Roland's sales and profits?

Started by mapperboy, March 18, 2014, 06:15:01 PM

Previous topic - Next topic

0 Members and 2 Guests are viewing this topic.

mapperboy

Because there's often discussions on these boards as to why Roland doesn't seem to want to listen to its customers, especially serious and pro musicians.
If anyone has the numbers for units sold for the VG series as well as the GR series.
I have a strong suspicion that the sales figures are not very high compared to some of the other Boss/Roland gear and hence management in their strictly bottom line profit driven mind chooses to ignore the flagship products and their successors.
They just don't make enough money on them or ??  The companies I worked for in the past would only tolerate a upper echelon but poor selling line for so long before their 'shareholder' mind clamped down and we dropped the product or even whole product line.
So I guess if that may be true it's back to the question of whether Roland wants to showcase the highest level of bleeding edge guitar processing with flexible open product even if their don't sell millions of units... 
"No such thing as spare time.
No such thing as free time.
No such thing as down time.
All you got is life time. Go!"
- Henry Rollins

Elantric

#1

Elantric


Kevin M

#3
Quote"In the Electronic Musical Instruments Business, the Company estimates that while net sales are mostly in line with the initial forecast, operating income is expected to exceed the initial forecast due to improvement in cost-to-sales ratio associated with improvement in plant operating ratio by launch of new products and the impact of the weaker yen, etc.
In the Computer Peripherals Business, the Company estimates that operating income will be higher than the initial forecast thanks to strong performance in printers as well as weaker yen effects."
Printers??


Sent from my iPad using Tapatalk

Elantric

#4
QuotePrinters??

Correct - Roland DGA Group is a major vendor of CAD  and Vinyl Sign printers

http://www.rolanddga.com/





They also have "Roland Systems Group - with focus on Broadcast Video
http://www.rolandsystemsgroup.com/




And Pro Audio

Resonator

Hello Everyone, I'm a new member here & a longtime lurker. . . First off, I'd like to say THANK YOU to EVERYONE who contributes to this great forum and making so much useful & helpful information available. What a great time to be a guitar player!  Hope to participate & help to accumulate knowledge here as time goes on.
A couple of days ago, I saw the following post over at the "Synthzone/Forum/Arranger Keyboard Forum" and thought that it may be of interest here.  (I had not seen any thing about this topic here at this forum). 
The original post I saw is entitled:  "Roland to be bought out by own management", at: 

http://www.synthzone.com/forum/ubbthreads.php/topics/389047/Roland_to_be_bought_out_by_own#Post389047          and provides the further links:

1.)  "Taiyo Pacific Partners Supports Management Buyout by Roland's Executive Team" @
http://finance.yahoo.com/news/taiyo-pacific-partners-supports-management-120200931.html     

and

(Translated)--"Roland Announcement concerning Implementation of MBO and Recommendation to Tender"
2.)  http://www.roland.com/ir/pdf/2014/20140514.pdf 

I wonder what impact, if any, this may have on the future of Roland guitar & virtual guitar products.  Hopefully, it could or will provide a more responsive/collaborative management to their customers and to the guitar community.  Maybe it can provide a better vehicle for customer input?? --Let's Hope!     
All the best to everyone, --Jim

Brent Flash


Elantric

http://www.roland.com/ir/
2014-05-14
Consolidated Financial Results for the Fiscal Year Ended March 31, 2014 (PDF:215KB)
http://www.roland.com/ir/pdf/2014/20140514_2.pdf


2014-05-14
Announcement concerning Implementation of MBO and Recommendation to Tender (PDF:364KB)
http://www.roland.com/ir/pdf/2014/20140514.pdf

Elantric

#8
Prior threads with links / discussion of Roland's poor economic situation, and desire for corporate restructuring and absolve itself from lengthy delayed market response timing  due to the need to include the decision / votes from Roland shareholders prior to enacting any changes in the executive management and corporate direction explains the current situation with the "buy back". 

