Some of Justin's comments at the investor webinar today -
re development of an ear bud variant for HP – this will be a product that is “non competing” with any of NUH's product range
HP approaching NUH shows just how hard hearing technology is – even a company as large as HP can’t simply turn it on
More updates about HP over the next quarter
The HP contract is not exclusive - there are other OEM partners we are working with and will update the market as required if/when there are contracts signed
NUH has invested $40m to date in R&D over the years
The receivables lag partly reflects afterpay arrangements on online sales
Government health contracts not contributing revenue yet in a large way, but it provides validation - especially the creation of a category for hearables
6 x holiday marketing campaigns planned between now and Christmas to increase marketing spend now that we can ship on order (instead of pre/back order) from November
Really solid order book to start the quarter
Some audience questions -
Q. EarGo on the Nasdaq, MC >$1Bn. How do they compare to NUH?
A. EarGo IPO last Friday, they operate in the direct to consumer segment. Hearing is hot, EarGo highlights this - they cater to the hearing aid market. They have limited tech or IP - valuation is from their DTC approach - shows market values DTC.
Q. How big do you think the HP collaboration can be in units?
A. Only so much we can say about HP - as we can we will release to the market. Shareholders need to show patience, but because HP came to us (not the other way) it is evolving into a significant opportunity. A big deal for our business
Q. How long will phase 2 of HP OEM take to complete?
A. Things are moving swiftly with HP - phase 2 currently in full swing - will be completed in current quarter
Q. Are there clear deliverables to move to phase 3 and beyond with HP
A. There is no phase 3 at the moment. As we near completion of phase 2 we expect things will evolve into other phases and deliverables. HP is investing considerable amounts, we are under their control in terms of when they announce anything.
Q. Any concern that phase 3 will occur during peak advertising in this quarter? Will it materially affect NUH ability to fill orders?
A. Anything that happens via OEM is separate to what we do with NUH products. We have it all planned, and are in our comfort zone. We do have a lot of scale in our manufacturing facility for whatever happens on either front
Q. Will NUH be at CES this January, what will be your involvement?
A. CES is digital this year - not in person. Different type of approach this year - we will take a breather. We have enough on our plate with sales and OEM activity
NUH Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
(20min delay)