The tech sector has become outsized during the current bull run, with an aggregate market cap that amounts to more than three other sectors combined as the megacaps rally. One consequence of this move is a differentiation process whereby investors are starting to parse the sub-industries into separate booms.
One of the more interesting sub-sector themes right now is the audio technology space, as we become more fixated on perfecting how everything in our lives sounds. Within that space, investors may find huge gains in the months and years ahead by taking a close look at the companies with the leading-edge audio technology to dominate the trend.
Here are four of the more interesting names in the space: Sonos Inc (NASDAQ:SONO), Dolby Laboratories, Inc. (NYSE:DLB), Hear AtLast Holdings, Inc. (OTCMKTS:HRAL), and Logitech International SA (NASDAQ:LOGI).
Sonos Inc (NASDAQ:SONO) trumpets itself as a company that, through its subsidiaries, designs, develops, manufactures, and sells multi-room audio products primarily for use in private residences in the United States and internationally. It offers wireless speakers, home theater speakers, and components.
The company offers its products through third-party retail stores and e-commerce retailers, as well as through its sonos.com Website.
Sonos has a sales multiple is higher than that of Fitbit (FIT) and GoPro (GPRO) but lower than consumer electronics companies that have posted more consistent growth like Logitech (LOGI) and Garmin (GRMN).
Sonos Inc (NASDAQ:SONO) just announced that, after market close on Wednesday, August 5, 2020, the company will report financial results for the third quarter ended June 27, 2020 in a letter to shareholders.
The company will host a conference call and Q&A to discuss the results on the same day at 5:00 p.m. Eastern Time.
The stock has been acting well over recent days, up something like 3% in that time.
Sonos Inc (NASDAQ:SONO) generated sales of $175.1M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -68.8% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($283.4M against $213.2M).
Dolby Laboratories, Inc. (NYSE:DLB) bills itself as a company that creates audio and imaging technologies that transform entertainment and communications at the cinema, at home, at work, and on mobile devices.
The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for a range of media applications.; AVC, a digital video codec with high bandwidth efficiency used in media devices; Dolby AC-4, an audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for cinema and a range of media devices.
Its audio technologies also include Dolby Digital, a digital audio coding technology that provides multichannel sound to applications; Dolby Digital Plus, a digital audio coding technology that offers audio transmission for a range of media applications and devices; Dolby TrueHD, a digital audio coding technology providing encoding for media application; Dolby Vision, an imaging technology for cinema and media devices; Dolby Voice, an audio conferencing technology; and HEVC, a digital video codec with high bandwidth efficiency to support for media devices.
Dolby Laboratories, Inc. (NYSE:DLB) just announced Dolby.io, an API platform that further broadens the opportunities to create in Dolby for the enterprise and application development space.
Dolby.io will enable businesses, developers, and content creators to enhance every interaction and every piece of content in order to deliver spectacular communications, collaboration, and audiovisual experiences in their apps and services. Since its founding, Dolby has been on a mission to empower creativity and self-expression, which is driven by a belief that people are moved and compelled by immersive experiences.
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 4% in that timeframe.
Dolby Laboratories, Inc. (NYSE:DLB) managed to rope in revenues totaling $351.8M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 4%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($909.3M against $307.3M).
Hear AtLast Holdings, Inc. (OTCMKTS:HRAL) trumpets itself as a company that operates hearing clinics in North America. That said, as discussed above, the company has been rumored to be in the process of some sort of deal coming together that looks effectively like a reverse merger with some entity that seems to carry the name “Crystal Clear Corporation”. But there are many companies bearing that name with a wide variety of different industry categorizations.
The best lead we have for now is a company filing a few weeks ago that notes the following: On May 11, 2018, the Company signed a Binding Letter of Intent (LOI) to purchase the shares of Crystal Clear Corporation (Crystal). Crystal owns the Intellectual Property and assets pertaining to a new type of commercial hearing device.
The LOI requires the parties to negotiate and sign a definitive Purchase Agreement so that in exchange for 20 million restricted shares in the Company, the Company would receive 100% of Crystal shares. The Company is also required to provide $200,000 in working capital. If at the end of 180 days from the signing of the Purchase Agreement, the Company has not provided the agreed upon working capital, the percentage ownership transferred by Crystal to the Company will be reduced at an agreed upon rate.
Hear AtLast Holdings, Inc. (OTCMKTS:HRAL) used to carry the following description: The company offers hearing assessments and hearing instruments. Its products comprise digital hearing aid instruments and assistive-listening devices, as well as accessories, such as hearing aid wax guards, chargers, cleaners, sound tubes, etc. As of March 31, 2010, HearAtLast Holdings, Inc. had 23 hearing aid clinics within the Wal-Mart structure.
The company was formerly known as 226 Music Group, Inc. and changed its name to HearAtLast Holdings, Inc. in 2007. HearAtLast Holdings, Inc. was founded in 2004 and is headquartered in Georgetown, Canada.
Hear AtLast Holdings, Inc. (OTCMKTS:HRAL) has virtually no cash on the books, which must be weighed relative to about $1.4M in total current liabilities. The company is pre-revenue at this point. However, if a deal is in the works with potentially imminent effect, all of this financial data may change drastically.
Logitech International SA (NASDAQ:LOGI) bills itself as a company that designs, manufactures, and markets products that helps people connect to digital and cloud experiences.
The company offers pointing devices, such as wireless mouse and trackball; corded and cordless keyboards, living room keyboards, and keyboard-and-mouse combinations; PC webcams; and keyboards for tablets and smartphones, as well as other accessories for mobile devices. It also provides keyboards, mice, headsets, and simulation products, such as steering wheels and flight sticks for gamers; video conferencing products, and controllers for video conferencing room solutions; portable wireless Bluetooth and Wi-Fi speakers, PC speakers, PC headsets, in-ear headphones, and wireless audio wearables; home entertainment controllers for smart home devices comprising lighting, thermostats and door locks, and home security cameras.
Logitech International SA (NASDAQ:LOGI) just announced that its Logitech G, a brand of Logitech (NASDAQ: LOGI), and Herman Miller (NASDAQ: MLHR) took a first step into the world of seating ergonomics for gamers, streamers, and esports athletes today when they unveiled a series of high performance gaming furniture and accessories, including the Embody Gaming Chair, the industry’s first truly ergonomic chair.
Together, the two companies spent nearly two years studying esport pros and players around the globe to understand their needs. “Prior to the in-depth research we did, we knew many gamers loved our current offering as we are constantly rated highly in almost every gamer product review,” said Tim Straker, Chief Marketing Officer for Herman Miller. “The main feedback we received was they wanted more variety.”
If you’re long this stock, then you’re liking how the stock has responded to the announcement. LOGI shares have been moving higher over the past week overall, pushing about 3% to the upside on above average trading volume. Logitech International SA (NASDAQ:LOGI) managed to rope in revenues totaling $686.8M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 10.3%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($692.3M against $691M).