Re: Waking up Roland using Social Media?
https://www.vguitarforums.com/smf/index.php?topic=7663.msg77067#msg77067

Roland's sales and profits?
https://www.vguitarforums.com/smf/index.php?topic=10865.msg78925#msg78925

Its a volatile time for all music manufacturers.

When Guitar Center tells its Suppliers without warning in April 2014 that they will be declining April  /  May 2014 Orders and canceling issuing payments, this impacts the whole industry - even Fender , Gibson,  Ernie Ball/MusicMan, Mark Bass IT, etc, are feeling the squeeze.

Guitar Center may be acquired
https://www.vguitarforums.com/smf/index.php?topic=11246.0




Rhcole

Heck,

It's a volatile time for the music industry. "It was the best of times, it was the worst of times", indeed.

montyrivers

It's a volatile time for any industry whose greater market share is owned and managed by train wreck high risk investment parasites like Bain Capital.

I actually think this buyout is in the company's best interest.  On top of that, Japan's market functions a bit differently than the outside world.

e.g.  When asked for their opinions, western market gurus and investment firms look at Japan's market and become confused.  They see any publicly traded Japanese based corp and ask, "WHAT DO YOU MEAN YOU DON'T HAVE A CONTACT WITHN YOUR COUNTRY'S LEGISLATURE!?"

aliensporebomb

#11
In a related, but unrelated development:

QuoteGuitar Center Severs Ties With Behringer:
THE MUSIC PRODUCT MARKET'S supplier-retailer relationships are always shifting, and usually without much comment. On May 16, however, Guitar Center took the unusual step of severing its longtime relationship with Music Group, parent company of Behringer, Midas, Klark Teknik, and Turbosound. A statement from Guitar Center cites Music Group's "revision to unreasonable business terms late last year and a continuous history of attempting to force unfavorable changes into agreements."

GC's statement continues: "Decisions like this are never made easily. There are rare occasions where the integrity of the relationships and agreements we make with vendors are challenged, despite the potential impact to the bottom line or overall sales. We can't speak for anyone else in the industry, but we'd had enough of watching Behringer try to do business this way. It's not the way we like to work with people and it's not productive. They made some questionable choices that put us into a position to develop a contingency plan. As we re-evaluated that plan several weeks ago, we found that it would allow us to build better relationships with other vendor partners in the category. When Plan B starts to make this much business sense, it became clear we didn't need to tolerate this anymore. We're focused on where we can succeed in partnership with our new vendors and we're excited about the future."

Music Group CEO Uli Behringer responded, "We were surprised by a recent public statement issued by Guitar Center. Over the last year, due to GC's highly publicized financial situation, we were forced to evaluate their creditworthiness. As a result of their credit rating, it was determined that they were a high risk and we were forced to put them on business hold. We certainly respect GC's decision to discontinue business with us and we thank them for our excellent 20-year relationship."

This is all over the guitar related message boards right now.   The water is swirling around the drain methinks.

A poster on the forum this was posted at had an opine regarding why:

QuoteArticle is too long, let me summarize:

Guitar Center will no longer carry Behringer products due to the fact that Behringer doesn't like not getting paid in full and on time according to contractual terms.
My music projects online at http://www.aliensporebomb.com/

GK Devices:  Roland VG-99, Boss GP-10, Boss SY-1000.

Elantric


Rhcole

Woof. Paper-thin margins in musical instruments and conservative growth numbers over the next several years. You can bet that their willingness to take a chance on radical new products is going to be small.

Don't plan on the world-beater VG-110 anytime soon.

Elantric

#14
QuoteWoof. Paper-thin margins in musical instruments and conservative growth numbers over the next several years. You can bet that their willingness to take a chance on radical new products is going to be small.

But those are  true "words of wisdom" for any Pro Audio manufacturer today in this depressed economy  - and explains why I do NOT think a true VG-99 replacement will be forthcoming until 2019

brooster


Elantric

#16
QuoteRoland Sold?

