Tag Archives: Finance

Sonos is delaying two product launches until it fixes its buggy app

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Last quarter should've been a triumphant one for Sonos with the launch of its first headphones, but the company is facing the realities of its botched app redesign. CEO Patrick Spence explained in the company's Q3 earnings press release that Sonos has reduced its 2024 fiscal guidance as a result of "problems" both customers and partners encountered with the software update. But, the issues don't stop with revenue. The company also said on its earnings call it will delay two new product launches planned for Q4 until the app is fixed.  

“Thanks to Ace, our long-awaited entry into headphones, we reported year over year revenue growth and delivered results that slightly exceeded our expectations in our third quarter,” Spence said. “This was overshadowed by the problems that our customers and partners experienced as a result of the rollout of our new app, which in turn has required us to reduce our Fiscal 2024 guidance. We have a clear action plan to address the issues caused by our app as quickly as possible."

Spence said the new products were ready to ship in Q4, but that right now "our number one priority is to make this right and ensure that the next chapter is even better than the previous ones." Of course, the company hasn't officially discussed exactly what those two products are just yet. Bloomberg reported late last year that Sonos was working on a set-top TV streaming box and a successor to its premium Arc soundbar. The CEO also admitted during the call that the total cost of fixing the issues with the app will cost the company $20-$30 million. However, Spence is confident Sonos will bounce back, describing this as only one "chapter" in the company's history.

This article originally appeared on Engadget at https://www.engadget.com/audio/speakers/sonos-is-delaying-two-product-launches-until-it-fixes-its-buggy-app-213743460.html?src=rss

Nintendo profits fall 55 percent as people save their cash for the Switch 2

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People are so excited for the next-gen Switch, they're likely holding off on buying Nintendo's current consoles and games. At least that's what the company's latest earnings report seems to indicate. For the quarter ending on June 30, Nintendo posted a net profit of 80.9 billion Japanese Yen, which is higher than its forecast but over 50 percent lower than its net profit for the same period last fiscal year. In addition, the company said it only sold 2.1 million Switch consoles for the quarter. That means it experienced a 46.3 percent decline on unit sales year-on-year. Even its games didn't sell well, seeing as Nintendo posted a software sales figure that's 41.3 percent lower than last fiscal year's at 30.64 million units sold. 

In its report, Nintendo admits that the low sales figures for games was caused by the lack of big releases, such as the previous year's The Legend of Zelda: Tears of the Kingdom. The Super Mario Bros. Movie also helped "energize" its business back then. But since hardware sales for this quarter are similar to the previous one's, Nintendo considers its Switch sales to be stable. 

Nintendo is expected to launch its "Switch 2" console soon. It was expected to come out sometime this year, but according to reports published in the previous months, it will be released in early 2025 instead. There's still very little known about the upcoming console, but rumors say it will have backwards compatibility, as well as 4K capabilities. 

This article originally appeared on Engadget at https://www.engadget.com/nintendo-profits-fall-55-percent-as-people-save-their-cash-for-the-switch-2-140019403.html?src=rss

Intel will cut over 15,000 jobs in a sweeping cost-cutting effort

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In a crushing quarterly update, Intel disclosed that it will cut more than 15 percent of its workforce. The layoffs, which could impact over 15,000 jobs, are part of the company's $10 billion cost-reduction plan to recover financial stability. Intel posted a second-quarter net loss of $1.6 billion, plunging from the net income of $1.5 billion it reported in the same period of 2023.

CEO Pat Gelsinger addressed employees with a memo acknowledging the scope of today's announcements. "This is painful news for me to share," he said. "I know it will be even more difficult for you to read. This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history."

As well as the job cuts, the cost-reduction plan includes creating separate financial reporting for Intel Products and Intel Foundry. The Intel Foundry branch saw an operating loss of $2.8 billion in Q2, even more than the $1.8 billion operating loss it saw during the second quarter last year. Intel has been in the process of overhauling its foundries to make them more competitive. In the interim, it has had to rely on other companies for some production. TSMC, the same manufacturer used by Apple, Qualcomm and AMD, is producing its new Lunar Lake chips.

