IntriCon Signs New Multi-Year Agreement With its Largest Customer, Further Supporting Long-Term Growth Outlook
Jul 18, 2019
“We were pleased to receive a four-year contract with our largest Medical customer. While this agreement was anticipated in our 2019 guidance, it further fuels our confidence in the significant long-term growth prospects for our Medical Biotelemetry business,” said
Concurrently, the company reported preliminary, unaudited revenue for the second quarter 2019 and lowered its revenue and gross margin outlook for full year 2019 to reflect events that are expected to have an impact on the second half of the year.
Second Quarter 2019 Preliminary Revenue and One-Time Non-Cash Charge
Subject to quarter-end closing adjustments,
- lower than anticipated order volume related to its largest customer’s on-going global commercial product launch to continue through at least the third quarter 2019
- order delays associated with restructuring activity within a large insurance customer’s hearing health business that are expected to continue through the remainder of 2019
- the impact of the discontinued operations of the company’s
Due to the lower revenue range and divestiture of the
“In addition to the confidence we have in the growth of our Medical business, we are excited about our opportunity to capitalize on the transition emerging in the U.S. that opens up the over-the-counter market for better, more accessible, affordable hearing aids. We remain committed to our investment in Hearing Help Express and optimizing our direct-to-consumer sales model, while seeking partnerships that can accelerate penetration in this rapidly emerging space,” Gorder added.
In conclusion, Gorder noted, “Greater visibility into two of our largest customer’s purchasing cycles for the second half of the year necessitated a change to our near-term revenue and associated gross margin expectations included in our prior guidance for the full year 2019. We remain as confident as ever that our longstanding customer and partner relationships are strong, the underlying fundamentals of our core business are stable, and excited by the long runway we have ahead for growth in both our
Second Quarter Financial Results and Conference Call
Statements made in this release and in IntriCon’s other public filings and releases that are not historical facts or that include forward-looking terminology, including estimates of future results, are “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be affected by known and unknown risks, uncertainties and other factors that are beyond IntriCon’s control, and may cause IntriCon’s actual results, performance or achievements to differ materially from the results, performance and achievements expressed or implied in the forward-looking statements. These risks, uncertainties and other factors are detailed from time to time in the company’s filings with the
Source: IntriCon Corporation