BlueLine Partners Discloses 5.4% Stake in Sonic Innovations (SNCI) - 13D
In a 13D filing today, BlueLine Partners, LLC discloses a 5.4% stake in Sonic Innovations Inc. (Nasdaq: SNCI).
From the 'Purpose of the Transaction' section of the filing:
"BlueLine invests in companies it believes are undervalued relative to their potential. These are generally companies with an established brand and products, strong distribution channels and significant growth potential. BlueLine’s strategy is to invest in companies that have made some strategic or tactical error that can be corrected. As part of its investment approach, BlueLine seeks to work with the companies in which it invests, their management, directors and major shareholders to address and overcome existing challenges and thereby create or restore value.
In the case of the Company, shareholder value had been subordinated to the pursuit of technological leadership and top-line growth. During fiscal year 2005, increased SG&A spending resulted in significant losses and share price declines. In November 2005, the Company announced that Samuel L. Westover would become Chief Executive Officer. Mr. Westover immediately began actions to correct the situation through cost cuts and other strategic initiatives. BlueLine has met with Mr. Westover and believes that he has the experience necessary to complete the current turnaround and the vision required to lead the Company’s future growth. BlueLine believes careful leveraging of the Company’s technology strengths combined with focused efforts to increase the Company’s distribution channels will lead to both top-line growth and earnings expansion.
Depending on market conditions, general economic conditions and other factors, the Reporting Entities may purchase additional shares of Common Stock in the open market or in private transactions, or may dispose of all or a portion of the shares of Common Stock that they or any of them presently own or may hereafter acquire."
From the 'Purpose of the Transaction' section of the filing:
"BlueLine invests in companies it believes are undervalued relative to their potential. These are generally companies with an established brand and products, strong distribution channels and significant growth potential. BlueLine’s strategy is to invest in companies that have made some strategic or tactical error that can be corrected. As part of its investment approach, BlueLine seeks to work with the companies in which it invests, their management, directors and major shareholders to address and overcome existing challenges and thereby create or restore value.
In the case of the Company, shareholder value had been subordinated to the pursuit of technological leadership and top-line growth. During fiscal year 2005, increased SG&A spending resulted in significant losses and share price declines. In November 2005, the Company announced that Samuel L. Westover would become Chief Executive Officer. Mr. Westover immediately began actions to correct the situation through cost cuts and other strategic initiatives. BlueLine has met with Mr. Westover and believes that he has the experience necessary to complete the current turnaround and the vision required to lead the Company’s future growth. BlueLine believes careful leveraging of the Company’s technology strengths combined with focused efforts to increase the Company’s distribution channels will lead to both top-line growth and earnings expansion.
Depending on market conditions, general economic conditions and other factors, the Reporting Entities may purchase additional shares of Common Stock in the open market or in private transactions, or may dispose of all or a portion of the shares of Common Stock that they or any of them presently own or may hereafter acquire."
posted by Lon at 2:02 PM
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