IIN - Earnings call transcript Q3 2017

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Operator

Good day everyone, and welcome to the IntriCon Third Quarter 2017 Results Conference Call. Today's conference is being recorded. And at this time, I would like to turn the conference over to Scott Longval, Chief Financial Officer. Please go ahead, sir.

Scott Longval

Thank you, Operator.

call Gorder, today's CEO. on me is IntriCon's Mark Joining

forward-looking preface would with Today's Before IntriCon's are management, certain uncertainty assumptions I subject changes estimates to on conference These our current based contains and statement. we begin, of Harbor in like circumstances. remarks and statements Safe the call to are statements. and customary

Risk today's that materially Given statements. Actual forward-looking cause reliance Mark Factors on XX-K from expectations and include those filing and these a the IntriCon's at these for would XXXX. among of our Results year-ended uncertainties, factors you the Financial I the December set should not XX, call. contained differences such strategic look and forth in Condition may Management's quarter. could Discussion for headings With place third in vary Important undue introduce of to others, Operations that, Analysis results in like

Mark Gorder

and everyone reported our hearing net XX.X% most a begin and had chance The to I value help million in thank more today. time quarter for performance. detail financials and us sales $XX.X Scott, in the for from and drove will results reviewing you by strong Gains record quarter that of cover medical press period. third release. quarter. the review we'll By your company you in this of Thank $XX you up the another questions. of third Scott million, prior-year the joining take After to key then like would highlights

key quarter. affordable are outcomes direct-to-consumer hearing meeting In milestones channel several successfully addition, to based new third a the during superior we healthcare, cultivating deliver

of CMG period. continuous quarter prior Medtronic our increased in Medtronic's long-term, both and Looking systems. MiniMed XX.X% at XXXG providing glucose ramp very and the primarily monitoring the monitor positioned We year XXXX was assembly. business glucose from wireless third well medical gain production or by remain with driven two XXXG continued businesses, our the sensor The primary

of diabetes their hybrid release system and in share, August the earnings increase in installed XXXG have the demand. in XX, their driving for announced closed on Including their XXXX, MiniMed technology. and part XXXG base States. Medtronic systems demand increased market These first MiniMed markets CGM As the world’s a loop strong large global United international

Diabetes of it patients, facilitate of intends currently for As higher an insulin Care key overall XX,XXX us sale and use temporarily to Approximately a a pump pumps Corporation, doubled, Animas of fourth Medtronic will Companies, and products. pump. in pumps. & capacity. in anticipate has caregivers outstripping as that selected Medtronic Johnson the sales choice than in fiscal discontinue their they transition of the the offered And Animas to result, XXXX, we its to patients insulin transfer Medtronic demand expects to partner by Medtronic’s sensor production sensor increased of assembly have of unit one a Johnson quarter, component to production which drive the XXXX. significantly more providers. option seamless a Furthermore capacity healthcare end announced will Animas manufacture sensor using be Patients CGMs October

XXXX. be We throughout for growth driver partnership expect another this Medtronic to

channel third base and partners health, including quarter, Turning sales, hearing growth the Hearing in private declining sales. grew direct-to-consumer Health. label value a our in insurance contribution million HHE, $X.X partially new from business growing offset of conventional Sales the to XX.X% stemming addition this prior-year traction by primarily XX.X% from from from

we integrating XXXX. to XX% a in In DeKalb, acquired and we HHE, our in the Illinois-based mail quarter. direct-to-consumer HHE, announced, in January option quarter we our stake fourth previously in substantial organization. exercised during XXXX, the initial acquire close fourth Since the to HHE order taking optimizing provider hearing the a progress is stage of As aid remaining stake that XX% have expected made

hired HHE a of driving the third the including quarter new quarter, XX% are year, relocated we Those Vice a metrics in a customers, over XX% increase paying aids backlog sequential aid the increase the two-fold President the portfolio. into into of hearing direct-to-consumer orders. key than first activities more IntriCon’s growth XX% sales a in part and off leads, During aid hearing increase net business, in digital and hearing introduced

launched rose We we our through quarter. through quarter milestone during XX% selling be devices significant Hearing device XX% and first HHE of devices, that second the to over continued XXXX with traction. HHE a given the we’re HHE orders second pleased IntriCon’s aid the IntriCon are XXXX

