Strategy in TECH...
In a note sent to dealers Friday, Sonos said that “after much deliberation” it has decided that it will no longer be participating in the CEDIA Expo 2021 as originally planned. Yet another in a line of exhibitors leaving the event, the company cited “the recent increases in COVID cases and the prevalence of the Delta variant.”
After the close of market on Wednesday, Sonos, Inc. (NASDAQ: SONO) reported their fiscal 2021, second quarter results which were very strong. On Wall Street they like to call that an “earnings surprise” and they really, really like it when it is a positive surprise. Sonos did not disappoint them.
On Tuesday, Sonos held a major investors event that started off with the introduction of their new Roam portable speaker. But the real purpose of this event was to provide investors information on their financial performance. And stock analysts and the media got quite a show – and a few surprises – as the company revealed their formula for success.
On Wednesday after the close of markets, Sonos announced that it had turned in a record first quarter in their current 2021 fiscal year with revenues up, profits up, long-term debt down and new records set in several performance categories. In fact, actual performance came in so much stronger than the company had originally anticipated, that after just this first quarter of the year they announced they were revising and raising their guidance for their anticipated revenues and profits for the remainder of the fiscal year.
In yet another sign of patent success for Sonos, major industry player Legrand has agreed to a multi-year licensing deal to cover the technology used in their Nuvo line of wireless multi-room products. This is yet another sign that tends to add to the growing power of the Sonos patent portfolio covering these technologies.
A hearing before a California federal judge brought an ugly exchange between attorneys for both Sonos and Google – with each side pointing their finger at the other and accusing them of bad faith. That attorneys got ugly against their counterparts is not in itself surprising. However, the speed with which this dispute devolved to that point was a surprise.
Sonos, Inc. [NASDAQ: SONO] released their fourth quarter and full year financial results for fiscal 2020. Their performance pleasantly surprised Wall Street and their stock value exploded well over 20% in Thursday trading as the company exceeded analysts’ estimates for both revenue growth and profits. But is everything as it appears here?
Bloomberg News reported late on Monday that Apple is dropping Sonos [NASDAQ: SONO] and other non-Apple branded products from their stores. The news of Sonos losing such a major customer caused their stock to derail in after hours trading, down almost 7% in value at one point. On Tuesday, Sonos stock price closed down 3.2% as Wall Street digested the news.
It must be really interesting in those Sonos and Google joint product development meetings, where the parties meet to discuss their partnership on the Google assistant technology built into Sonos products. You see, in addition to this product partnership, both companies are ensnarled in a nasty round of lawsuits accusing each other of various patent violations – with tactics and rhetoric heating up as each fired new salvos at the other just this week. On Monday, Google sued Sonos. On Tuesday, Sonos sued Google. This is getting serious…
Sonos, Inc. (NASDAQ: SONO) announced this week that they are adding a new member to their Board of Directors. In fact, they even increased the size of the Board to make room for this new addition. The news surprised – and impressed – many market observers, as the person they are adding is Panos Panay, a top Microsoft Corp. executive. You see, if you are not familiar with Panay, there is something special about his background that makes him an intriguing addition to the Sonos Board.
