Masimo Sound United Update

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  • jdjohn
    jdjohn Posts: 3,155
    Kex wrote: »
    I don’t know where they are getting these “loss” numbers from, though.

    7obhmu7xlu5c.png
    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.
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  • Gardenstater
    Gardenstater Posts: 4,497
    edited November 13
    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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  • Jstas
    Jstas Posts: 14,836
    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.
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  • Kex
    Kex Posts: 5,196
    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!
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  • Kex
    Kex Posts: 5,196
    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.

    mgtnlu4pfwq2.png
    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.
    17qwprz89pcg.png
    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!
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  • Emlyn
    Emlyn Posts: 4,523
    At least nobody seems to have floated the new name as Soundbars United.
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  • treitz3
    treitz3 Posts: 19,114
    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. ~
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  • VR3
    VR3 Posts: 28,729
    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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  • mrbigbluelight
    mrbigbluelight Posts: 9,782
    I just hope that they're giving it their best 4 shot
    Sal Palooza
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  • mhardy6647
    mhardy6647 Posts: 33,885
    Emlyn wrote: »
    At least nobody seems to have floated the new name as Soundbars United.
    treitz3 wrote: »
    That wouldn't connect for most people...

    Tom

    Youse guyses should be in Las Vegas! :DB)
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  • mhardy6647
    mhardy6647 Posts: 33,885
    VR3 wrote: »
    But Ken will give them Kim Jasper email

    You can be their warm-up act. ;)
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  • motorstereo
    motorstereo Posts: 2,140
    I did my small part to help the sinking ship and ordered a new Denon sacd player this morning.
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  • mhardy6647
    mhardy6647 Posts: 33,885
    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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  • nooshinjohn
    nooshinjohn Posts: 25,443
    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!
    ;)

    Wacka Wacka….
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    “When once a Republic is corrupted, there is no possibility of remedying any of the growing evils but by removing the corruption and restoring its lost principles; every other correction is either useless or a new evil.”— Thomas Jefferson
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  • motorstereo
    motorstereo Posts: 2,140
    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.
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  • Viking64
    Viking64 Posts: 7,104
    motorstereo wrote: »
    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.

    Judging from the photo in that article, if you order a Denon SACD player, you may just receive a Marantz SACD player.
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  • nooshinjohn
    nooshinjohn Posts: 25,443
    Looks to be a good fit for Sound United, but I don't think they are a big enough fish to be able to pick the entire portfolio.

    https://lenbrook.com/
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    “When once a Republic is corrupted, there is no possibility of remedying any of the growing evils but by removing the corruption and restoring its lost principles; every other correction is either useless or a new evil.”— Thomas Jefferson
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  • IndustryPro2000
    IndustryPro2000 Posts: 2
    This thread has some great perspectives, and I wanted to add another angle for discussion.

    With Bose recently acquiring McIntosh Group, which includes McIntosh and Sonus faber, it seems like a strategic move to bolster their presence in the premium audio market. Given this, could Bose also be eyeing Masimo's consumer division (formerly Sound United)?

    A purchase like this would position Bose as a major player in both the lifestyle and premium segments, bringing brands like Denon, Marantz, and Bowers & Wilkins into their portfolio. It could help them compete more directly with companies like Harman, especially as the market shifts toward integrated ecosystems and high-end solutions.

    What do you think? Would Bose find value in such an acquisition, or is it too much of a stretch given Masimo's current challenges?

