What is the fundamental value that INVISIO offers customers and society?
INVISIO creates a unique value for individuals and society by enabling communication in critical and noisy situations, which makes the user’s work environment safer and improves efficiency.
By protecting the hearing of users INVISIO prevents permanent hearing loss and related problems, which spares the individual great suffering and society high rehabilitation and compensation costs.
Why do order intake and sales fluctuate between quarters?
INVISIO’s market is characterized by large procurements at irregular intervals. Both order intake and sales can fluctuate substantially between quarters and the company’s development should therefore be evaluated in a longer time perspective than individual quarters.
In order to tackle the uneven order intake, INVISIO works closely with customers, which enables us to start production some time before the actual order is received. As a result, we can offer speedy delivery, which is highly appreciated among customers and constitutes a competitive advantage.
A clear trend, however, is that the company receives an increased share of medium-sized orders - a direct consequence of the broader product portfolio and an increasingly large customer base. In addition to increased sales, it also contributes to greater stability in order intake, which is positive.
Do you have seasonality in sales?
The past three years’ sales figures show that Q1 historically tends to be slightly weaker than the other quarters. Q2 and Q3 are slightly stronger and the strongest period of the year is Q4.
The seasonality is expected to decrease as INVISIO continous to broaden the product portfolio, customer base and geographical footprint.
Where will the future growth come from?
INVISIO has five strategies for continued growth with good profitability:
Gross margin and the main drivers
The key factors influencing the gross margin are the share of direct sales compared to sales through distribution partners, as well as the product mix during the reporting period.
The gross margin has increased in recent years, partly due to INVISIO establishing its own sales organizations in the USA, France, and Italy.
A broader product portfolio with several new products, which together form an ecosystem, has also contributed to a strengthened gross margin.
Additionally, increased total revenue has further reinforced the margin.
How can you manage production with a high volatility in order intake?
INVISIO tackles the volatility in the order intake by working closely with the customer and by contracting out manufacturing. A close relationship with customers gives INVISIO an insight into when a new order is likely to arrive, enabling an early start to production.
How can you scale up production?
Selected European producers are responsible for manufacture of the products on a contract basis.
Contracting out manufacturing gives INVISIO scalability and the ability to manage large variations in order volumes. Increased production volumes are not a challenge in the foreseeable future.
Why have inventory levels increased?
In 2018 we changed our policy for inventory levels. In order to gain a competitive advantage by offering our customers speedy delivery we increased the size of the inventory.
The inventory is composed only of standard products and extremely few products are scrapped.
Demand for INVISIO’s products is driven by several interacting factors. Structural demand is fueled by ongoing long-term digital modernization programs that are expanding the use of communication equipment. Additionally, an increasing number of soldiers are being equipped with personal radios.
Growing awareness of hearing loss and its impact on individuals and society is another key driver of demand.
Furthermore, more powerful weapon systems and the rising demand for military vehicles—many of which generate higher noise levels—are contributing to increased demand.
In 2022, the new and more uncertain geopolitical landscape, particularly in Europe, further strengthened long-term demand.
Who are your main competitors?
The personal system:
Apart from INVISIO there is a handful of other suppliers on the market, such as manufacturers of helmets offering an integrated communication solution and hearing protection in the form of muffs.
The Intercom system:
The competition for the Intercom system is limited in an initial phase of market penetration, as focus lies on offering the portable system to existing customers and there is no similar offer at present. At a later stage, when INVISIO addresses vehicle manufacturers and companies that equip military vehicles, competition is expected to increase, because similar solutions exist today. However, they are less flexible and more expensive than INVISIO’s system.
How does INVISIO monitor and uphold its code of conduct and anti-corruption policies?
The policies in this area are presented to all new employees as part of their introduction program.
Among our suppliers we ensure formally documented distribution of the Supplier Code of Conduct.
Among our partners we uphold the INVISIO Code of Conduct through their acceptance of it and through facility visits at selected critical suppliers.
INVISIO offers a safer work environment and hearing protection for user groups in situation critical environments, such as police officers and soldiers. Our products are not classified as war material, they are classified as a personal safety product.
What was the IT security incident you had in the UK 2024?
Racal Acoustics Ltd, INVISIO’s subsidiary in UK, suffered a cyber incident in May of last year which was understood to have been carried out by a criminal ransomware collective based internationally. A press release of this incident was published on our website in June 2024 and can be accessed here: 2024-06-24 Racal Acoustics Ltd (INVISIO’s UK subsidiary) - recent Cyber Incident INVISIO – Corporate.
The response to the attack was robust, with it: (i) engaging market leading third-party cyber security experts to assist its IT team in comprehensively addressing this matter, ensuring that the criminal group had no means of re-accessing its systems and further strengthening IT security; and (ii) engaging with law enforcement and relevant regulatory bodies in respect of the incident. As stated in the June 2024 publication, Racal’s systems were swiftly recovered from backups and operations continued with de minimis disruption.
Racal also conducted a detailed investigation (assisted by external cyber security experts) to determine the scope of the incident and the information that may have been impacted. This was a complex investigation which took a significant amount of time but has since been completed.
What data was involved?
It was determined that files containing the personal data of certain Racal employees (both current and former) / other persons that worked at the company (collectively referred to as “Racal Employees”), were accessed by the cyber criminals. Investigations indicate that the cyber-criminal group was attempting to secure commercially sensitive information in an effort to pressure Racal into making a ransom payment (the criminal group was unsuccessful in these endeavours).
We can also advise that Racal is not aware of any fraud (actual or attempted) arising from the incident. However, out of an abundance of caution, we have elected to post this information on our FAQs page, to supplement other substantive efforts that have been made to inform Racal Employees that: (i) their personal data may have been impacted (such information having generally been provided to Human Resources as part of their employment / work related engagement with Racal); and (ii) to offer them free ID / Credit monitoring support (should they wish to use these services) – further details of which are set out below.
What steps can Racal Employees take?
A list of simple steps that can be taken to guard against fraud and cybercrime are set out on the UK Police’s/Action Fraud’s website, which can be accessed via the following link https://www.actionfraud.police.uk/individual-protection.
We have also secured the services of Experian to provide identity, credit, and dark web monitoring services at no cost to impacted Racal Employees (as defined within the “What data was involved?” section) for 12 months.
Experian is one of the UK’s leading Credit Reference agencies specialising in risk mitigation and response,
Was my information involved? How do I take up the offer of Experian monitoring? What if I have other questions?
Racal considers the misuse of any impacted information to be unlikely, noting that the criminals were seemingly motivated by obtaining a ransom payment from Racal. However, if you are a Racal Employee (as defined within the “What data was involved?” section) and: (i) are concerned that your data may fall within the scope of this incident; (ii) wish to take up our offer of free Experian ID/credit monitoring; or (iii) have any other queries, you should not hesitate to contact Racal at ciqueries@racalacoustics.com.
Please rest assured that our response to this incident has been robust and diligent. However, we appreciate that incidents of this kind naturally give rise to concerns and we are here to answer any questions you might have and assist all Racal Employees in confidently moving past this incident.
