JVC Kenwood Corp., the troubled consolidation of two struggling Japanese brands, seems to have turned a corner despite reporting fiscal Q2 and first half revenue declines and continuing losses. The company, which in January surprised many by announcing its decision to withdraw from the consumer electronics business to focus on B-to-B business, announced with pride that – although still showing a loss – the company has seen solid improvement in profits with dramatically reduced losses.
Financial
Yamaha’s Fiscal First Half Results are Mixed
Yamaha Corporation released the results for its fiscal first semester or first half of the fiscal year 2015 (April 1, 2014 – September 30, 2014) with results generally positive, but mixed. Overall consolidated sales increased 4.4% to ¥206.4 billion ($1.9 billion) as compared to ¥197.7 billion ($1.8 billion) in the same period last year. But of some concern is the fact that only one of its four major business segments showed an increase in operating profits – and two of the four lost money during the period.
See more on Yamaha’s financial performance… [Read more…] about Yamaha’s Fiscal First Half Results are Mixed
Nortek Releases Q3 Results; Has AV Turned a Corner?
Nortek, Inc., a diversified manufacturer of commercial and residential products largely targeted towards the new construction business, announced on Monday the financial results of the third quarter of their current fiscal year. Overall, the results were mostly positive, although two of their business units saw revenues decline in the quarter. Surprise…surprise…neither of them were the newly designated AVC (Audio Video Control) segment, as you (and we) might have suspected.
AVC showed a sales increase. Does this mean AVC has turned a corner in results?… [Read more…] about Nortek Releases Q3 Results; Has AV Turned a Corner?
Everything’s Fine, Says Control4; But Investors See Monsters Under the Bed
This story is being written on Halloween – hence, the “monsters” in the headline. On Thursday, Control4 released the financial results for their fiscal third quarter and held a conference call for analysts and investors. The numbers all looked good and the management team rightly crowed about their prowess. But during the Q&A session tough questions emerged…
See what had some analysts a little spooked… [Read more…] about Everything’s Fine, Says Control4; But Investors See Monsters Under the Bed
Ingram Micro’s Q3 Financials Show Sales Up; Profits Down
Ingram Micro, Inc. released the financial results for their fiscal third quarter (the period ending Sept. 27, 2014) showing generally positive results. Sales for the quarter increased to $11.2 billion, a $1 billion or 11% increase over the $10.2 billion for the same period last year. According to Ingram Micro CEO Alain Monié, the increase was due primarily to “new wins” and “strong market share.”
But while gross profits were up, gross margins, operating income, and net income were all down for the period…and that fact led us to take a closer look.
See our report below on the financial results for Ingram Micro… [Read more…] about Ingram Micro’s Q3 Financials Show Sales Up; Profits Down
Big Changes at Core Brands: Pollock Retires & Keller is Out
BREAKING NEWS
We received word late today of big changes taking place at Core Brands as the company announced that President Bill Pollock will retire “after 27-years leading Panamax-Furman” and Core Brands. Pollock’s retirement becomes effective at the end of the year and he will be replaced by Joe Roberts, currently Core Brands Vice President of Products and Marketing.
The company also announced that Senior Vice President of Sales Dave Keller will be also leaving the company “before the end of the year.” Interestingly, there was no reason given for Keller’s departure.
See more on these dramatic developments… [Read more…] about Big Changes at Core Brands: Pollock Retires & Keller is Out
Pioneer Says Merger Talks with Onkyo Continue; But Equity Partner Appears Sidelined
Pioneer Corporation released an interesting document on September 12th – while much of the tech media was in Denver for CEDIA – titled Notice with Respect to Basic Agreement for the Integration of Pioneer’s Home AV Business and Onkyo. This curious document, six pages long, gives an update as to the state of the discussions between the parties in the previously announced “basic agreement” between Pioneer, Onkyo, and Baring Private Equity Asia for a “Capital/Business Alliance” related to Pioneer’s Home AV business.
Now, apparently, the deal’s changed…with Baring PE pushed to the sidelines… [Read more…] about Pioneer Says Merger Talks with Onkyo Continue; But Equity Partner Appears Sidelined
Pioneer Fire Sale Continues – Dumps DJ Biz to KKR
Pioneer surprised everyone back in June of this year when word came that it had decided to sell its AV business to Onkyo Corp. and a private equity company. But actually, the gears for this and other deals were set in motion last year when the company launched a new strategic plan to focus on their core business – car electronics, their largest and most profitable division.
Now we learn the company has sold off its once burgeoning DJ business to KKR. See more… [Read more…] about Pioneer Fire Sale Continues – Dumps DJ Biz to KKR
Bain Capital Fails in Its Bid to Restructure D&M Holdings Buyout Financing
In February, we told you about a report from Reuters that Bain Capital was seeking to restructure their financing package originally constructed when they purchased D&M Holdings (now known as the D+M Group) back in 2008. The original package was said to total ¥74.1 billion ($725.2 million), the senior debt portion of which is maturing this month. Reuters suggested at the time that Bain may experience difficulties getting a new deal, despite their financial prowess.
Now we learn that Reuters was right – Bain Capital has failed in its attempt to restructure the D&M Holdings debt.
See more on just what happened when Bain went back to the well on D&M… [Read more…] about Bain Capital Fails in Its Bid to Restructure D&M Holdings Buyout Financing
Private Equity Kingpin KKR Invests into Savant; Sets $215 Million Valuation
The Wall Street Journal (WSJ) reported Tuesday that private equity powerhouse Kohlberg Kravis Roberts & Co. L.P. (KKR) has invested $90 million for a 35% stake in Savant Systems, LLC (Savant). While this is a minority stake, KKR is obviously bullish on the home automation supplier making what the WSJ says is an “eight-figure bet” that places a $215 million valuation on the home automation supplier.