    Looking forward to hearing your thoughts!
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  • pitdogg2
    pitdogg2 Posts: 25,547
    Two words
    Intellectual properties....
    Stranger things have happened.
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  • F1nut
    F1nut Posts: 50,643
    It's like déjà vu all over again
    Political Correctness'.........defined

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  • pitdogg2
    pitdogg2 Posts: 25,547
    Bose 901 SDA's man! Who's buying a pair, raise your hand 👋🏽 @F1nut I know you'll be first in line....
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  • invalid
    invalid Posts: 1,371
    F1nut wrote: »
    It's like déjà vu all over again

    I'll bet Money, if there were 3 threads on this topic there would be another identical post.
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  • mhardy6647
    mhardy6647 Posts: 33,885
    And -- in today's not entirely unrelated business news:
    https://www.prnewswire.com/news-releases/voxx-international-to-be-acquired-by-gentex-corporation-in-all-cash-transaction-for-7-50-per-common-share-302334354.html

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  • Jstas
    Jstas Posts: 14,836
    That's pretty important as VOXX, previously known as Audiovox is the owner of:
    - Pioneer
    - Klipsch
    - Onkyo
    - Integra
    - Magnat
    - Mac Audio
    - HECO
    - Energy
    - Schwaiger
    - Oehlbach
    - RCA
    - Terk
    - Jensen
    - AR
    - Audiovox
    - Advent
    - Invision
    - Rosen
    - Omega
    - Excalibur
    - K09 Alarm
    - Pursuit
    - Prestige
    - Clifford
    - Code Alarm
    - Directed
    - Viper
    - CrimeStopper
    - Rostra
    - Python
    - ...

    Yeah, there's a lot.

    It's interesting, though, that VOXX owns the Pioneer consumer segment (home audio) but the Pioneer automotive, television and video business is privately owned in Japan.
    Expert Moron Extraordinaire

    You're just jealous 'cause the voices don't talk to you!
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  • nooshinjohn
    nooshinjohn Posts: 25,443
    Voxx also just announced the return of the Onkyo brand. Hopefully Frank Malitz is nowhere near it this time…
    The Gear... Carver "Statement" Mono-blocks, Mcintosh C2300 Arcam AVR20, Oppo UDP-203 4K Blu-ray player, Sony XBR70x850B 4k, Polk Audio Legend L800 with height modules, L400 Center Channel Polk audio AB800 "in-wall" surrounds. Marantz MM7025 stereo amp. Simaudio Moon 680d DSD

    “When once a Republic is corrupted, there is no possibility of remedying any of the growing evils but by removing the corruption and restoring its lost principles; every other correction is either useless or a new evil.”— Thomas Jefferson
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  • pitdogg2
    pitdogg2 Posts: 25,547
    nooshinjohn wrote: »
    Voxx also just announced the return of the Onkyo brand. Hopefully Frank Malitz is nowhere near it this time…

    Did it disappear?
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  • smglbrth
    smglbrth Posts: 1,473
    pitdogg2 wrote: »
    nooshinjohn wrote: »
    Voxx also just announced the return of the Onkyo brand. Hopefully Frank Malitz is nowhere near it this time…

    Did it disappear?

    Compared to what Onkyo used to be it's a former shell of itself, IMHO. The last time they made any effort at decent 2 channel equipment was, what, around 15 years ago? I'm not a HT person...
    Remember, when you're running from something, you're running to something...-me
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  • mhardy6647
    mhardy6647 Posts: 33,885
    Onkyo's supposedly relaunched its website, reflecting their new status. As of yesterday, it was reportedly pretty much nonfunctional, though.
    Let's look at it today...
    2hkditprwp5m.png
    Looks promising.

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  • mhardy6647
    mhardy6647 Posts: 33,885
    https://onkyo.com/hi-fi
    7vi7kcyvlyuu.png

    Is that an AI Klipsch Heresy IV?
    The tape deck's an AKAI GX-630D, I think (and FWIW).
    c54pih2a8nw9.jpg
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  • pitdogg2
    pitdogg2 Posts: 25,547
    smglbrth wrote: »
    pitdogg2 wrote: »
    nooshinjohn wrote: »
    Voxx also just announced the return of the Onkyo brand. Hopefully Frank Malitz is nowhere near it this time…

    Did it disappear?

    Compared to what Onkyo used to be it's a former shell of itself, IMHO. The last time they made any effort at decent 2 channel equipment was, what, around 15 years ago? I'm not a HT person...

    You can say that about many of the legacy companies, to be truthful.
    Yamaha seems to be the only one still trying to make decent gear.
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