Pointing to very significant economies to be allowed by this break, Siemens Hearing Aid division is poised to make significant changes, as it faces a very changed hearing aid marketplace and consumer, leaving it in next to last place in a recent dispense survey.
Siemens hearing has literally set the standards in several areas of hearing aid technology, and manufacturing accuracy.
Yet despite their technological leadership, this division seemed to continuously misstep in the marketplace in recent years. The results being a slip to fifth place, or next to last showing in the recently released dispenser survey, as published in the April issue of “The Hearing Review” ahead of only Widex in their overall market penetration.
However, this spin off may be exactly what this company needs. They currently have a young, energetic, highly intelligent, and engaged President, and CEO B. Scott Davis. He brings a much needed passion to a company that consistently produces great, cutting edge hearing care products, but seemed to just as consistently trip over their own bureaucracy, and internal systems, rather than serving the mission of those on the dispensing end.
Whether Mr. Davis will remain after the IPO, or not, or whether he will be able to reshape the Siemens hearing delivery pipeline and, dispenser support system beyond their fifth place market penetration is at this point an open question.
However, having met Scott personally recently, as well as some of the other fine folks he’s surrounded himself with, I would not be selling this company short. Fact is, if Scott Davis is able to focus his passion, intellect, and team through this upcoming transition, if priced right, I’d rate their stock, and IPO, as a definite insiders buy.
Given the power to act independent of the overarching Siemens bureaucracy, I would expect that this company will begin to gain major ground in the marketplace, as they focus on innovating their internal, delivery, and dispenser support systems and bureaucracy with the same eye toward improvement, that they’ve become famous for in their engineering and equipment.