HearUSA (EAR) Jumps as Siemens' SEC Filing Addressed
Tweet
Share
E-mailGet Alerts EAR Hot Sheet
Join SI Premium – FREE
HearUSA Inc. (AMEX: EAR) shares are jumping higher today, following a 37.8% slide yesterday, as the company addressed a recent SEC filing made by Siemens Hearing Instruments.
CEO and Chair Stephen Hansbrough said, "We are also concerned that the statements made by Siemens in its Schedule 13D fail to provide all of the facts about our relationship with them and our position. We raised legitimate contract issues with our strategic partner concerning their approach to our commercial relationship in what we understood was a confidential discussion on December 22, 2010. In spite of our disagreement with their positions, we continued our attempts to resolve the commercial issues and we clearly advised Siemens of our commitment to meet our obligations to them...We expect to report a loss for the quarter and the year. We have taken appropriate actions to realign our cost structure with our anticipated cash flows. Average daily order dollars in the first quarter of 2011 are running approximately 13% ahead of the year-ago quarter. HearUSA is confident that with the actions it has taken it will return to profitability in 2011, and we remain committed to growing shareholder value."
From the filing, about the December 22, 2011, conversation: "Mr. Hansbrough requested that [Siemens] provide immediate financial assistance to [HearUSA], including by allowing the Issuer to defer payment of amounts due to [Siemens]. In response to Mr. Hansbrough’s request, [Siemens] agreed to provide a temporary deferral until the end of January 2011 of approximately $1 million of the $1.9 million in trade payables that had been due to [Siemens] at the end of December 2010."
Shares of EAR are 10.9% better this morning.
CEO and Chair Stephen Hansbrough said, "We are also concerned that the statements made by Siemens in its Schedule 13D fail to provide all of the facts about our relationship with them and our position. We raised legitimate contract issues with our strategic partner concerning their approach to our commercial relationship in what we understood was a confidential discussion on December 22, 2010. In spite of our disagreement with their positions, we continued our attempts to resolve the commercial issues and we clearly advised Siemens of our commitment to meet our obligations to them...We expect to report a loss for the quarter and the year. We have taken appropriate actions to realign our cost structure with our anticipated cash flows. Average daily order dollars in the first quarter of 2011 are running approximately 13% ahead of the year-ago quarter. HearUSA is confident that with the actions it has taken it will return to profitability in 2011, and we remain committed to growing shareholder value."
From the filing, about the December 22, 2011, conversation: "Mr. Hansbrough requested that [Siemens] provide immediate financial assistance to [HearUSA], including by allowing the Issuer to defer payment of amounts due to [Siemens]. In response to Mr. Hansbrough’s request, [Siemens] agreed to provide a temporary deferral until the end of January 2011 of approximately $1 million of the $1.9 million in trade payables that had been due to [Siemens] at the end of December 2010."
Shares of EAR are 10.9% better this morning.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Increasing unusual call option volume: ANNX MUU FHN STT KORU PSIX ATAI FRO BHVN BN CXW SBAC SECZ CSX RRC
- Instacart acquires Arpalus to boost shelf inventory accuracy
- Nasdaq moves to delist Empro Group amid SEC trading suspension
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
13DSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
