Join our daily newsletter At The Bell to receive exclusive market insights
- Hearing device maker Nuheara (NUH) has restarted production of its latest product in Malaysia
- Production of the IQbuds2 MAX device was temporarily paused as Malaysia went into COVID-19 lockdown in March
- Nuheara says some of the lockdown restrictions have now been lifted, meaning it can start to scale production back up
- The IQbuds2 MAX is a pair of earbuds designed to help users hear and personalise the sound of the world around them
- Before the lockdown, Nuheara had started work on a 6000-unit order for the product
- Shares in Nuhearea have gained over 40 per cent today, currently worth two cents each
Hearing device maker Nuheara (NUH) has recommenced production of its recently-launched IQbuds2 MAX product in Malaysia.
The company told shareholders today the Malaysian Government has lifted some COVID-19 lockdown restrictions which means some manufacturing facilities have come back online.
Interestingly, the country has recently had its “restricted movement order” extended until April 28, meaning Malaysians are still only allowed to leave their homes to buy food.
Nevertheless, Nuheara is jumping at the opportunity to start scaling production of its IQbuds2 MAX back up.
The company said this production is now a priority and will be scaled up as the Malaysian workforce is brought back online.
Nuheara CEO Justin Miller said despite the COVID-19 crisis, sales have been steady via the company’s Direct to Consumer (DTC) channel.
“Our DTC strategy has proved to be effective and resilient during this global pandemic with April preorder sales remaining strong,” Justin said.
“The fact customers can self-manage their hearing health journey from the comfort of their own home, without needing to go into a store or audiologist’s office, means they can both look after their hearing and remain safe,” he said.
Simple hearing
The IQbuds2 MAX is a hearing aid alternative in the form of earbuds.
The product can help users hear the world around them through the small earbuds and personalise and control the devices through a mobile app.
The latest version of the IQbuds range was announced in early January 2020.
Before the coronavirus lockdown, Nuheara had already locked in an order for 6000 IQbuds2 MAX units and started initial production of the devices.
Of course, on top of the Malaysian lockdown, Nuheara has faced its own challenges: the company has temporarily stood down non-essential employees to cut costs as the virus rages on, while senior executives have slashed their own paychecks by 50 per cent.
Nevertheless, the company insists pre-orders for the IQbuds2 MAX products have stayed strong.
“We are committed to shipping these pre-order units as quickly as we can and building our supply capacity for both our DTC channel and for our healthcare retail partners,” Justin said.
Investors seem pleased production is back up and running, with Nuheara among today’s top performers on the ASX. Shares in the company are sitting a pretty 42.86 per cent higher in mid-morning trade, worth two cents each.
