Frequently asked questions

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.

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.

When can one expect major revenue figures from Intercom sales?

In the first quarter 2020 a first delivery of the Intercom system was made to a defense force in Europe. INVISIO also received a small order from a specialist unit in Europe during the period.

Sales efforts have gradually intensified, and the solution has generated great interest at several trade exhibitions.

In the first half of 2020 the objective is to achieve more customer tests, but since these as a rule take a long time, we do not expect to receive orders until late in the second half of 2020, at the earliest. 

We are convinced that the Intercom system in the long term will develop into a broader product portfolio and make a substantial contribution to the company’s continued growth.

Where will the future growth come from?

INVISIO has five strategies for continued growth with good profitability:

  • Increase market share in existing markets: Apart from winning new procurement contracts, the company aims to increase its sales in the context of agreements already signed.
  • Broaden the product portfolio through innovation: Continually broaden the portfolio of user-friendly, flexible and cost-effective products.
  • Address new user groups: Increase the number of user groups with a similar need to communicate in noisy and challenging environments.
  • Expand to new geographies: Asia, the Middle East and South America will play a growing role for INVISIO.
  • Sustainable and  cost-effective operations: Focusing on costs and sustainability internally and for manufacture of the company’s products.

Gross margin and the main drivers

The main drivers for the gross margin are the proportion of direct sales versus via distribution partners and the product mix during the reporting period. Third party products tend to have a negative effect on the gross margin. 

The gross margin level has increased over the last years as a consequence of setting up our own sales organizations in the USA, France and Italy as well as  higher volumes.

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?

INVISIO safeguards its competitiveness by focusing on R&D as well as marketing and sales. 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.

Why is the order book at lower levels than in previous years?

The simple answer is that we deliver faster today than before. This is possible  as we have a more efficient supply chain combined with working more proactively in  production.

What drives your market

One of the market drivers is the general trend among defense and security forces throughout the world to modernize their communication systems. This means that the number of potential users is continually growing as more soldiers and police officers are provided with radio solutions.

Another driver is the growing awareness of the effect and high cost of hearing loss on individuals and society. 

While the percentage of radio users and the need for effective hearing protection is growing, INVISIO is driving market growth by developing communication solutions that are gradually raising the industry’s requirements regarding performance, functionality and user experience.

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.

Is INVISIO a defense company?

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.