Strategy in TECH...
The Control4 Corporation has been hit with another class action lawsuit filed on behalf of all shareholders of their stock in connection with their acquisition by Wirepath Home Systems, LLC – better known as SnapAV. Filed by the law firm of Rigrodsky & Long, P.A., the lawsuit alleges certain violations of Securities Exchange Act of 1934 and names both Control4 and its Board of Directors as defendants.
SnapAV announced this afternoon that they have acquired Custom Plus Distributing, a regional distributor that started in the Pacific Northwest and expanded into California. This is the fourth acquisition by the company who seeks to grow their physical distribution footprint to better serve their customers in local markets.
Credit rating agency Moody’s Investors Service has downgraded the credit rating of Wirepath LLC (corporate name of SnapAV) from B2 to B3 in the wake of their announced acquisition of Control4. The primary reason for the downgrade is due to the fact that SnapAV will be forced to increase their debt by an additional $390 million to a new high of $683 million in order to close on this acquisition.
James Loudspeaker, an innovative manufacturer of architectural speaker products for the residential and commercial custom integration industry, announced this week that they have redesigned their speaker grilles to a new Microperf-style for their small aperture product line. The new Microperf design is sure to be popular with architects, designers, integrators and end-users as it helps to more perfectly visually blend the speakers into the surrounding environment.
In consumer electronics, we tend to find products separated into certain ranges or categories, largely based on the intended target market. There are high-end/high-performance products targeted for audio aficionados (aka audiophiles) that tend to be better performing, but at a higher price. And then there are inexpensive items targeted to the mainstream consumer who likes the looks or features – such as a nostalgia look – but isn’t willing to pay much extra for performance…because that’s not necessarily their “thing.”
But like “East” and “West,” these two things almost never meet together in one product. Never, that is, until product design expert Hiro Ogura launched his Voiz lossless streaming smart speaker.
The last ninety days or so have been somewhat turbulent at Nortek Security and Control (NSC), with two top executives departing under foggy circumstances. First, in May we learned that President Mike O’Neal had left the company. Then, last week, news emerged that Joe Roberts, Executive VP of Products and Marketing had also departed.
I reached out to Joe Roberts to try to find out what was up with all of these changes at NSC.
TiVo Corporation announced this week that it has entered into a global IP (intellectual property) licensing agreement with leading home electronics supplier LG Electronics, Inc. (LG). This deal is consistent with the company’s persistent efforts to deliver a more comprehensive, unique, and easy-to-use feature pack and user experience on their premium TVs.
With most economists on pins and needles over the recent number of economic data points that seem to suggest an impending economic slowdown, word came at the end of the last week that the latest jobs report from U.S. Bureau of Labor Statistics saw employment take a big jump. According to this latest data, employers added a significant 224,000 jobs in June, a big increase from May’s anemic results.
Although the US is in the midst of a record period of economic expansion, more and more troubling signs have appeared over the last few months in the form of negative economic data points to suggest that a turn in the economy may be coming. This week, a trio of new reports – consumer confidence, sales of newly constructed homes, and corporate earnings revisions – suggest that economic growth is stalling and that “turn” may be here.
