Sonova strengthens the Unitron brand and reviews middle ear implant activities
Sonova has been marketing an innovative product and service concept under the Sona brand since November 2009. Sona is a unique solution from both a product and a business model perspective. It includes the world's first upgradeable hearing instrument, which has gained positive response in the market since business operations began in April 2010. Sona is present in Germany, France, the Netherlands, Switzerland, and the United States to date.
Sonova will further develop this unique product and service concept for people with mild to moderate hearing loss, by integrating its Sona related activities into Unitron Hearing. "This transfer will further strengthen Sona and Unitron by providing more synergies in product and service development as well as in distribution. It is the next step to increase the impact of Sona's technology while making this innovative solution available to more customers around the globe", said Alexander Zschokke, Interim CEO of the Sonova Group. "Within Unitron Hearing, the Sona solutions will continue to be an important part of the innovative Sonova product portfolio." This transfer does not impact the sales or costs related to Sona, nor does it impact Sonova's sales or EBITA guidance for 2011/12.
Management Change at Unitron
To further strengthen and position Unitron as a strong brand of Sonova, the Group announces the appointment of Jan Metzdorff as new President of Unitron Hearing. Effective immediately, he will succeed Michael Tease, who is leaving Unitron Hearing to take on new professional and personal challenges outside the Group. Jan Metzdorff has been working in the hearing instrument industry for over 14 years and has managed several sales companies during his seven years with Sonova. Since April 2010, he has been responsible for Unitron's international sales development. "Jan Metzdorff has a profound knowledge of and experience in the hearing aid business and a proven track record," says Alexander Zschokke. "We are convinced that he is the right person to further develop Unitron's strong market position."
Middle ear implant activities in Lonay, Switzerland under review
As part of the further consolidation of the Medical Division of Sonova, the company is evaluating the closure of the Phonak Acoustic Implants site in Lonay, Switzerland, which employs 26 people today working on the middle ear implant Ingenia. The Ingenia device is still in the development stage, does not yet have the CE certification or FDA approval, and is not yet commercially available. Sonova's mid-term projections for sales and profitability did not include the Ingenia product and therefore, this decision does not affect the company's outlook.
The decision is pending the outcome of the employee consultation process that has been initiated. The respective authorities have been informed. "An orientation about any organizational or personnel measures will be given only after the consultation period has ended and the results of the employee consultation have been carefully reviewed," says Alexander Zschokke.
Management believes that, for Sonova, the cochlear implant market provides significant better mid-term opportunities for growth and profitability than the market for middle ear implant products. Therefore, any further development of the middle ear implant technology will take a second priority to the primarily focus of the Medical Division to develop future innovations in cochlear implant products, especially in light of the return to the U.S. market of the existing HiRes 90K product. The proposed decision has no impact of the company's R&D efforts related to hearing instruments.
Should the decision to close the Lonay facility proceed, the company would also have to write-off the remaining capitalized R&D costs related to Ingenia of CHF 5 million, as a one-time, non-cash impairment charge. Neither the restructuring charges nor the impairment charge would impact the full year guidance on EBITA.
This Media Release may contain forward-looking statements which offer no guarantee with regard to future performance. These statements are made on the basis of management's views and assumptions regarding future events and business performance at the time the statements are made. They are subject to risks and uncertainties including, but not confined to, future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors outside the company's control.
Sonova Holding AG
Sonova is the leading provider of innovative hearing healthcare solutions. The globally active group is the world's top manufacturer of hearing systems, the market leader in wireless communication systems for audiology applications, develops and manufactures advanced cochlear implant systems and provides professional solutions for hearing protection. Sonova is pursuing a clear growth strategy and is intent to grow faster than the market. To this end it is constantly expanding its existing business segments and branching out into other areas of the hearing healthcare industry. Present in over 90 countries, and with a workforce of over 7,800 employees, Sonova generated sales of CHF 1.6 billion in the financial year 2010/11 and a net profit of CHF 231 million. This financially strong group of companies bases its success on innovation, customer focus and proactive cost management. The company has been successfully promoting understanding and communication for over 60 years, and is ideally positioned to benefit from the trends in this growth industry.
For more information please visit www.sonova.com.
Sonova shares (ticker symbol:SOON) have been listed on the SIX Swiss Exchange since 1994. The securities of Sonova have not been and will not be registered under the U.S. Securities Act and may not be offered or sold in the United States of America except pursuant to an exemption from the registration requirements under the U.S. Securities Act, or outside the United States of America in reliance on Regulation S under the U.S. Securities Act.