We intend to expect on XXXX into we fourth advertising the and sequential metrics, further fourth quarter growth in and increase Based accelerate quarter, and these early the XXXX. continued investment to in growth. our throughout

in we a In acquire in agreement in to XX% headquartered addition into to an HHE, Frankfurt, Germany. April XXXX entered Soundperience, stake

the business exclusive in not on Soundperience We million the with rather made on do have access $X.X impact we financial results, recently, a will United Just critical States will to operating investment. anticipate technology. final us provide payment notable the but our it software

self-fitting that of today, in technology Signison Soundperience Brain joint previously notably hearing hearing hearing Sentibo and way the first branded used processing, with our the market analyzing aid most training The disclosed is the is and has Smart software central being software peripheral through a System. venture as brain designed psycho-acoustic German sophisticated, Soundperience.

U.S. harvest international of during a its absolute potential critical price Smart of reduce we conclusions access drastically the low-cost the too piloting version Incorporating U.S. to in technology is the is satisfaction. early to the hearing greater step self-fitting application, Brain believe healthcare pilot, drive creating and increase high-quality, aids, we customer ecosystem. cloud-based technology Soundperience’s addition Well drop our from In System Sentibo it began to quarter. our third hearing a

NHS than inroads into and of Looking Health National to international the approve Service sales some take hearing in while focus to continue we longer initiatives, UK, to efforts at the the our clinics to healthcare the make expected.

hearing XXXX. to began by hearing President Hearing of recently Shifting signing Donald at affordable public a cost. advancements and and underserved of Americans. signed an made developments designed there Echoing into the orders. forefront accessible adults designed that aids we to Trump, law hearing provide quarter, a By solutions today which The during hearing in at access millions was The we is taking in Hearing legislation is been much to IntriCon a remove create Legislation the and professional. access Act the at is enable by loss is to the provide law, We new During can OTC health Aid includes solutions OTC moderate-hearing Over-the-Counter to effort innovative a or lower law barriers policy, XXXX. cost. public aids Act in have unserved hearing to this we’ve to innovative care a initial significant era believe we significant that step greater being spearheading several hearing OTC Act access said that before, clinics made without lower and OTC healthcare. the forward with solutions have provide Hearing device of what important entered Aid mild-to greater new seen an prevent this health. Aid

for to I’d call a financials. like over our Scott Now review to turn the of

Scott Longval

financial in our third Thank detail. reviewing quarter begin more by you, results Mark. I'll

shareholders XX.X% revenue XXXX attributed XXXX in net increase The a prior from to customer year-over-year our as well year $XX.X diluted per posted our hearing million, or third reported in the net per net million from period. versus due For continued million largest loss value of the sales quarter. traction as IntriCon third company $X.X to quarter, gains to the shareholders was primarily of the health. up medical $X.XX diluted million of for share attributable income $X.XX share or $X.X $XX

as the year's stem XX.X%, third for the profit quarter. sold XX.X% into the from direct-to-consumer volume IntriCon being HHE more business devices in inclusion in gross of up prior greater primarily The Third significantly as channel. quarter XXXX HHE in margins were increase well

expect We the of continue largely third $X.X increase in were growth. HHE million trend drive compared quarter. due to expenses third in in quarter. this to to the key million year was and $X.X prior inclusion the the quarter for business XXXX, Operating fourth to initiatives The

to from end $X.X our debt value the million Turning the of $X.X end significant Despite total hearing healthcare, financial down and of at to in XXXX. the at million other investments quarter metrics. million $X.X second we reduced

Mark XX% stake As remaining close during in previously HHE. in the mentioned, January exercise our is XXXX acquire to option That to quarter. fourth expected we the

and have year which between by $XXX,XXX losses non-cash in no second allocated to As related operating $XXX,XXX, quarter will of include our acquisition call, majority cost previously prior could closing, discussed to may date on amortization, HHE and amount to owner. periods likely incurred cash losses have the results, future all impact. of the of we a That related to part range absorb we absorb the earnings portion this

net portion on allocated based to range available, $X.XX year the loss and majority to to guidance, of HHE we previously the absorb forma $XX.X that’s fourth anticipate of prior compared pro $XX $X.XX of information excluding the period quarter the currently sales terms million million $XX in the In owner. EPS positive to and million between XXXX losses to a the

