good write up ! They got lucky around 2010 when their sale of their hearing aid division to Sonova was blocked. They were therefore forced to skip a generation of product which oddly materially benefitted them as they became the leader in tech a couple of years later. They then hit this long term purple patch where they could do no wrong however eventually everyone caught up, the management may over invested during Covid expecting the bubble to continue, product got stuck in the supply chain, margins fell, revenues fell, then they did this Steelseries acquisition & leveraged just at the time when investors want to see deleveraging. Their DSIs & inventory margin are terrible which is a major worry for H1 23. I own a pair of Jabra 75Ts, very good but are the newer versions eg 85T worth paying double for ?? Once the inventory is lower this could be an excellent turnaround but for now its high risk.
good write up ! They got lucky around 2010 when their sale of their hearing aid division to Sonova was blocked. They were therefore forced to skip a generation of product which oddly materially benefitted them as they became the leader in tech a couple of years later. They then hit this long term purple patch where they could do no wrong however eventually everyone caught up, the management may over invested during Covid expecting the bubble to continue, product got stuck in the supply chain, margins fell, revenues fell, then they did this Steelseries acquisition & leveraged just at the time when investors want to see deleveraging. Their DSIs & inventory margin are terrible which is a major worry for H1 23. I own a pair of Jabra 75Ts, very good but are the newer versions eg 85T worth paying double for ?? Once the inventory is lower this could be an excellent turnaround but for now its high risk.