Strategy in TECH...
On Tuesday, a Schedule 13G/A Form was filed with the Securities and Exchange Commission (SEC) on behalf of former Masimo Corporation CEO Joe Kiani. The form is a “Statement of Ownership” and it is used to disclose the amount of ownership of top holders of public company stock. In this filing, Kiani reports to the SEC that he holds 13.2% of Masimo stock.
There’s just one problem…he doesn’t…
Masimo Corporation (Nasdaq: MASI) latest filing with the SEC continues to project an undeniable shift in style that is sure to please investors. The filing, a Schedule 14A (DEF14A) filing with information for shareholders in advance of the April 29, 2025, Annual Meeting of Stockholders, is absolutely stuffed with information on its new management, new goals, new policies, and new shareholder-friendly approach to running this business.
It also had plenty of tasty tidbits for those curious as to what is going on at the company.
On Tuesday, after the close of financial markets, Masimo Corporation (Nasdaq: MASI) announced its financial performance for the fourth quarter and full year of Fiscal 2024. Consolidated revenues grew a mere 2%, and the company booked a net loss of $304.9 million. And yet, investors were thrilled, driving up the value of shares of MASI stock by a double-digit percentage on the first trading day after the announcement.
What?!?!
Masimo Corporation’s (Nasdaq: MASI) Board of Directors announced late Tuesday afternoon that it has appointed Catherine “Katie” Syzman as the company’s new Chief Executive Officer (CEO) and as a director on the newly expanded board. Current Interim CEO Michelle Brennan will transition to a new role as Chairman of the Masimo Board. Finally, Lead Independent Director Quentin Koffey has been appointed Vice Chairman of the Board.
This announcement sets key pieces of the reconstituted management team in place, holding promise of a new era at the medical products company. All of the above changes take effect on February 12, 2025.
In a new report last week, we learned that the Securities and Exchange Commission (SEC) has launched an investigation into RTW Investments over its role in an “empty voting” scheme related to the Masimo Corp. proxy battle which concluded in September at the Masimo Annual Stockholders Meeting. Masimo, now under new board management, has accused former CEO Joe Kiani and RTW of colluding in an empty voting scheme to try and manipulate a board election in their favor and deprive shareholders of their voting rights.
Late Tuesday, Masimo’s communications team reached out to Strata-gee to provide a statement designed to counter or otherwise address unspecified “speculative articles” on the recent pronouncement from Masimo CFO Micah Young that the Sound United division may end up being treated as a “discontinued operation” if the Board decides not to spin it off as a publicly-traded company.
Why are people speculating about that? Read on…
On Tuesday, Masimo Corporation (Nasdaq: MASI) announced the results of its financial performance for the third quarter (3Q) of Fiscal 2024 (FY2024) – the first such report under the new management. While the report comes from the new management, including interim CEO Michelle Brennan, the period of this report is for the quarter that ended September 28, 2024 – meaning the bulk of the actual performance occurred under previous CEO Joe Kiani. Still, the numbers, for the most part, looked pretty good.
In a recent filing with the Securities and Exchange Commission, the new Masimo (Nasdaq: MASI) Board of Directors reaffirmed its non-GAAP 3Q and full-year financial guidance as previously provided by the company to investors. It also notified the commission that the Board has officially terminated the employment of former CEO Joe Kiani.
Perhaps most surprisingly, it has additionally filed a major lawsuit against Joe Kiani and RTW Investments alleging, among other things, that they colluded to create a group that violated federal securities laws.
More patent decisions are being handed down as several long-running patent lawsuits between Masimo Corporation (Nasdaq: MASI) and Apple Incorporated (Nasdaq: AAPL) wrap up. Last week, a jury in the matter of Apple Inc. (Plaintiff) v. Masimo Corporation and Sound United LLC (Defendants) rendered a verdict on a case where Apple accused Masimo of infringing on six of its Apple Watch patents.
Technically, Apple got a win…but realistically, it was a huge victory for Masimo.
While many things have changed in the wake of Joe Kiani’s exit from Masimo Corporation (Nasdaq: MASI) – and many more changes are likely still to come – one thing continues on, the many lawsuits existing between Masimo and Apple Inc (Nasdaq: AAPL). And in the last few days, we have learned of two significant developments in that regard. One is a significant win for Masimo…and the other a significant win for Apple.
However, the war between these combatants continues…