$XX.X net million our $XX to million we compared between million, me, XXXX. to $XX sales – are excuse year, range and the For in $XX.X guidance raising to compared

to continued ranging forward strong annual million $XXX XXXX, Looking growth we anticipate with revenues a to from million. $XXX

any back over questions. operator, so to to can like call Now I'd we take turn the the

Operator

Certainly our question D'Silva, ahead. first And Riley FBR go B. Instructions]. [Operator Please Andrew from Inc. come will

Andrew D'Silva

afternoon. Thanks my for questions. taking Hey, good

you’re all, making of progress here. fronts glad several to First see on

are better So, going just some can that the I so of dynamics internally. on understand

any or should be we new stocking we ’XX? a You rate we this place strong, run out think the really order orders taking sort very of period the of during noted as Medtronic expecting close of were should kind and is ’XX larger

Scott Longval

we we said of look Clearly to over they’ve we’ve they at Medtronic what up in through well we the half all transition have a second surrounding products publicly. business been year look and if accepted you the defer if and that’s talk really the place. that made ramp the about to very seen these commentary Yeah, market try

and ahead down get orders ourselves obviously So, I specific in, the pipe, comments coming too the don’t that of contributor release anticipate in they and we very be XXXX to on that. but want customer strong a made commenting would coming to a start did we far

Andrew D'Silva

period what pinpoint a hearing time that is large the that’s pretty usually grace realistic at timeline out? help is. involved but here business, more been a a there hearing what perhaps hearing I’m just of and place the And can that little needs bit to passed. next Okay, to the of perhaps the from fantastic. bill to over glad FDA a standpoint realistic I has any years give side anything than may take in you’ve us discussions Maybe or know you’re about regulation see us sense you moving few of

Mark Gorder

just that did thought passage, rather and which as Andrew, this regulation the I soon three meeting six specification move later D.C. all is Washington the get willing months Senator the with July… office nobody years really sense to would about getting put out passed draft interested the they’re is be Mark. to last Yes, actually to FTC, a week they it have out was us think FDA specification, speak to would how going maybe the the as that that and do. I quickly Warren's and They the in done. sooner go could this in I than parties, after

Scott Longval

August.

Mark Gorder

…August.

through fight get specification. and will them So, for to industry changes. FDA – they been oligopoly this from has people move comment it, Senator go a the February, Warren way year that to will next draft these have prevent at it positive to and very we looking the probably March to and that quickly But periods so slow down. consumers spoken And they’ll in, the of encouraged have try obviously to head of trying understand traditional benefit the the then they we’re

So be regulation. you my – I guess it the year and the I from me, approximately will would have passage written will a ask if think they

Andrew D'Silva

a to how the segway after market process? year you’re And you it, next are mentioned see now help regulations being passed. or on from or share is point, a similar just going a trying of actually there gain capitalize in in into whenever yourself kind benefits they question. kind not From sales setup fashion of a to a dynamic large have them the you macro can that good that to interested to they’re smaller any are the gives total to, now nimble able over this going the I’m this this Okay, very players you as guys – to and great. be market, and me Obviously them be transfer to market able setup in my dynamic you the strategic in as

Mark Gorder

that’s of to emerging that I been to don’t and drive OTC creating this Well as strategy care. in sufficient ourselves has a – growth market of think We and legislation in in question, good position our the itself an ecosystem the market. is

found anticipate have not and a wear significant how only presence that addition care. but exists care to presence device getting care to customer hearing learning we accept We and that strong follow-up have counter people have assistance it, element and a And to that hearing the over in devices. not use to the you to customer only fitting providing

very say call it between advantage competitive start and position in the other people between that the creating the the finish. should goals, end our going unregulated this to on as of traditional the ecosystem those quasi the And this to in think or that – which space and the the we technology a are to see we So building who in two be care model more end ecosystem an to gives patient unregulated building with model high is the coming from segments. a through bricks standard, managing space. which a – from carefully we’re using traditional the is think that oligopoly is of And hearable audiologist. an over they ourselves us segment really goal mortar position we And care

