Strategy in TECH...
VOXX International Corporation (NASDAQ: VOXX) announced its financial results for the second quarter of fiscal 2023 this week and they were quite sobering. Not only did revenues decline by double digits, but the company had a dramatic increase in net loss to nearly $11 million.
What went wrong?
It’s a remarkable event when someone can claim a legitimate first. In all my years in this crazy Tech business, those firsts are getting fewer and further between. But Emerald Expositions, owner of the CEDIA Expo trade show can claim a legitimate first that I have never seen before from any show. They gave the cold shoulder to any media organization not named CE Pro.
Usually, shows want good media relations across the board with happy media writing positive stories and building an upbeat buzz about their event. Not Emerald…they are quite satisfied to help just one media outlet to run positive stories about their event…their very own CE Pro.
Walmart surprised analysts in its latest earnings report for its fiscal second quarter. After having issued a warning last month that its profit may drop as shoppers were feeling the effects of high inflation and focusing purchases on necessities like food rather than discretionary (and more profitable) items such as electronics. But on Tuesday, the company reported solid revenue increases and although earnings tightened a little, they still beat analysts’ forecasts.
In a tough economic environment for retailers, how did they do it? The company says they are attracting more middle- and high-income shoppers. These high-income consumers are ‘trading down’ – an effect that has been discovered in past times of economic slowdowns and recessions. And it seems to be happening now…
Masimo Corporation (NASDAQ: MASI), a global designer and producer of medical products and associated services that recently acquired Sound United, reported its second quarter fiscal 2022 results this week. With this filing, we get to see real data on the size and performance of Sound United, which the company acquired in April.
Wall Street hates surprises, especially when public companies fail to hit analysts’ estimates and when the company is forced to cut previously issued financial estimates based on a deteriorating macroeconomic environment. Sonos hit a surprisingly sour note in its report today on fiscal 2022 third-quarter results – soundly missing expectations, cutting forward guidance on future results, and announcing the CFO is leaving the company. The result of this terrible trifecta of bad news? Sonos stock dropped as much as 20% in after-hours trading.
On Monday, Emerald Holding, Inc. (NYSE:EEX) (Emerald), one of the nation’s leading business-to-business exposition companies and owner of the CEDIA Expo event and CEPro trade magazine, announced the results for their fiscal second quarter, the period that ended on June 30, 2022. The results showed a rebounding top line, with revenues increasing 376% over last year’s COVID-impacted quarter – while the company still booked a net loss, although less of a net loss than in the same quarter last year.
Late last week, Sony Group announced that they were cutting their net profit forecast for the current fiscal year, fiscal 2022 which ends March 2023. Why are they trimming their profit expectations? It appears that Sony is experiencing its version of a post-COVID Peloton/Netflix sales decline as video game sales are weakening and its costs related to a recent acquisition are rising.
Shizuoka, Japan-based Yamaha Corporation – the world’s largest musical instrument maker that also offers pro, commercial, and residential audio gear is warning markets that the global chip shortage – while improving marginally lately – is still creating challenges that constrict manufacturers’ ability to achieve production goals. It is the first such warning I’ve seen from a company well known for acoustic pianos – but whose electronic instruments and audio gear generate more revenue.
VOXX International Corp. announced its fiscal 2023, first-quarter results late Monday, reporting that it saw sales declines, deepening operating losses, and a swing to a net loss in the quarter. Shares in VOXX declined 9.44% in value in trading Monday – and after-hours trading in the early evening pointed to another nearly 3% decline in shares. By comparison, the S & P 500 saw overall shares decline 1.15% on Monday.
Samsung Electronics is taking action to hold back on procurement orders and asking suppliers for concessions, such as delayed deliveries, order reductions, and more in the wake of a concerning buildup of inventory. While the action is said to be temporary, concerns over a slowing global economy make it difficult to determine how long the company will deem these actions are necessary.
