Clarification of a few issues relating to the H1 Revenue update....

Clarification of a few issues relating to the H1 Revenue update. (My interpretation)

Considering the announcement in isolation - it makes for horrible reading, is vague, ambiguous and disingenuous and left me concerned. I sent a scathing email to the company management listing my concerns and dissatisfaction. To their credit, I received a detailed response and had the opportunity to engage.

Bottom line - Next Science policy as regards revenue, is to recognise on delivery to their customer (in the customers hands! The policy is disclosed in their financial accounts). They were made aware at the back end of last week, that an order due for delivery to Zimmer (from their manufacture facility in Mexico) would not in fact be received by Zimmer until the beginning of Q3. I assume this was a significant order and part of the multi-year agreement between Next Science and Zimmer. This is purely a timing issue but would affect Q2 negatively (and consequently Q3 positively).

The original guidance to which this update referred did not consider the possible impact of Xperience revenue (given that FDA approval had not yet been received) and so this updated guidance also does not include the possible impact of Xperience revenue.