Masimo Sound United Update
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These graphs are only showing revenue and gross margin numbers. Bottom-line, net income is not shown in these, which is likely where the losses would be evident. Overall EPS is positive, though, but that must be as a result of their healthcare operations, and so the non-healthcare net income must be showing a loss.I don’t know where they are getting these “loss” numbers from, though.
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I'm not an accountant and there might be some reason why this is wrong but it seems like non healthcare Revenue declined by 5.85% but Profit Margin increased by 6.13%. But how long can they continue to increase profit margin, by laying people off or cutting other types of waste or inefficiencies?George / NJ
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Gardenstater wrote: »I'm not an accountant and there might be some reason why this is wrong but it seems like non healthcare Revenue declined by 5.85% but Profit Margin increased by 6.13%. But how long can they continue to increase profit margin, by laying people off or cutting other types of waste or inefficiencies?
They only have to do it long enough to be attractive to a buyer. Then they get bought and pillaged or, if their numbers were close enough, the buyer takes them private, spins off part of the business, usually a slow performer and tacks a bunch of the debt on to it and unloads it all at once. Then they focus on fixing what's wrong with the rest of the company, usually by buying some golden parachutes for top executives and then putting their own in place to make the changes they want.
Then they will either sell it off at a massive profit or they will send it public and leverage their stock options in the IPO and walk away with a mint while killing the operating capital with their stock sell off.
I've worked at 3 companies that were in similar positions as Masimo due to mismanagement at the top and that is exactly what happened each time.Expert Moron Extraordinaire
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There is no breakdown of net income in the available documents, including the Quarterly Report, and the 10-Q SEC filing.
However, YTD revenue for non-Healthcare was reported as $467M. YTD Gross margin was reported as $154M.
Based just on those numbers, they would have to incur non-Healthcare costs of $185M to arrive at the net loss reported in the article of $31M.
Costs of litigation against Apple?
If that were the case, why would Masimo reveal that during a conference when they are trying to sell the operation, which involves more than just Sound United? It also includes the smart watches and the baby monitors.Alea jacta est! -
To make things easier for those who don’t want to click links, here is the content of the article:Former Sound United Business Could Be “Discontinued” Next Year After Falling Revenues, No Buyer and Losses Claims New Director
Masimo executives are back calling their consumer audio business Sound United, with a senior executive on a conference call this week claiming that they will move the business into being a “discontinued operations” if and when the board decides “to no longer pursue a spin-off, of the this business into a publicly traded company” they claimed.
What “discontinued operation” actually meant was not rationalised or explained for their struggling consumer business that in the three months ending September 28, 2024, recorded a revenue decline to US$161.4 million vs $171.5 million in the same period in 2023.
The business that sells Bowers and Wilkins, Denon and Marantz sound systems with the full Denon range set to be sold at JB Hi Fi next year, reporting a net loss of $12.9 million during the quarter ending in September 2024.
In the same period in 2023 the Company reported a loss of $17.8 million.
Marantz Grand Horizon speaker (champagne).
For the nine months ended September 28, 2024, the Company recorded revenue of $465.6 million a fall from the $562.1 million in the prior year.
The net loss in the period was $31.3 million.
At a briefing to analysts this week Micah Young, Executive Vice President & Chief Financial Officer at Masimo said when asked about the future of the former Sound United business “We will continue to update the market on the work of the management team, in partnership with the board’s Business Review Committee”?
“We expect to provide the next update in January 2025. With regard to our strategic review process, the board has not made a final determination of the manner in which the consumer business will be separated. If, among other things, the board anticipate treating the consumer business as a discontinued operation. Upon those decisions being finalised, further, we would exclude the results for our non-GAAP earnings, and no longer provide guidance for this segment if it still remains with the company into the first quarter of 2025.”
ChannelNews understands that Masimo executives have spoken to several potential buyers but at this stage and due in part to falling revenues and losses have failed to find a buyer for the business.
Masimo, a hospital technology company bursts into the Hi-Fi market after buying Sound United’s brand portfolio for A$1.532B.
Denon Model 10 amplifier.
The move shocked the market with analysts claiming the acquisition was an “emotional buy” by the founder of Masimo Joe Kiani who has since been dumped as the CEO of the US Company.
Surprise was an understatement as Masimo was known more for non-invasive medical monitoring.
Kiani made compelling statements at the time about his company’s foray into consumer markets needing established distribution channels and supply chains for his consumer health tracking watches.
Masimo’s board who eventually turned on him remained unconvinced.
Investors on a conference call heard this week that the ‘The company is currently evaluating the structure of any potential separation of its consumer business and the method, structure, timing, and terms of any such potential separation are still under consideration and have not been determined, approved, or finalised.”Alea jacta est! -
At least nobody seems to have floated the new name as Soundbars United.
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That wouldn't connect for most people...
Tom~ In search of accurate reproduction of music. Real sound is my reference and while perfection may not be attainable? If I chase it, I might just catch excellence. ~ -
But Ken will give them Kim Jasper email- Not Tom ::::::: Any system can play Diana Krall. Only the best can play Limp Bizkit.
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I just hope that they're giving it their best 4 shotSal Palooza
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At least nobody seems to have floated the new name as Soundbars United.That wouldn't connect for most people...
Tom
Youse guyses should be in Las Vegas!
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I did my small part to help the sinking ship and ordered a new Denon sacd player this morning.
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motorstereo wrote: »I did my small part to help the sinking ship and ordered a new Denon sacd player this morning.
Takin' one for the team! There you go!
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mhardy6647 wrote: »motorstereo wrote: »I did my small part to help the sinking ship and ordered a new Denon sacd player this morning.
Takin' one for the team! There you go!
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It was tough to justify something that won't get used much and impossible to justify a Marantz 30N at over twice the price of the Denon.