Andrew D'Silva

it. One sorry. question, more Got

fairly barriers are for will companies for side, difficult them you’re it that to perhaps there now are seeing changing market expected to enter any that sometime more flip the soon? tech regulations the consumer On the make that be

Mark Gorder

standards. written Well, submittal the still for regulation FDA manufacturing and be an the will FDA meeting will FDA it’s – an requirement have when the,

medically have to going sell them. expertise. up care manufacturing and consumer they that take So that’s they’re facilities the If devices, people only traditionally addition, but put you’re don’t these to to to do will electronics audiological that to couldn’t we have have to be going the people devices certified that, And they’re not they that FDA ecosystem have wear step what going in initially call – of provide to the not in but keep and expertise get to build certified. to

the realm. medical those that They’re consumer be companies. will into there stepping barriers So in we electronics for a think

Andrew D'Silva

Okay.

Mark Gorder

we are Now, be many of care them like that think is interested going – there are still in this customer critical. doing some but Amazon, that to

Andrew D'Silva

That’s very interesting.

Okay, well thank you very much. Good luck going forward.

Mark Gorder

Thank you.

Operator

hear We’ll ahead. Ryan Please Dick from [Operator Instructions] next with Dougherty. go

Dick Ryan

on commentary there Puerto guys of with Congratulations business? quarter. kind strong that Mark, do the anything you. the with I’m Say Thank impacts operations the you and but nothing side Rican wondering has if their to Medtronic, a their hurricanes CGM on the of issues capacity

Scott Longval

but the out as had believe they really or from impacted We real they facilities just by seeing a put on last means that, But Scott. comment publically it can’t out to waiting is Really piece we’re this hurricane were of communicating we month them. by to and their up on, that information Dick, can’t on them. I came we’re was October. that what and time comment and really on us well getting and running the early kind them

Mark Gorder

they may not in issues of anticipate growth or into XXXX the we Dick, any year-over-year we Rico. strong in that built spite the Puerto However, have press guidance short-term in that in release, may

on impact us. major no anticipate we So

Dick Ryan

of you Mark, the units from coming too the And of through? is of Okay. the you XX% a IntriCon’s, devices sense to were early give digital HHE an mentioned – it can success

Mark Gorder

little too probably It’s a a early. – little

and we’re digital a adapting that. had should we to all, enough We’ve the changes. difficulties I getting give year the there this certainly few on would sense first of by you how in having data and we’re is impact. But positive making how channel quarter do analog that a learning everybody on of have some that of initially sold do be next to train of we’re to anticipate a that right quickly devices going. but during First should to IntriCon we down from it sense those the settings transition the new into very

Dick Ryan

Okay. said clinics. the making And side, you’re progress NHS you on the on

can’t I Any of hoping by number, monthly I ramp on the to think on get, November that the thousands current last October, thoughts call basis. remember something and do were end you a or on NHS the the opportunity?

Mark Gorder

progress the we’re decent make Well, others. moving with as several clinics starting thought to did along quickly not we from one we’re but of as a already order have and

So, even is to and tough largest expect slow are feel we make the got out so progress but we to be though we a to or making continue we hearing aid this it global purchase take progress. single had we to the up, a in market, still there it’s and

Dick Ryan

don’t Okay. depreciation, comp, I I have saw the Scott, you based numbers. amortization stock the do think

Scott Longval

amortization comp Stock was based was $XXX,XXX depreciation, and $XXX,XXX.

Dick Ryan

Great. What quarter? was Medtronic in the

Scott Longval

quarter in the revenue Medtronic $XX.X was million.

Dick Ryan

Thank great. Okay, you.

Scott Longval

Thanks.

Mark Gorder

Thanks Dick.

Operator

[Operator Instructions] Haimovitch go Thank Larry go We’ll next ahead. HMTC. Please with to you.

Larry Haimovitch

and afternoon Good Mark. Scott

Mark Gorder

Hey Larry.