Henry Juskiewicz is proud to announce at 2014 Summer NAMM. Gibson Corp. welcomes Roland Corp to the Gibson Guitar family of lifestyle brands. Look for the new 2015 Roland produced Wurlitzer Juke Boxes at a Shopping Mall near you   ;)
http://www.gibson.com/Products/Wurlitzer/News/A%20Visit%20to%20Wurlitzer/



(just joking)

Read prior posts and docs above - basically Roland sought financial aid to buy out some stock holders, in order to react faster to changes in M.I. Market conditions during these volatile times.
http://www.roland.com/ir/pdf/2014/20140624_1.pdf

http://www.roland.com/ir/strategic.html

gumtown

I got a bit worried there for a moment  :)
Free "GR-55 FloorBoard" editor software from https://sourceforge.net/projects/grfloorboard/

Elantric

#18
http://www.musictrades.co.jp/webnews/english/2014/05/roland-to-go-private.html

May 16, 2014

Roland to Go Private
Jyunichi Miki, president of Roland Corporation, announced at press conference held in Hamamatsu on 14 that the company would go privately held company by management buy out. Tokowaka Corporation in Tokyo headed by Jyunichi Miki conducts TOB to purchase Roland common stock at yen1,875 from May 15 through June 25. Taiyo Fund, the second largest stock holder of Roland has reportedly agreed to support Miki and accept TOB offer. Roland stocks closed at yen1,582 on May 14 jumped up to yen1,868 on 15 after the announcement. It's reported that total amount to complete MBO is 4.16 million yen at the maximum. Miki reportedly serves as CEO of the company after MBO completes. 

The financial crisis in 2008 seriously damaged Roland's sales of digital musical instruments. (And VG-99 Sales)  The transaction is expected to contribute to smooth decision making under new management team, and accelerating structural reform by concentration in core competence. When it goes successful, Roland can move much more flexibly to cope with the changing market and consumer needs.

Miki said, "As a private company, we would rebuild our business structure for sustained growth in the future free from short-term business assessment by stock market." He attributed stagnant sales of Roland digital musical instruments to changing consumer tastes for inexpensive products. Demands for high quality but expensive Roland instruments quickly declined after the financial crisis. The company's consolidated sales for 2013 closed at March 31 turned black after 5 consecutive terms in loss, however, Miki said that it was mainly accomplished by weakened Yen against major currencies, but sales actually deteriorated.

According to 2013 Roland annual report announced on 14, total sales for the year was 8,567 million yen, an 18.4 % increase over the same term of last year. Net profit for the term was 470 million yen against 4,066 million yen loss in 2013.

Roland also announced a plan that Roland D.G., a subsidiary of Roland, manufacturer and distributor of industry inkjet printers, 3D laser scanners, cutting plotters, digital engravers, etc. would buy back 3,560,000 stocks of Roland D.G owned by Roland, which represent 40% of the total stocks. If voting stocks of Roland declines under 40%, Roland D.G. will become an affiliated company accounted for by the equity-method.



https://www.synthtopia.com/content/2014/05/23/management-buyout-of-roland-planned-by-current-ceo-taiyo-pacific-partners/

ericar123

How does this affect us, the people that want another vg product?
Is this good or bad?

Elantric

#20
QuoteHow does this affect us, the people that want another vg product?
http://www.dailyjobcuts.com/
It explains why in 2014 there is no $2,000 VG-100 for sale at this time - instead we have low cost Boss GP-10

QuoteThe financial crisis in 2008 seriously damaged Roland's sales of digital musical instruments. The transaction is expected to contribute to smooth decision making under new management team, and accelerating structural reform by concentration in core competence. When it goes successful, Roland can move much more flexibly to cope with the changing market and consumer needs.

Miki said, "As a private company, we would rebuild our business structure for sustained growth in the future free from short-term business assessment by stock market." He attributed stagnant sales of Roland digital musical instruments to changing consumer tastes for inexpensive products. Demands for high quality but expensive Roland instruments quickly declined after the financial crisis.

supernicd

As much as I'd have loved a VG-100 in 2014, it's hard to blame Roland for being smart about the economic market and doing what they need to do to keep their business healthy.  The flagship Fantom keyboards are gone too with no replacement product this year that I've seen.  Though I think they still make the TD-30K, so VDrums must still be selling OK. Or maybe VDrums are a space where they have no close competitors...
Strat w/ GK-3, Godin LGXT
VG-99, GR-55, GP-10
---------------------------------------------------------------

montyrivers

I think that Roland has more or less pulled their lot out of the professional keyboard workstation market in favor of Sonar integration for their Jupiter and RD pianos.  But they just sold Cakewalk so we can probably expect that to change sooner than later.  I hope the internal buyout leads to some more sound direction for the company in general.

