Strategy in TECH...
Without a doubt, Fiscal 2023 has been a challenging year for Masimo in many ways. And this week, as the company reported its results for the third quarter (Q3) that ended on September 30, 2023, that reality couldn’t be any clearer. With revenues down 13% and net income down more than 72%, about all the company could say is – wait until next year…it is going to be great.
Noting solid gains in their trade show segment, Emerald Holding, Inc. (NYSE: EEX) management proclaimed satisfaction with their fiscal 2023 third-quarter results. However, while the tradeshow business – the segment containing its CEDIA Expo show – saw a post-COVID increase in attendance and revenues, all was not rosy, as the company reported a dramatic drop in profits. Not only that but continued trouble in its content business – the segment with its CE Pro and Commercial Integrator (and other media brands) properties – saw revenues decline and even forced the company to revise its overall annual financial guidance downward.
On Monday, WiSA Technologies, a developer and licensor of spatial, wireless sound technology, publicly announced the pricing of a new $4.8 million public offering of Series B convertible redeemable preferred stock and warrants. Separately, and a little less publicly, the company also filed a Form 8K with the Securities and Exchange Commission (SEC) revealing that it is “pursuing a potential strategic transaction.”
The result of both of these pieces of news is that the company’s stock value nosedived as investors turned thumbs down on this latest turn of events at the troubled organization.
VOXX International Corporation (Voxx) (NASDAQ: VOXX), a manufacturer and distributor of a wide range of automotive and consumer electronics products, late on Tuesday released its second quarter of fiscal 2024 financial results for the period ending August 31, 2023. These results mostly echoed those of its first quarter and the company says it is still dealing with multiple negative macroeconomic factors such as a durable drop in consumer spending, inflated retail inventories, a UAW strike, and remaining supply chain challenges. However, the results in the second quarter were slightly more moderate than in the first quarter and there was a modest improvement on a sequential basis.
Audio America, Inc., the surviving entity that merged with Next Level Distribution and Next Level Fulfillment has filed formal paperwork for an Assignment for the Benefit of Creditors (ABC), a form of receivership, with the Circuit Court of the 17th Judicial Circuit in Broward County, Florida. The move was widely rumored but only confirmed Tuesday. Also joining in this ABC is another entity known as Ecomhalo, LLC, a related company.
The news confirms much of what we heard last month regarding the impending liquidation of a major U.S. distribution company.
VOXX International Corporation [NASDAQ: VOXX] (VOXX Int’l) announced this morning before the stock market opened several executive changes, including the extension of the employment agreement of VOXX Chief Executive Officer Pat Lavelle. How did Wall Street react to this news? The value of VOXX stock showed a significant decline on a day when the NASDAQ exchange, where VOXX is traded, saw an overall increase of nearly +2/3rds of a percent.
Next Level Distribution is reportedly planning to shut down operations after it completes the liquidation of its existing inventory, according to multiple reports. The multi-location distributor/fulfillment house of major brands of automotive and residential electronics was founded in 1993, first under the name of Audio America. In 2020 it changed its name to Next Level Distribution.
Lenbrook Corporation, a Canadian company that holds a portfolio of premium specialty brands, announced this morning it has acquired the assets of MQA, ltd., the U.K.-based company behind the Master Quality Authenticated (MQA) high-resolution audio encoding system in a transaction it hopes will breathe new life into the technology that had fallen into a form of receivership upon the loss of its major financial backer. Terms of the deal were not disclosed as part of this announcement.
Last week, Snap One Holdings Corp. (Nasdaq: SNPO) released its financial results for the second quarter of fiscal 2023, the 13-week period ending June 30, 2023. The company reported mixed results with a continuing sales decline but with a reduced net loss in the quarter.
Masimo Corporation (Nasdaq: MASI) (Masimo) announced the final financial results for the second quarter of fiscal 2023, the 90-day period that ended on July 1, 2023. About three weeks ago, the company released a preliminary report on the quarter, alerting investors to an unexpected drop in revenues. As they predicted, revenues did decline, although not as poorly as they suggested might be the case.
