Join our daily newsletter At The Bell to receive exclusive market insights
- Hearing technology company Nuheara (NUH) has seen a 406 per cent growth in invoiced revenue to $6.9 million for the first half of the 2021 financial year
- The increase reflects the sales growth of Nuheara’s specialty hearing aids along with a three-year partnership with global IT equipment company HP
- HP and Nuheara signed a manufacture and supply deal in December to co-develop the True Wireless Earbud and charging case
- Additionally, Nuheara reported a positive earnings before interest, taxes, depreciation and amortisation of roughly $1.48 million compared to a loss of $3.6 million in the first half of FY20
- Nuheara came close to breaking even in net operating cashflow with nearly $87,000 used up compared to $1.2 million in the prior corresponding period
- The company rounded off the half-year with about $2.4 million in cash and expects to see significant growth in the current period
- Nuheara is up 4.72 per cent and shares are trading at 4.4 cents
Nuheara (NUH) has reported a 406 per cent increase to $6.9 million in invoiced revenue for the first half of the 2021 financial year.
This substantial increase reflects the sales growth of Nuheara’s IQbuds2 MAX along with a successful collaboration with global technology company HP Inc.
Nuheara first partnered with the computer and IT equipment provider in August last year to co-develop a new audio experience for its customers.
The partnership was strengthened in October, when HP awarded Nuheara a $2 million contract, and again in December when the companies signed a three-year manufacture and supply deal. The first product under this long-term agreement will be the HP-branded True Wireless Earbud and charging case. However it will also carry a Nuheara co-brand.
Excitingly, HP launched the product at the annual Consumer Electronics Show event in Las Vegas and expects the earbuds to be available for purchase from April this year.
“Securing a three-year manufacturing and supply agreement with HP Inc has further validated our unique technology and global opportunity,” Nuheara CEO Justin Miller said.
Additional financial results for the half-year include a positive earnings before interest, taxes, depreciation and amortisation of roughly $1.48 million compared to a loss of $3.6 million in the first half of FY20.
Nuheara did record a net loss from operations after tax of $842,166 but this is an improvement from the $5.7 million loss in the prior corresponding period (pcp).
Importantly, the hearing technology company came close to breaking even for net operating cash flows with an $86,972 outflow compared to spending over $1.2 million in the pcp.
“I am reassured by the significant improvement we returned across all key financial indicators and most notably, the close to break-even position of our net operating cash flows for the half year,” Justin said.
Nuheara rounded off the half-year with roughly $2.4 million in cash compared to $4.4 million at the started of the period.
“H2 is forecast to see this ambition realised with further growth expected in our global online DTC sales, expansion of sales campaigns with our traditional retail partners, and the delivery of the first mass production units for our OEM partner HP,” Justin concluded.
Company shares are up 4.72 per cent and trading at 4.4 cents at 12:38 pm AEDT.
