Ann: Buddy Releases Pro Forma Unaudited 1H FY2021 Results, page-102

Interview with DM that I heard on ES tonight.

Key points for me;

1st time in the co's history they know how much stock they will have in their warehouses over the next 6 months, which will fix their historic supply issues and has allowed the guidance. My take on this is that the guidance becomes a baseline based on that aspect alone.

Clean missed shipping dates late last year, due to a part that was proven to not be right that had to be remedied, clean has shipped to US pre-orders and Aus to follow, with retail US supply next after that.

Costco has a high smart home demand online and should be in bricks and mortar stores early in the 2nd half of the year. Stock in Lowes with more of the SKU's to be added as stock is built and supplied. "There is still a big opportunity for growth on top of the orders we have" (truncated quote)

On customer feedback - Amazon has a 4 star bricks and mortar physical store, LIFX has products in there. By and large people are having a good experience with the products and app, but they are taking all negative feedback seriously and trying to remedy. They read all of them and are working to help solve the issues (mostly connectivity)

DM having less to do with Amazon since Don has come on board, Amazon seeking energy data from the LifX suite of products, stated - relationship is very strong and sees it continuing. Couldn't comment on bundling, but they are a close partner and have a strong relationship.

Directors are buying, there are no material sales from staff.

On current orders or guidance revision, they believe are on the money, but they are required to report up or down on guidance, no orders are being turned away. They are building as fast as is possible that the current financing will allow. Financing was on 1st of Jan, they had access on the 2nd, the orders placed initially should land in the next two weeks, add up to 45 day payment terms, there is not a lot the half year to forecast in that context.

Switch and clean, have they had many opening orders - all initial orders were small batched, then pre-sales, wharehouse and tv sellers will have clean to sell very soon and will form a part of the tail end on the supplied guidance. The big boys Costco and Google seem to be going slow on clean due to wanting to make sure all tests on the efficacy of the products are up to scratch before they go harder.

Court case - dismissed, then complainant has made a subsequent claim, directions hearing late March

New products being developed and new markets they are trying to tap