenging business environment.
