Last week, Strata-gee was the first in the industry to report the financial second quarter results for Nortek, Inc. and while the overall news had many positive points – the results for the now-separately reported AV group was quite negative, driving the overall company into a net loss of $46.2 million. Our story hit pretty big, and drew a lot of “eyeballs” from around the industry.
Financial
Needing Cash, Sharp Will Sell Land Under Major Factory
Sharp Corp. is said to be in the process of selling the land under one of its major factories in Osaka, Japan, in a bid to raise cash. The transaction, reported by the Nikkei, is said to be happening as early as the current fiscal year.
But that’s not all the company is selling… [Read more…] about Needing Cash, Sharp Will Sell Land Under Major Factory
Nortek’s Struggling AV Division Forces Company to Book a $46.2 Million Q2 Net Loss; Burke is Out
Sean Burke, Head of Technology Solutions Group is Leaving Company
Nortek Inc. released yesterday the financial results for their fiscal second quarter and first half showing a solid overall sales gain of 13.9% to $718.6 million, up from $630.7 million in the same quarter last year. Sales increased at a more moderate pace for the first half, coming in at $1.266 billion or 10.1% higher than the $1.149 booked last year.
But in a bit of a surprise, the company chose to break out the results of their AV division separately – clearly exposing what many had suspected for a couple of years now – this division is in serious trouble. Even more surprising, in a filing with the SEC, the company revealed that Sean Burke, Group President of the Technology Solutions Group is leaving the company “to pursue other interests.”
See more on just what Nortek’s latest financial results show… [Read more…] about Nortek’s Struggling AV Division Forces Company to Book a $46.2 Million Q2 Net Loss; Burke is Out
Ingram Micro Set Q2 Sales Record, But Net Profits Get Slammed by Reorganization Costs
Ingram Micro, Inc. reported the results for their fiscal second quarter and first half last week and the report was generally positive. The company noted that worldwide revenues in the quarter increased $600 million or 6% to a new Q2 record of $10.9 billion which they attributed to, among other things, “new mobility wins, robust networking sales and solid systems revenue in North America…strengthening retail and consumer markets in Europe; and better demand in Latin America.”
Ingram Micro’s press released barely mentioned that net income dropped during the quarter. But a closer look at its SEC filing showed a meaningful drop in net income of 27.4% for the quarter and 36.8% for the half.
If things are going so well, why the drop in net profits at Ingram Micro?… [Read more…] about Ingram Micro Set Q2 Sales Record, But Net Profits Get Slammed by Reorganization Costs
Good News: Sharp is Forecast to Lose 2 Billion Yen in Fiscal 1st Quarter
Report Says Sharp Plans to Withdraw from Consumer Electronics & Solar Businesses in Europe
In a new report out of Japan, the Nikkei is forecasting that Sharp Corp. will book a net loss of around ¥2 billion ($19.6 million) for their fiscal first quarter (April – June) this year. The report further says that the company plans to exit both the consumer electronics and solar panel businesses in Europe in order to refocus their efforts on other markets.
Why is a ¥2 billion loss good news? See more below… [Read more…] about Good News: Sharp is Forecast to Lose 2 Billion Yen in Fiscal 1st Quarter
After Disappearing Completely, TiO Stages an Improbable Comeback
In what was a complete surprise to many last week, several industry reps and dealers received a letter from Audio Control Technology Partners (ACTP) CEO Mike Anderson that announced the return of Turn it On (TiO) to the market. TiO, as you might recall, lost funding back in May and ultimately disappeared from view…all before they shipped their first product.
A Strata-gee EXCLUSIVE: TiO’s Anderson shares the inside scoop on recent developments… [Read more…] about After Disappearing Completely, TiO Stages an Improbable Comeback
Sony, Desperate to Cut Overhead, Launches Early Retirement Incentive
Sony Corp., the troubled Japanese giant consumer electronics company, has launched an internal early retirement program in a bid to cut overhead in its headquarters. The company has already announced major worldwide staff cutbacks, but it hopes this new incentive for headquarters staff will cut administrative costs by about 30%.
See more about this newly announced initiative… [Read more…] about Sony, Desperate to Cut Overhead, Launches Early Retirement Incentive
Pioneer Sells AV Business to Private Equity Company & Onkyo
BREAKING NEWS
We first told you about Pioneer’s plans to sell off their struggling AV division just last month in a SYNCH Breaking News exclusive. Now word comes out of Japan as to the identity of the buyer for this business – a group that includes a private equity company and Onkyo.
See some very interesting details on this announcement… [Read more…] about Pioneer Sells AV Business to Private Equity Company & Onkyo
Harman Acquires Headphone Maker Yurbuds
Harman International Industries, Inc. announced today that is has acquired St. Louis-based Yurbuds, LLC., a manufacturer of headphones. Terms of the transaction were not disclosed. The acquisition seems surprising, given the fact that Harman already owns brands such as JBL and AKG that already offer headphones.
Why would a company that already offers headphones, acquire a headphone company? See more… [Read more…] about Harman Acquires Headphone Maker Yurbuds
Harman Takes Control; Acquires AMX
The release came across the wire at 8:00AM this morning and caught the industry totally off-guard – Harman International Industries, Inc. announced that it has signed an agreement with privately-held The Duchossois Group, Inc. to acquire its AMX, LLC subsidiary for $386 million. The move was not an immediately obvious one for Harman, which has been largely focused on building its automotive electronics division into a worldwide powerhouse.
