Sonova, the parent company of Advanced Bionics, reports that AB’s annual growth was over 30% in both Swiss Francs and local currencies. The company says:
“Cochlear implants segment – Drawing from a complete portfolio
The performance of the cochlear implants segment was another highlight in the year under review. The segment achieved sales of CHF 195.3 million, an increase of 33.1% in Swiss francs and 36.0% in local currencies. Supported in particular by the launch of the Naída CI Q70 sound processor in summer 2013, sales accelerated over the course of the year, exceeding a year-on-year growth of 50% in the second half of 2013/14. Europe and North America in particular responded very well to the new sound processor that incorporates many industry-first innovations shared with Phonak hearing aids. The balanced portfolio of electrodes and Advanced Bionics’ swimmable processor also supported growth, which reflected both the addition of new customer clinics and increased penetration at existing accounts. As in the previous year, cochlear implants sales included the fulfillment of a central government tender in China.
Profit from the cochlear implants segment improved strongly during financial year 2013/14, in line with our business plan, despite significant expenses from the launch of new products, particularly the new Naída CI Q70 sound processor. EBITA for the segment reached 12.8 million, representing an operating margin of 6.6%. This is an important step towards our goal of bringing the EBITA margin of the cochlear implants business closer to the corporate average. Normalized for one-off costs, principally the increased product liability provision related to Advanced Bionics’ Vendor B product recall in 2006, the cochlear implants segment had achieved an EBITA of CHF 1.8 million in the previous financial year. In 2013/14 the relevant parameters for the said product liability provision developed fully in line with the assumptions considered in the accounts of the previous financial year. Thus no releases or additions with P&L effect were booked to the provision in the year under review.”
Read the full financial report. Information specific to Advanced Bionics is on pages 26 and 27.
AB also plans to continue the rapid pace of new product introduction. Slide 27 of the investor presentation shows a rough timelines of new electrodes, implants, and processors through fiscal year 2016.
Sonova presented the product pipeline for Advanced Bionics during the Investor and Analyst Day 2013. Recent products including the Neptune processor, HiRes 90k Advantage implant, HiFocus Mid-Scala electrode array, and the Naída CI Q70 processor were highlighted. Advanced Bionics is on track to release new electrodes, implants, and processors in 2014 and also in 2015. Here is the timeline from the investor presentation.
Click to view the Sonova Holdings, parent company of Advanced Bionics investor presentation
Points of interest for Advanced Bionics users include:
- Product pipeline on page 9. The bottom row shows that the low-power wireless communication system in the upcoming Naida CI Q70 will transition to digital in future processors. The new technology is described on pages 16-19.
- The Advanced Bionics product pipeline is on page 27. For 2013 we see the HiFocus Mid-Scala array, the HiRes 90k Advantage, and the Naida CI Q70 processor. New arrays, implants, and processors are scheduled roughly every year! This year’s products are described on pages 28-31.
- HiRes Optima, the low-power extended battery life strategy, is mentioned on page 32. The strategy is compatible with Harmony and Neptune processors as well as the Naida CI.
The Medical Device and Diagnostic Industry has selected Advanced Bionics as one of the top 10 finalist companies for Manufacturer of the Year.
The 10 Finalists for MD+DI’s Manufacturer of the Year Grow Leaps and Bounds in Technology Innovation
Advanced Bionics is one of four companies held by Sonova Group, which specializes in hearing and wireless systems. MD+DI Lifetime Achievement award winner, Alfred E. Mann first established Advanced Bionics to focus on developing, manufacturing, and distributing cochlear implants for the restoration of hearing to the deaf. Advanced Bionics’ global headquarters is in Valencia, CA. Key technologies include the ClearVoice, which provides sound processing to enhance speech understanding, and the Neptune, a swimmable sound processor. Neptune was a 2012 MDEA finalist.
See what Advanced Bionics, Phonak, and Unitron are developing together as members of the Sonova family.
INVESTOR & ANALYST MEETING – EUHA 2012