November 6
' LOUD Technologies Inc. issued a press release announcing that its Board of Directors has received a proposal from Sun Mackie, LLC, which is the company’s majority shareholder, to acquire all of the outstanding shares of common stock of the company not held by Sun Mackie for a price of $1.45 in cash per share. '
December 17
' Loud Technologies Inc. said its key Chinese supplier, which makes about a third of the company’s audio and musical products, has stopped making its products.
Officials at the Woodinville music company (NASDAQ: LTEC) said the Chinese supplier, which is experiencing financial difficulties, has been making Loud products for eight years, and products it made represented 35 percent of Loud’s net sales in 2007 and 32 percent for the first six months of 2008.
Without those sales, Loud said it expects a “significant decline” in net sales in 2009, especially in the first and second quarters. Loud said it will try and obtain custom tooling used by the Chinese supplier to try and transfer the tooling to another manufacturer within the next four months. If it can’t obtain the tooling, it will take up to another four months to obtain new tooling and being manufacturing again. '
December 26
' Loud still maintains a contract with the manufacturer in question, but the statement makes mention of Loud's potentially seeking a contract with a different manufacturer, as well as a four- to eight-month foreseeable delay in the resumption of production.
Loud anticipates a rough 2009, stating that these manufacturing challenges will most likely mean "[Loud Tech] may be unable to comply with the terms and conditions of its senior credit facility... may not have sufficient cash... to meet its cash requirements... may encounter difficulties in managing new contract manufacturer relationships" and -- most sobering -- that "potential customers may decide to purchase competing products rather than wait until [Loud Tech]’s products are available again, which may lead to permanent loss of market share."
Is there an upside to this? Scarcity in the aftermarket might be good news for resellers, but things are looking pretty dim for Loud in 2009. '
January 12
' LOUD Technologies Inc. (NasdaqCM: LTEC) today announced 2 new contract manufacturing (“CM”
partners and the reallocation of production for certain EAW and Mackie products across its worldwide supply chain to replace capacity lost when the prior CM for those products discontinued operations in December, 2008.
Meanwhile, supplies of all other EAW and Mackie products, as well as Alvarez, Ampeg, Crate and Martin branded products continue uninterrupted, as they are manufactured at other LOUD CM partners.
“We were already moving to secure alternate EAW and Mackie production sources in response to growing backlogs with this prior supplier, and these efforts remain LOUD’s top priority. We just signed manufacturing agreements with 2 new contract manufacturers and added additional capacity at a LOUD-owned U.S. facility,” commented Jim Stewart, LOUD chief operating officer. “We already have new lines up and running for EAW KF and SB loudspeakers, as well as Mackie MR and HRmk2 studio monitors, and plan to bring up additional lines for other products every few weeks until supplies are stabilized.” '
January 15
' LOUD Technologies Inc. (NASDAQCM:LTEC) today announced that it has submitted written notice to the NASDAQ Stock Market LLC of its intention to voluntarily delist its common stock from NASDAQ. '
One of the articles, I forget which, mentions that Loud/Mackie was aware of a halt in production as early as August, but thought it was only temporary. The December announcement was just that it turned out to have been a permanent halt, so they've been without new product from that factory for well over a full quarter.