The company took an additional hit in the public eye when its 13th- and 14th-generation desktop CPUs began experiencing instability issues. While a fix is expected this month to prevent any further problems, any damage that the microcode errors caused to CPUs appears to be permanent.

This article originally appeared on Engadget at https://www.engadget.com/intel-will-cut-over-15000-jobs-in-a-sweeping-cost-cutting-effort-220951016.html?src=rss

Intel will cut over 15,000 jobs in a sweeping cost-cutting effort

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In a crushing quarterly update, Intel disclosed that it will cut more than 15 percent of its workforce. The layoffs, which could impact over 15,000 jobs, are part of the company's $10 billion cost-reduction plan to recover financial stability. Intel posted a second-quarter net loss of $1.6 billion, plunging from the net income of $1.5 billion it reported in the same period of 2023.

CEO Pat Gelsinger addressed employees with a memo acknowledging the scope of today's announcements. "This is painful news for me to share," he said. "I know it will be even more difficult for you to read. This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history."

As well as the job cuts, the cost-reduction plan includes creating separate financial reporting for Intel Products and Intel Foundry. The Intel Foundry branch saw an operating loss of $2.8 billion in Q2, even more than the $1.8 billion operating loss it saw during the second quarter last year. Intel has been in the process of overhauling its foundries to make them more competitive. In the interim, it has had to rely on other companies for some production. TSMC, the same manufacturer used by Apple, Qualcomm and AMD, is producing its new Lunar Lake chips.

The company took an additional hit in the public eye when its 13th- and 14th-generation desktop CPUs began experiencing instability issues. While a fix is expected this month to prevent any further problems, any damage that the microcode errors caused to CPUs appears to be permanent.

This article originally appeared on Engadget at https://www.engadget.com/intel-will-cut-over-15000-jobs-in-a-sweeping-cost-cutting-effort-220951016.html?src=rss

Say goodbye to Redbox

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It's the end of the line for Redbox and its DVD rental kiosks. The movie rental service's parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy in late June. But it apparently shifted its filing from Chapter 11 to Chapter 7, which means it intends to liquidate its business altogether instead of putting the company through a reorganization. According to Deadline, the company was initially looking to raise funds by selling some assets and keeping around 100 employees. However, in the end, it decided that the best course of action was to let all 1,000 Redbox employees go and to shut down all 24,000 Redbox kiosks. 

"There is no means to continue to pay employees, pay any bills, otherwise finance this case," US bankruptcy judge Thomas Horan said, according to Lowpass. Horan also said that there's "at least the possibility of misappropriation of funds that were held in trust for employees." Redbox couldn't pay its people for nearly a month, and its parent company had to secure a loan of $8 million for their salaries and to be able to restore their medical benefits that haven't been active since mid-May. 

Redbox kiosks, which are typically located in groceries and convenience stores, used to rent out movie DVDs and Blu-ray discs, as well as video games. In 2019, however, it stopped renting out video games to focus on movie rentals and its on-demand streaming service. The company is long past its prime, and its rental service is nowhere near as appealing these days with all the streaming services out there. In fact, the bankruptcy proceedings have revealed that Redbox's payroll obligations were higher than it earnings. Still, the kiosks continued to serve people with no access to a strong and steady internet connection, who'll now have to say goodbye to being able to rent a DVD or two whenever they step out to run errands. 

This article originally appeared on Engadget at https://www.engadget.com/say-goodbye-to-redbox-130044411.html?src=rss

Microsoft and Apple give up their OpenAI board seats

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Microsoft has withdrawn from OpenAI's board of directors a couple of weeks after the European Commission revealed that it's taking another look at the terms of their partnership, according to the Financial Times. The company has reportedly sent OpenAI a letter, announcing that it was giving up its seat "effective immediately." Microsoft took on an observer, non-voting role within OpenAI's board following an internal upheaval that led to the firing (and eventual reinstatement) of the latter's CEO, Sam Altman. 