Larry Haimovitch

significantly gross very was Is percentage? terms the you’ve a in quarter had beat of all ever good margin our this obviously quarter. The gross up of Congratulations, margin estimates. best

Mark Gorder

I’ve been XX it for here Since is. years,

Larry Haimovitch

Okay.

color didn’t a gross little know drove little Obviously You Could go about the that on we margin you it a story? the talk into, Scott, margins. more give on that, was much that’s volume what us all the detail helps easy. margins, call little gross gross more

Scott Longval

when margins those are we these XX top just had seeing Larry range. coming largely But margins express volume. Sure, needed gross hearing and quite from we’ve of margins greater greater what in in that, seeing that also through we we’re business, is because plus been to on capacity. And health low you’re volume facilities our our were fill for the talking up time some excess about even XXs this the the

revenue are some of we a margin. up becomes grow So to that overall business continues going the the to make expansion on piece larger and get

those two So driving really margin quarter. this are the to components big

Larry Haimovitch

grow, as to expect further as expand? – should margins to gross continue Scott sale we was

Scott Longval

Yes.

Larry Haimovitch

where reasonable – you think could do sense, think – you is Where can get… in, you limit meaning the where would is upper you

Scott Longval

our say current get that XXs. today, that would have I today can have footprint we we the business upper into we eventually in the the with think makeup and facility we

Larry Haimovitch

XXs, Upper okay.

Scott Longval

margin. gross For

Larry Haimovitch

some on statement the leverage income have would That really [inaudible]. nice

Scott Longval

Correct.

Larry Haimovitch

we raising you guys do to money, this Last didn’t you talked wanted think call said it at about point. you

up move in for move Do provided you’re to without would stock point interest I this for still anticipate more continue run fourth offering money? in is may or feel all price not you the like business the XXXX. you think quarter strong anticipation at well we and your needing guidance to raise that will the best better tomorrow and looking you very a either that can you’re of an up just stock feel

Mark Gorder

I accelerate alternatives past about we we’re XX think I as in And point that we’re, next feel always be But what a partner [inaudible] opportunities position to good that we’re some and to Larry what would across you can our the we’re health depend to shape, at doing. do would good short-term, said here whatever be. our strategic over would short-term in say the come in we’ve at calls hearing in branding six in business. feel months. we’ll help that it would us we growth emerging on see, pretty approach we’re best the that looking all see still But in in

Larry Haimovitch

but a duck the hunter, very Minnesota And Thanks. there thing are the hunters I’m have been duck which cracking, I hunt, up if never ducks to the I’ve duck very, understand not them. thoughtful feed is, Mark, to

Mark Gorder

HHE, about spend at money advertising drive feel of kind the that’s know we if what at that continue We HHE. more we’ll to revenue. Well, advertising in we

Larry Haimovitch

that on Thanks you side. great performance. leave [inaudible] I’ll again for Okay,

Scott Longval

Larry. you Thank

Operator

take Please We’ll ahead. Thank question from next our George go [inaudible]. you.

Unidentified Participant

thanks my Hi, questions. for taking

to eco business years kind over you next hearing then business. I five last value forward I’m partner. and question of to First caller the talked model the on the one to the model what going into like. of means, I in happens how kind and on a branding would I look that like ahead what understand I’m that that aid the look business not facilities would feather your if – understanding understand fully current years how would model what out that and what sure trying I’m looks the this that

Mark Gorder

can by of break the XX% market HHE huge over just just total is maybe the parts. I we next driving in we next our untapped about or estimate and model, years, two continuing a into the simply few that growth in with very traction HHE, the continuing care Well, short-term, we anticipate gain to the is on U.S. there continue a few strong our of market work advertising, underserved – years. to that lot ecosystem The drive which of there hearing health unserved. to And build

that, got to doing, In demonstrated point, of what addition model some at we’ve the sense we’re we’re anticipating level. to makes be a can that a accelerate it that that scale much to what taken higher we’ve

So but to doing, familiar hearing us. be doing gone than they’ve manufacture, Warby exact you that be consumer elderly treating anticipated different at that to with next will the in level. with Parker expand going the experience be is in for may that the point model of somebody with with some opportunity our have had where direct Parker the or At would an what point who be of scale helpful example, model working companies to it nature patients like there eyeglasses. is Warby we to The

bricks and in service also get So, approach. they’ve element seen direct-to-consumer to people be direct-to-consumer in have to a where Parker we’ve where Warby direct we adding mortar And element we watching that started a segwayed care that may they service call but customer online out places required addition into prior or There all go mail there strong that that the that’s here. as but think mentioned model many a is to, service the can don’t they’ve centers we’re I in down that but not several going some got kind know total of one do I’m three it. something of talking required areas of the a years, in the to to maybe kind around next a toward that’s now take five years the on to country, in looked that This road. is people think if my I six how that you

