Strategy in TECH...
Two members of the Board of Directors of CEDIA have abruptly resigned within 24-hours of each other in what appears to be a sign of turmoil roiling the organization’s Board, multiple sources told us. According to reports, Richard Millson of Millson Technologies and Bob Brown, a well-known industry consultant, have both abruptly resigned their positions on the Board.
Nortek, Inc. stock dropped more than 9.3% in early afternoon trading Wednesday in the wake of a report released by the company after the close of business Tuesday showing results for their fiscal third quarter. With sales and profit declines in key business segments – as well as for the company overall – it appears that Wall Street analysts are growing tired of waiting for the promised benefits of the company’s multi-year restructuring program, begun four years ago.
The company reported overall sales for the quarter of $618.5 million or 3.8% below the $642 million booked in the third quarter last year. The profit picture was even bleaker with a net loss of $14.4 million in the quarter this year as compared with a net profit in the quarter last year of $4.6 million.
Surprisingly, the AVC division saw sales drop an astonishing 36.8% to $30.1 million – well off the $47.6 million in the quarter last year – in the wake of the spin-off of TV One and the company’s exit from commercial AV businesses.
This week, the Custom Electronics Design & Installation Association (CEDIA) announced the attendance for this year’s just-completed Expo, which they say came in at 18,700 attendees with 510 exhibiting companies. This level of attendance means only 200 people more visited the 2015 Expo – or a paltry 1% over the Expo attendance last year of 18,500 – and is disappointingly flat in a year that many hoped would show growth.
Richard Millson, owner of Millson Technology and founder of the new Millson Custom Solutions, didn’t see as much of the 2015 CEDIA Expo as he had hoped. The reason? He was behind closed doors with rotating groups of integrators in a continual series of mostly standing-room-only presentations of his latest creation…CinemaFrame™. And judging from the level of interest the company received from integrators – the company has hit the ground running in this, the official launch of an all-new product concept.
Nortek, Inc. announced late Thursday that it has called off talks with an unnamed party who had tendered an unsolicited offer. According to the Wall Street Journal and as we had previously reported, that suitor was United Technologies. Nortek stock closed Friday at $63.97/share or off 3.8%, on a day when the Dow was up .2%.
Seattle, WA-based AudioControl announced Wednesday that it is launching two all-new AV receivers in their Concert AVR line featuring Dolby Atmos surround technology and 7-channels of high-current, high-power amplification. These new models, the AVR-9 and AVR-7, are expected to ship sometime in fourth quarter of 2015.
Tipped off by a source, we have learned that the turmoil at Thiel Audio continues, as yet another wave of executives have arrived and departed – leaving the company ostensibly leaderless and seemingly adrift in the market. The revolving executive door at Thiel seems to be an annual event as we await news on yet another team to jump in the saddle…or into the fire, depending on your perspective.
Bluesound, a division of Lenbrook America, has cut a deal with Best Buy that will result in a national roll-out of the company’s line of high-quality digital multi-room music systems through Best Buy’s Magnolia Design Center locations. The agreement will begin to take effect later this month in a phased introduction into the first 25 locations.
Sharp Corp. announced this week that it will begin to ship 8K ultra high-definition flat panel TVs and monitors by the end of October. Initially, sales are targeted at certain industrial and commercial markets – with the company saying the very first shipments are headed for broadcast stations and movie studios. This is the first step in commercializing the technology that the company has been working on for years now.
After the Wall Street Journal revealed late last month that United Technologies Corp. (UTC) was in talks to potentially acquire Nortek, Inc., we questioned why UTC would even want to acquire Nortek. Within days of our post, investment advisory firm The Motley Fool (TMF) also raised the issue in a post last week about this not-quite-so-obvious marriage. Well, maybe it’s more like a dalliance than a marriage…at least at this point.
We found the Motley Fool’s analysis interesting – both in their clear-eyed assessment of Nortek and why the acquisition may in fact make sense for United Technologies.