Elantric

#23
Rather like the death ten years ago of the $$$ all in one DAW recording workstations, (Akai DPS24, Korg D3200, Roland VS-2480) IMHO the big $$$  keyboard workstations have now met a similar fate, having been replaced in 2014 by the more flexible Keyboard controller + computer + software (like N.I. Komplete, SampleTank3 etc) .
Talk to keyboard department managers and you will know  all the high end keyboards (like Korg Tritons, Kronos and Yamaha Motif) are experiencing very slow sales in 2014.

I predict the 8 in  / 8 out USB audio routing of the Boss GP-10 provides an early predictor of the path Roland is working on for future VGuitar systems -  a software VSTi/AU plugin for hexaphonic COSM processing.


-----


At Winter NAMM, I had a short talk with former Roland US CEO - Chris Bristol, (Now Retired)  - who took over from Tom Beckman  - who ran Roland US from 1978 to 1993.

More or less told me that they run very lean these days, and " . . . Tom Beckman was the one who made all the money when Roland Japan purchased all his shares  back in 1993" 


http://www.soundonsound.com/sos/nov04/articles/roland.htm
1978
http://allthingsgear.com/companies/boss/
Company Description:
Boss Corporation is a musical instruments company started by Tom Beckman in 1973. Originally called Beckman Musical Instruments, Boss was bought by Roland in 1978. Boss is best known for their guitar effects pedals.
Company History:
1973 - Boss founded as Beckman Musical Instruments.
1974 - B-100 The Boss released. This was a clip-on preamp and pickup used to amplify acoustic guitars.


http://www.bossarea.com/
http://www.stompboxzone.com/forum/


1973 - August - Beckman Musical Instruments buys Camco and moves them to Los Angeles, California.
1978 - Don Lombardi buys Camco's tooling and begins mfg. Drum Workshop Drums (DW) fashioned after the Camco style.
1978 - Hoshino of Japan, a.k.a. Tama, buys the Camco name from Beckman Musical Instrument Co.
http://www.carlsguitarcorner.com/archives/2011_4.html
PPS: Tom Beckman when he ran (BMI) Beckman Musical Instruments sold Rudy (Schlacher) of US Music Corp. the Washburn name in 1978, to start "Roland US" with Roland's original Japanese founder, Ikutaro Kakehashi. A few years later the international Roland company bought out Tom's share of Roland US.

Throughout the mid-1970s, Roland had supported two distributors in the USA. Multivox had been doing a reasonable job on the East Coast, but had little penetration into the huge and important markets on the West Coast so, in 1976, Kakehashi had appointed a Los Angeles company, Beckman Musical Instruments, to be its West-coast distributor. With both companies working in parallel, it became apparent that Tom Beckman's BMI was the more successful so, in 1978, Roland and BMI formed Roland US, with each owning 50 percent of the new joint venture. Although adverse financial conditions and a fundamental difference of opinion about how to deal with them were later to force Roland to buy Beckman's share and make Roland US the company's first wholly owned subsidiary, the joint-venture strategy was close to Kakehashi's heart, and it seemed like a good move at the time.


Tom Beckman currently owns a winery with his son less than an hour drive from me
http://www.beckmenvineyards.com/pages/About-Us.html
The son of a cattle buyer, Tom Beckmen spent his childhood working on a local ranch outside of Chicago, gathering onions and picking tomatoes. This early experience helped him to develop a connection with the land and expertise as a hands-on farmer. Raised with an extensive understanding of agriculture, he put himself through college by managing farm programs.