According to previous reports, Apple was also supposed to get an observer seat at the board following its announcement that it will integrate ChatGPT into its devices. The Times says that will no longer be the case. Instead, OpenAI will take on a new approach and hold regular meetings with key partners, including the two Big Tech companies. In the letter, Microsoft reportedly told OpenAI that it's confident in the direction the company is taking, so its seat on the board is no longer necessary. 

The company also wrote that its seat "provided insights into the board's activities without compromising its independence," but the European Commission wants to take a closer look at their relationship before deciding if it agrees. "We’re grateful to Microsoft for voicing confidence in the board and the direction of the company, and we look forward to continuing our successful partnership," an OpenAI spokesperson told The Times.

Microsoft initially invested $1 billion into OpenAI in 2019. Since then, the company has poured more money into the AI company until it has reached $13 billion in investments. The European Commission started investigating their partnership to figure out if it breaks the bloc's merger rules last year, but it ultimately concluded that Microsoft didn't gain control of OpenAI. It didn't drop the probe altogether, however — Margrethe Vestager, the commission's executive vice-president for competition policy, revealed in June that European authorities asked Microsoft for additional information regarding their agreement "to understand whether certain exclusivity clauses could have a negative effect on competitors."

The commission is looking into the Microsoft-OpenAI agreement as part of a bigger antitrust investigation. It also sent information requests to other big players in the industry that are also working on artificial intelligence technologies, including Meta, Google and TikTok. The commission intends to ensure fairness in consumer choices and to examine acqui-hires to "make sure these practices don’t slip through [its] merger control rules if they basically lead to a concentration."

This article originally appeared on Engadget at https://www.engadget.com/microsoft-and-apple-give-up-their-openai-board-seats-120022867.html?src=rss

Tesla’s year-over-year deliveries decreased for the second quarter in a row

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Tesla has announced its second quarter figures, with the company producing 410,831 and delivering 443,956 EVs in Q2. Production decreased by a little over 20,000 units compared to quarter one, but deliveries increased by nearly 15 percent. However, its distribution numbers are 4.8 percent lower than the same period in 2023. Tesla notes it "deployed 9.4 GWh of energy storage products in Q2, the highest quarterly deployment yet."

The car manufacturer's first quarter of 2024 was the first time since 2020 that the company reported a year-over-year sales drop. The car manufacturer blamed the decrease partly on "the early phase of the production ramp of the updated Model 3 at our Fremont factory and factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin." A group of people called "Volcano Group" claimed responsibility for cutting the power to Tesla's factory outside Berlin. The plant is Tesla's only one in Europe and had to close for a week while power was restored.

Notably, on April 1 Tesla increased the price of every Model Y in the US by $1,000, but we'll have to wait until July 23 to see if it impacted the company's Q2 financial results. Earlier this year, Tesla CEO Elon Musk announced that a lower-cost EV should arrive in the second half of 2025, but that its production might lower sales growth this year. 

This article originally appeared on Engadget at https://www.engadget.com/teslas-year-over-year-deliveries-decreased-for-the-second-quarter-in-a-row-144057024.html?src=rss

Tesla’s year-over-year deliveries decreased for the second quarter in a row

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Tesla has announced its second quarter figures, with the company producing 410,831 and delivering 443,956 EVs in Q2. Production decreased by a little over 20,000 units compared to quarter one, but deliveries increased by nearly 15 percent. However, its distribution numbers are 4.8 percent lower than the same period in 2023. Tesla notes it "deployed 9.4 GWh of energy storage products in Q2, the highest quarterly deployment yet."

