Hearing solutions specialist Nuheara Limited (ASX: NUH) has signed an agreement to manufacture HP branded products for American multinational information technology company HP Inc.
The Hardware Product Purchase Agreement has a contracted initial term of three years with automatic renewals for successive one-year periods. This umbrella Supply Agreement is designed to manage the design, manufacture, and supply of multiple products throughout the life of the contract.
The first Nuheara manufactured product to be supplied under the Agreement, is a HP branded True Wireless Earbud with charging case. Utilising Nuheara owned and developed IP, this Product is designed as a premium, compact audio earbud that will enhance the user’s ability to be productive, provide a personalised experience and can be used comfortably in dynamic and ever-changing physical environments. The Product will also carry a Nuheara co-brand.
The Product, which was developed under the previously announced $3.7 million Scope of Works agreements, is on schedule to commence mass shipment to HP in late Q3 2021FY (Jan-Mar 21). Nuheara has already manufactured and supplied HP the validation units of the Product.
The umbrella Agreement has no minimum or maximum contract value. However, post the Product launch, HP will provide Nuheara with manufacturing volumes. Nuheara will then keep the market informed through its quarterly activities and cashflow reports.
We are delighted to extend our partnership with HP to a long-term supply agreement. This agreement is another pillar in Nuheara’s diversification of revenue streams, building on our growing Direct to Consumer sales with OEM partnerships. With an embedded strategic partner the size of HP, it provides the potential of significant upside to our global reach and scale,” Nuheara CEO Justin Miller said.
“It’s a collaboration that has worked very well to date, provides significant commercial advantages to both parties, and I’m particularly pleased that the final products will carry a Nuheara co-brand in recognition of this partnership.
The ongoing collaboration in developing a technology roadmap and the subsequent potential for further products is incredibly rewarding for an Australian technology company, which has been recently recognised by TIME magazine as a creator of one of the best inventions of 2020.”