In addition to his farming experience, Tom is also an accomplished entrepreneur. In the early sixties, Tom was a traveling salesman or "music man" for twenty states. During this time, he noted the great changes that were taking place in the music industry. Seizing the moment, Tom founded the visionary Roland Corporation U.S., pioneering electronic music and creating the merger of music and computer applications. This revolutionary company and its products profoundly influenced the production of music worldwide.

The heart of Tom's entrepreneurial success has always been his ability to look towards the future and embrace new challenges. This desire to continually evolve and test himself prompted Tom to sell Roland in 1993 and pursue a life of winegrowing.

Since founding Beckmen Vineyards with his son Steve in 1994, Tom has been focused on the cultivation of his estate vineyards and new innovations for winegrowing in the Santa Ynez Valley. He brings both business acumen and a respect for the hard work of farming to Beckmen Vineyards. In wine, as in everything else, Tom is driven to go beyond expectations. His vision and patience have guided the maturing of Beckmen's estate vineyards and the production of the winery's acclaimed portfolio of handcrafted wines. "My wines must be worthwhile for me, my family and the public who drink them."

Tom enjoys both the natural beauty and the peace of the vineyards that surround his home, where he lives with his wife, Judy. As a hands-on farmer, driving the tractor and working the vines, he has helped to establish Purisima Mountain Vineyard as a world-class winegrowing site, and the source of some of North America's most highly prized Rhone varietal wines. He has also been an important figure in the emergence of Santa Barbara County as one California's preeminent winegrowing regions.


More good reading of the history of Roland is here at Jeff Rona's website:
http://jeffrona.com/2013/01/midi-from-the-inside/
Quote
I was at a local music store in Hollywood and struck up a casual conversation with a couple of guys from Roland who happened to be there at the time. When I told them what I was doing with synths and desktop computers, they got very excited. Within a couple days I found myself in the office of Tom Beckman, the president of Roland US, explaining my work and background. When he asked me if I wanted a job and could I write code for music software. I lied, basically, and said yes. I became a programmer and instrument designer for Roland that day.Within a few weeks of starting (I quickly got a programming coach to help me get up to speed fast) I had my first official meeting with some of Roland's top engineers and designers, who were in LA from Roland headquarters in Japan. We hit it off very well right from the start. I had learned a few words of Japanese and did my best to express my deep admiration for their work (one of my guests had designed the TR-808 drum machine!). They brought me two prototype keyboards. They showed me a 5 pin jack on the back each and said "we think this is very useful...we want you to devote all your time to writing software for this." These were likely the first 2 MIDI instruments in the country. The plan was to develop software to show what could be done with combining keyboards and sequencing. I was blown away. I had already written some software to sequence analog synthesizers with a pre-MIDI computer interface. This was a whole new world.

A few months later I was asked to represent Roland at a small private meeting at the NAMM show to discuss how American musical instrument companies might be able to coordinate their efforts in making MIDI a true standard that was useful, functional, and consistent. I can't remember everyone at that meeting, but I do remember Bob Moog, Tom Oberheim, Dave Smith, Roger Linn, as well as engineers and designers from Yamaha, Roland, Akai, Casio, Korg, and a few other companies that had gotten a start on MIDI. (This was also the 1983 NAMM show where MIDI was shown to the public for the first time by my Roland US cohort Jim Mothersbaugh).


I (Elantric) founded the Valley Arts Guitar Keyboard department in 1983 - after attending the 1983 Winter NAMM Show and witnessed the "birth of MIDI" introduced jointly by Dave Smith of Sequential Circuits and Jim Mothersbough of Roland
http://jeffrona.com/2013/01/midi-from-the-inside/

Jim Mothersbaugh and Dave Smith in the first public showing of MIDI
I was a witness to this major event  - recently discovered I'm in the background in a photo at Jeff Rona's web site  - I'm in the back (Yellow Circle)
[/i]

sixeight

QuoteI predict the 8 in  / 8 out USB audio routing of the Boss GP-10 provides an early predictor of the path Roland is working on for VGuitar systems - that is a software VSTi/AU plugin for COSM processing.

Now that would be a dream come true.