Every Touch Connects: AI-Powered Clarity with Sleek, Discreet DesignNEW YORK, Sept. 26, 2025 (GLOBE NEWSWIRE) -- Cearvol today unveiled Wave, its next-generation hearing solution. The device is now debuting on a crowdfunding platform, giving early supporters first access. With over 50 million Americans living with hearing loss and fewer than 20% using hearing aids, the demand for solutions that are both powerful and easy to use has never been greater. Wave is designed to close that gap, bringing professiona ...

Core Insights - Cearvol has launched a new hearing aid called Nano, designed to be compact and nearly invisible, addressing the discomfort associated with traditional bulky devices [1][14] - The company's mission focuses on blending smart technology with human-centered design to enhance accessibility and improve the quality of life for individuals with hearing loss [3][19] - Nano features user-friendly controls located on the charging case, allowing for easy adjustments without the need for fiddly buttons on the device itself [8][17] Product Features - Nano offers three tailored hearing levels for different degrees of hearing loss, with a maximum amplification of 30dB, ensuring a natural listening experience [11] - The device includes advanced noise reduction and feedback suppression technologies, making conversations clearer in various environments [11] - A quick 15-minute charge provides 3 hours of use, while a full charge lasts 17 hours, extendable to over 54 hours with the charging case [9] Market Positioning - Cearvol's Nano targets users who prefer a discreet and simple hearing solution, contrasting with its previously launched Wave Lite, which is more feature-rich and connected [18] - The company emphasizes the importance of user experience, aiming to restore not just sound but also confidence and connection for users [10][14] - As an FDA-registered over-the-counter hearing aid, Nano assures families of its safety and reliability, making it an appealing choice for first-time users [14]

Core Insights - The company has confirmed its financial guidance for 2025, narrowing organic revenue growth expectations to a range of -2% to +2% [8][12] - The Hearing division is expected to contribute organic revenue growth of 5% to 9%, but due to lower market growth assumptions, it is now anticipated to grow at the lower end of that range [5][4] - The Enterprise division is facing challenges due to market uncertainty, with expected organic revenue growth of -8% to 0% [6] - The Gaming division is also impacted by trade environment changes, with organic revenue growth now expected in the upper half of the range of -6% to +2% [7] Financial Performance - Group reported EBITA increased by 46% to DKK 546 million, with an EBITA margin of 13% [8] - Free cash flow excluding M&A was DKK 353 million, reflecting a positive earnings profile and working capital impact [8] - The Hearing division achieved 8% organic revenue growth, while the Enterprise division saw a decline of -7% [8][10] Market Conditions - The hearing aid market is projected to grow at 4-6% in volumes, driven by favorable demographic trends, but is expected to grow slower than its structural trend in 2025 [4] - The company is actively diversifying its manufacturing footprint and implementing price adjustments to mitigate impacts from the changing trade environment [6][9] - The overall impact of tariffs is expected to reduce the group EBITA margin by approximately -1% in 2025 [10]

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $132 million, at the high end of the guided range, with EPS of $0.18, also at the midpoint of guidance [11][19] - Gross margins for the MedTech and Specialty Audio segment were 48.7%, down 450 basis points year-over-year, primarily due to a supply agreement impacting margins [19] - Precision Devices segment revenues were $73 million, flat compared to Q4, with gross margins at 35.7%, unchanged from the previous year [13][20] Business Line Data and Key Metrics Changes - MedTech and Specialty Audio revenue was $60 million, slightly up year-over-year but seasonally down from Q4 [11][19] - Precision Devices segment saw a flat revenue performance, with production challenges in the specialty film line being addressed [13][20] - The company expects year-over-year revenue growth to accelerate in Q2 2025, driven by strong demand in MedTech and Specialty Audio [12][17] Market Data and Key Metrics Changes - The company estimates that less than 5% of revenue is subject to current tariffs, with less than 3% of cost of goods sold impacted [7][8] - Inventory levels at distributors have normalized to 3-3.5 months, indicating increased order activity [34][52] - The company is seeing strong bookings trends across most end markets, particularly in Precision Devices [15][52] Company Strategy and Development Direction - The company is focused on growth in 2025, with strong design wins and increasing backlog across its product portfolio [17] - There is an emphasis on exploring acquisition opportunities while maintaining manageable debt levels [16][22] - The upcoming Investor Day will detail future growth plans and competitive advantages [17][60] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the tariff environment but believes the company is well-positioned for growth despite potential impacts [5][10] - The outlook for the MedTech and defense sectors remains strong, with essential devices expected to maintain demand [32][33] - Management anticipates a stronger second half of 2025, driven by improved capacity utilization and demand recovery [41][42] Other Important Information - The company repurchased $5 million in shares and reduced debt by $15 million in Q1 2025 [16][22] - Capital spending is projected to be $7 million in Q2, with full-year capital spending expected to be 5% of revenues [24] Q&A Session Summary Question: Overall end market customer exposure and outlook - Management indicated no change in demand and higher expectations for Q2, particularly in essential devices like pacemakers and hearing aids [31][32] Question: Updates on the $75 million capacitor order - A substantial prepayment was received, indicating strong customer commitment with no expected delivery impacts [37] Question: Gross margin trajectory for Q2 and Q4 - Management expects significant sequential improvement in gross margins, projecting an exit range of 45% to 47% by year-end [40][44] Question: Potential for gaining market share from competitors - Management noted increased inquiries from customers considering switching suppliers due to tariff impacts, particularly in the industrial space [46][47] Question: Commentary on bookings and receivables - Bookings were strong, with inventory levels at distributors decreasing, indicating rising demand [52][56]