"I must express my disappointment with the 4C and the shareholder update released just prior to market close. Specifically, I am concerned at the following:
1. The 4C records no receipts from customers for the Oct-Dec 2014 quarter. Yet I distinctly recall you saying at the AGM had received payments from P&G in relation to the sk-ii launch. I had inferred these were exclusivity fees that were payable by P&G in advance. Yet the quarterly shows nothing. Of course it really doesn't help that no disclosures have been made by the company about how much and when money's are payable by P&G under the terms of the PDA. But, as I said, I had the distinct impression from what you said at the AGM that money's had recently been received which would show up in this 4C. Are you able to clarify/correct my obvious misunderstanding.
2. GSK is clearly a disappointment and very unexpected. 10 years of working with GSK on a manual toothbrush now discarded? Is that what I am to understand from this part of the announcement? It seems extremely bizarre that this could happen so suddenly after so much positive progress to date and all via a verbal conVersation with a GSK representative. Is this project in the dust bin completely ? Are manual toothbrushes now completely off the agenda with GSK and anyone else for that matter?
I look forward to hearing from you"
And here is his reply:
"In answer to your questions, there are a lot of very positive news contained in the Shareholder Update with P&G, Coty, GSK and Bodyguard and we are very pleased with all aspects. Specifically with GSK, we maintain excellent working relationships across the three parts of GSK. We do believe the more active electric toothbrush will have a very profound effect on tooth penetration and as we have conducted four very positive tests with GSK oral over several years, we will pursue tooth penetration using OBJ technology. That may be with several potential parties, we have suggested two in our Shareholder announcement.
Yes, we have invoiced the first revenues related to SKII but one needs to be reminded that these are the first invoices with a new contract and client and cash payments do take time. The 4C is a cash report, not a revenue report so we can only report cash received. Timing is everything.
The team remains focused on making all of our programs successful and we do not have any negative views anywhere. "
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OBJ Price at posting:
8.5¢ Sentiment: Buy Disclosure: Held
(20min delay)