The car manufacturer's first quarter of 2024 was the first time since 2020 that the company reported a year-over-year sales drop. The car manufacturer blamed the decrease partly on "the early phase of the production ramp of the updated Model 3 at our Fremont factory and factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin." A group of people called "Volcano Group" claimed responsibility for cutting the power to Tesla's factory outside Berlin. The plant is Tesla's only one in Europe and had to close for a week while power was restored.

Notably, on April 1 Tesla increased the price of every Model Y in the US by $1,000, but we'll have to wait until July 23 to see if it impacted the company's Q2 financial results. Earlier this year, Tesla CEO Elon Musk announced that a lower-cost EV should arrive in the second half of 2025, but that its production might lower sales growth this year. 

This article originally appeared on Engadget at https://www.engadget.com/teslas-year-over-year-deliveries-decreased-for-the-second-quarter-in-a-row-144057024.html?src=rss

The owner of Redbox has filed for Chapter 11 bankruptcy

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Chicken Soup for the Soul Entertainment, which acquired the movie rental service Redbox in 2022, has filed for Chapter 11 bankruptcy protection, Deadline reports. The company recently disclosed net losses of $636.6 million for 2023 in a SEC filing, and Deadline reported just a few days ago that it had suspended medical benefits and missed payroll, leaving employees without their paychecks for a week already. In a message to employees on Saturday, Chicken Soup for the Soul Entertainment said it had applied for a debtor-in-possession loan in an attempt to remedy the situation.

“Upon court approval, we expect payroll to be funded early in the week and funding for this upcoming week’s payroll to also be secured,” the message said, per Deadline. “We also expect to have the funds to reinstate medical benefits back to May 14, 2024 and going forward.” The $375 million deal to acquire Redbox brought with it a ton of debt, and according to The Verge, Chicken Soup for the Soul Entertainment owes money to a slew of retailers, studios, and streaming platforms — including Walmart, Universal and Sony — as well as other creditors.

Its total debts come to about $970 million. Chicken Soup for the Soul Entertainment also owns the streaming service Crackle and a few other film and TV brands, in addition to selling the long-running self-help books it’s best known for.

This article originally appeared on Engadget at https://www.engadget.com/the-owner-of-redbox-has-filed-for-chapter-11-bankruptcy-172124081.html?src=rss

US Treasury finalizes crypto rules to prevent tax evasion

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While people who own and sell cryptocurrency have always had to pay taxes on their earnings, a new rule finalized by the US Treasury Department can ensure that they're paying the proper amount on their sales. The new rule will require cryptocurrency platforms like exchanges and payment processors to report their users' transactions to the Internal Revenue Service. According to The Wall Street Journal, authorities are hoping that the measure can deter tax evasion, seeing as the IRS would know exactly how much a taxpayer owes. 

At the same time, the rule will make it much easier for people for declare their earnings because their brokers will now have to provide them with a 1099 form. The IRS released a draft form of 1099-DA (Digital Asset Proceeds From Broker Transaction) made especially to track crypto transactions last year and will make the final version available soon. To note, the rule sets a threshold of $10,000 to report on transactions involving stablecoin, which are cryptocurrencies that track fiat money like the US dollar. 

"[I]nvestors in digital assets and the IRS will have better access to the documentation they need to easily file and review tax returns,” Aviva Aron-Dine, the Treasury’s acting assistant secretary for tax policy, said in a statement. “By implementing the law’s reporting requirements, these final regulations will help taxpayers more easily pay taxes owed under current law, while reducing tax evasion by wealthy investors.”

The new rule will only apply to platforms that take possession of digital assets, such as Coinbase or Binance. It doesn't cover decentralized ones, which will have to comply with a separate rule that's expected to be finalized later this year. Brokers will have to start reporting sales proceeds on digital assets in 2026 for all transactions accomplished in 2025, which means crypto traders are still on their own for 2024. 

This article originally appeared on Engadget at https://www.engadget.com/us-treasury-finalizes-crypto-rules-to-prevent-tax-evasion-143051676.html?src=rss