Unidentified Participant

in guidance, medical or mostly side then your – this what’s HHE growth by ’XX? half or are So, your from and and in you with mostly half the XXXX coming growth is driven for

Mark Gorder

there’d component be but on a to also direct of it our partners huge XXXX, will HHE, the our all similar Medtronic very of and very contribution then It three be strong health and hearing label insurance from would side to those contribute model, private Medtronic.

So, be strong contributions from all of those.

Unidentified Participant

Okay. your And good the concerns, for then are eco balance cash the stay also to to cash minimum on the covenants debt, standing? what requirements in

Mark Gorder

for any relate a ratio have only leverage don’t ratio. in fixed We we charge And are and covenants that covenants. balance those the with minimum a have cash, well covenants we to

Unidentified Participant

Yeah, quarter balance the well I you, well cash thoughts stand, you’re profitable – anyway, safety investment sheet but, more my a the in have to good next. but on to it’d business and thank cash you. Okay. be forward see like Thank I and would for all to higher nice look more

Scott Longval

Thank you. Thank you, George.

Operator

Thank you. to our with go question Please Partners. ahead. We��ll from Billeadeau Scott Walrus go

Scott Billeadeau

on QX have of so or been did next call update have, the and that over to so kind little you ownership I so, earlier asked, – of impact you that – part couple me or missed say I have Scott? but Hi now of that have should impact went will wanted quarter. QX HHE full just you Can But of bit of questions the guys, a this. the my I may

Scott Longval

Sure.

hearing impact closing be that will transaction express this we of Scott, in the health on quarter, happen quarter. will in fourth the So so

Scott Billeadeau

carry and burden the expense full Okay, you’ll then then…

Scott Longval

Right.

Scott Billeadeau

that did HHE, that, or to okay. for something was $X.XX hear hearing say I different? And be if was was …of about did I – you going you you something think mentioned QX I

Scott Longval

guess I means $X.XX quarter. $X.XX fourth and it Well the in

Scott Billeadeau

leveraged, service as another need will going and the how And there to big the you $X.XX be – audiologist. a that still your a counter, need of even then about $X.XX on you’re an great. model or picture builds this there you ecosystem, it’s kind will be strategize were – will the kind question, because okay, over though audio an of

Mark Gorder

you and use with Act fit over the the need OTC counter new Scott, the don’t hearing professional of to legislation, aid. to XXXX, a

So direct-to-consumer using dispensing. the would the categories professional that, that what anticipate would in the case we hearing of a two the fitting One is would about not we a model would be is model be could and have anticipate devices OTC you what we’re of and need the software, traditional OTC, other we be you as would aids that consumer In dispensing. device that a there dispensing. of would implementing that on we are excited type need already or self home the once would professional professional aids, put the the you’re technology in of so their involved. in still traditional need the other in location the convenience themselves fit the yet the of we the case use this without technology but, necessarily market hearing In be not remote determined of that professional a depending we place, we’ll having but traditional

Scott Billeadeau

or like center, want whether from type they you from perspective, Okay. perspective good but having or of outcomes you’ve been say I could, – just a some service it’s… someone a

Mark Gorder

yes. Yes,

Scott Billeadeau

see – providing build …Warby providing talking could – service… or were that model on someone can have you business about Parker I that a

Mark Gorder

And you were correct Scott…

Scott Billeadeau

is to and – …you different different that’s know, a I a having without having doctor could go very that a to right, model it, built there. without there be a get do to audiology, mean be

Mark Gorder

cases would and be our providing – or the both would coming in through traditional OTC strong we I aid case either model, the and whether hearing HHE care. be Yeah, customer it in

Scott Billeadeau

All great. that I I all that’s right, Yeah, think got. Thanks guys.

Scott Longval

Thanks, Scott.

