Sonos Raises Full-Year Revenue Guidance, Confident in Suit Against Google
Despite an order backlog situation caused by industry-wide component shortages that it expects to stretch into FY 2022, Sonos raised full-year revenue guidance for FY 2021 in its Wednesday fiscal Q3 earnings report. Guidance is now $1.69 billion-$1.71 billion, for…
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28%-29% year-on-year growth, vs. previous guidance of $1.62 billion-$1.67 billion. Revenue for the quarter ended July 3 rose 52% to $378.7 million. The company plans price increases before the next fiscal year, which begins in October, based on higher costs due to higher component prices and the supply and demand imbalance, said Chief Financial Officer Brittany Bagley on a Wednesday earnings call. Chief Legal Officer Eddie Lazarus said the judge’s initial decision is due Friday in Sonos' patent infringement case against Google at the International Trade Commission. Sonos alleges Google products infringe five Sonos patents, “basically the limit of what you can fit” in an ITC case, Lazarus said: Overall, Sonos believes Google infringes more than 150 U.S. utility patents from 30 Sonos patent families. “Google has thrown everything at us in this case,” said Lazarus, but Sonos believes evidence before the ITC "demonstrates Google to be a serial infringer of Sonos' valid patents and that the ITC case represents just the tip of the iceberg.” Sonos remains “confident that the ITC will find Google to be a patent infringer and, as happened recently in Sonos' case against Google in Germany, that other courts will do the same” (see 2105130052). Responding to Lazarus’ comments, Google spokesperson Jose Castaneda emailed Thursday: “Sonos has misrepresented our partnership and mischaracterized our technology. We designed our products and services independently, and we have strong IP rights that we are defending. While we look to resolve our dispute, we will continue to ensure our shared customers have the best experience using our products.” Shares rose 7.4% Thursday to close at $37.38.