Sono’s revenues fell over 10% with the US Audio Company reporting Q1 fiscal 2025 revenues of US$551 million this was down from the $612M they reported in the same December ending period in 2023.
Profits also fell from $330M to $241M as of December 2024.
The good news is that Asia Pacific revenues climbed from $28.6M to $28.62M during the period. The company’s cash position also improved with cash and cash equivalents increasing to $280 million from $169.7 million at the end of Q.
The business delivered gross margins of 43.8%.
The result saw the Companies share value climb 7.9% after they announced yesterday that they have sacked 12% of their workforce with up to 200 people let go.
The significant reorganization, is expected to result in charges of $$15-18 million, primarily related to severance and benefits costs, to be incurred in Q2 fiscal 2025.
Revenue breakdown shows Sono’s speakers generated $467.1 million, system products $60.3 million, and partner products $23.4 million. Geographically, Americas contributed $324.6 million, EMEA $197.6 million, and Asia Pacific $28.7 million.
Analysts are tipping that the sacking of former CEO Patrick Spence and his ‘woke’ management team there is every possibility the Company can be turned around despite the brand being damaged by recent decisions taken at the Company.
Observers also claim that the slashing of overheads and the introduction of improved operational efficiency coupled with inventory levels decreasing significantly, from $231.5 million to $140.9 million coupled with the introduction of improved supply chain management and the fact that the Company has cash reserves is a good sign for the business.
The estimated $15-18 million in restructuring charges should be offset by longer-term cost savings claim analysts.
“Yesterday we implemented important organizational changes that mark the start of a new chapter of efficiency and growth for Sonos,” said Tom Conrad, Sonos Interim CEO.
“I see tremendous opportunity in front of us. The team and I are hard at work improving the core experience for our customers while designing the next set of Sonos products and innovations. It’s an honor to show up every day to do this work with the talented Sonos team.”
“Our Q1 results show our team’s commitment to execution as we navigate a difficult environment,” commented Saori Casey, Sonos Chief Financial Officer. “We continue to make great progress in our transformation journey that will set us up well for the future.”
The new management team at Sonos are punting on streamlining the business however the Companies new interim CEO Tom Conrad admits that some tasks are becoming “a struggle”.
“Being smaller and more focused will require us to do a much better job of prioritizing our work — lately we’ve let too many projects run under a cloud of half-commitment. We’re going to fix this too,” he said in the statement, before moving on to some transition details for those being let go.