Mark Gorder

Scott. Thanks,

Operator

[inaudible]. go Thank Please come will you. ahead. next question And from our

Unidentified Participant

and Scott. Mark afternoon Good

Mark Gorder

Beth. Hi

Scott Longval

Beth. Hi

Unidentified Participant

version. piloting of about to technology little be had of ready going question you you in in I then commercialized? and talked more self it’s a bit think terms do a pilots the the you to and U.S. Can fitting say when the cloud-based be terms

Mark Gorder

be progress. efficient going Soundperience it local in considered sure we in decided that a start two to easier the was a to What manner have it we we was the that to Well, that wanted using through Germany one the he the how would to were we in in it has a Germany because there and over we a thought in and in visits we’re making at goes make invented very this good with because main U.S., technology passed gentlemen on, that the debug is lot still is, Congress trade through been to we initiatives to so of progress show He use there, out technology in there. Germany there it is get and And professional both Signison the created we in is pilot actually he German Signison. doing you technology. good just still involved it, the use in because called not yet progress the Aid Europe And handholding a shops he U.S., and people is fitting but regulation the the take has Hearing Germany market, and – does in it figure made and in to need shops. putting European so

need the can OTC audiologist don’t we a then audiologist the piloting passed, under call Illinois it’s which what dispenser a this way health express, we the in in So there by use audiologists in supervision hearing technology dispenser. it outlet, we’re and we the is of dispensers licensed we’re is using doing our a we process. a legislation staffed Once fitting through where U.S., or – has the licensed a DeKalb, HHP or we’re it oversee professional and

debugging professional. a technology still with the licensed right today oversight the we’re So over

Unidentified Participant

Great.

just And and to hearing we spoken this need it’s walk this, a works of suppose nine about I forward get months and fast to through now to aids? know for Can how let’s let’s aids hearing you let’s you, from and is I able us then pair passed but suppose and legislation consumer, get – the a so you’re so technology can OTC.

Mark Gorder

Well, iPad low aids energy patient first Bluetooth intend through with hearing generated the it there’ll questionnaire and – to out we through this the videos also an go would kind down and as as we And best would you with and it a wirelessly your materials tech have the iPad were questionnaire we a in device walking aids. with would your the of is listening answered and would launch a then sit in fit for would fit and the hit screen on you that and that – the need you to an the the connection. based dials ones produce to be the how iPad, actually are elderly you would be but loss And The that as would iPad. you And you estimation along you your savvy. result. interface entire manipulate simply iPad hearing you’re when training tap sounds your done initial send process, you sequence well you the here way prescription would the from on the hearing gives to get would going self manipulated through

only iPad would more So work and then that’s ages passes OTC could the as this aids. and But way this the the XX assist hearing FDA devices XX, probably process. patients within training between – send the FTC designated category the tech would through happen would walk legislation zero the on initially to the loss we an savvy, OTC likely in them by as once hearing be them and of

Unidentified Participant

a send aids, hope that aid they an the that? App like is an with the maybe or could out tap hearing that don’t you iPad then something – to have And on hearing eventually

Mark Gorder

Well, we many almost simple. variables, the App use. to someone’s too – that’s here And is impossible the you’ve be allow out, be home a to with into got to there’d but it on elderly people know your system it if access has that that becomes easy problem standardizing an for Yeah. figure you

And so all relative. savvy tech is

Unidentified Participant

it. Got

Mark Gorder

be it’s figure combination the what is going technology right and this of challenge used. pilot and allow to be for out to simplicity us to So to effectively a

Unidentified Participant

Yeah, Thank okay, that helpful. is very, very much. very you

Mark Gorder

You’re welcome Beth.

Operator

That you. conclude question-and-answer Thank session for will today. our

to I over For like closing the would Mark CEO. Gorder, to remarks, conference turn

Mark Gorder

excited the to our and like with drive great thank in our We’ve that I’m been direction we’re of and a I’d again you both health day growth In Well, hearing closing, headed. to position questions the for never better value timeout taking the in to join all your medical reiterate call. business.

again. is sales milestones, the to driving positioning meeting with long-term space, value business additionally the continue driving hearing medical with gain and you business critical Thank and tremendous health success. for prospects we momentum Our

Operator

today’s And conference. conclude for joining. Thank will now That disconnect. you all you may

Intricon (IIN) 6 Nov 172017 Q3 Earnings call transcript