Meridian Unplugged - Powered by MrTechGuy.co.uk Forums Discussion Meridian - Systems Are we doing ourselves 'no favours' re: S/H M Equipment ?

Hikers

ARE WE DOING Meridian ANY FAVOURS (forget us for a moment)?

I agree that we should all be more supportive of our favourite company. They are a very small company (given their market) which rely on a faithful following of demanding punters buying their SUPERB equipment.

I do not intend to shock or create havoc with the following so please take it in the constructuve manner intended.

To give you all a snapshot of their business in the year to 31 May 2005 (the latest accounts available):

- Sales were �9.1 million (compare that to Sony or Apple!)

- The US accounts for 45% of sales (thankyou to our North American friends) and the UK was only 16% of sales (UK sales fell by 20% from the previous year)

- Nearly all the growth in sales came from the US and the RoW (outside EU and Asia)

- They spent a tiny �1.2m on research and development (tiny compared to their competitors but huge for them)

- They lost �1m in 2004 and lost �1m again in 2005. This is not a profitable business.

- They sold the MLP royalty stream to Dolby to pay for their new factory

- They had �2.1m of cash but �3.6m of debt

SUMMARY: In 2005 this was a small business in debt losing money. I sincerely hope 2006/7 tells a different story. LETS HAVE SOME CONSTRUCTIVE IDEAS ABOUT HOW Meridian CAN MAKE SOME SERIOUS MONEY.

STRATEGY

Where should they focus to get sales up whilst not spending a fortune?

- Is it selling upgrade cards for existing users (a limited market of lower value unit sales)?

- Is it going even higher end and selling fewer more expensive units (the 900 series)?

- Is it going down market and creating a cheap all in one media solution (HD based) with Meridian engine under the bonnet built in Taiwan (high volume low priced units)?

- Is it carry on doing what they are today? (Remember 2004 and 2005 were lossmaking)

I think the boys going to the Factory in February ought think hard about making some REALLY good suggestions for the business.

Andrew