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(Alliance News) - Cap-XX Ltd on Friday said four-month product revenue has risen on-year, noting an increase in interest for its products in the US, Europe and South Africa.
In the four months to the end of October, the Sydney-based supercapacitor and energy management system manufacturer said product revenue was AUD1.5 million, or USD900,000, rising 35% from AUD1.1 million a year earlier.
Cap-XX said October is "typically one of the highest revenue months" for the financial year and this revenue result is "an early indicator that the overstocking and supply chain issues that were evident during FY2023 are showing signs of recovery".
Preliminary October product revenue was AUD600,000, representing over a third of the above four-month product revenue figure.
In orders, Cap-XX said its sales priorities remain focused on prismatic electric double layer capacitor and cylindrical 'can' business, followed by customer module solutions.
"The company is seeing an increase in activity and interest in Cap-XX's products from the USA, Europe, India as well as South Africa and this is evidenced by a marked increase in the request for samples across the product range, especially in Europe and the USA. Activities in Asia remain subdued due to the economic situation post Covid," the company said.
Cap-XX said the current order backlog is USD1.2 million and order intake is "supportive of a further improvement in revenues".
"Enquiries and orders from Europe and the USA are higher, but we are experiencing some slower order intake from China and India, primarily for the cylindrical 'can' products where the overstocking position of many customers/distributors has not yet fully worked through," the company said.
In new product development, Cap-XX said it continues to advance new products such as DMH, 3V and SMD.
It said the DMH product samples are on track for delivery by the end of the year, with commercial production expected to commence in early 2024. First orders are already in hand, Cap-XX said, with several other customers evaluating the product.
Cap-XX said the 3V product continues to be evaluated by "several potential large volume" customers and it continue to expects design wins, with initial orders expected in the first half of 2024.
The cylindrical SMD device is continuing through development trials, Cap-XX said, anticipating design wins through the remainder of 2023/24, with full commercial production scheduled for 2024/25.
Looking ahead, Cap-XX said it is reviewing its current sales project pipeline, including feasibility studies and timelines.
"We expect to see the new distribution and sales strategy begin to demonstrate positive results in the coming months. We are seeing product revenues improving and, barring a general economic downturn, we expect this to continue," the company said.
"Finally, the company is keenly looking forward to the initial revenues from new products in which the company has made significant investments over recent years."
Shares in Cap-XX were up 6.5% to 0.93 pence each in London on Friday morning.
By Greg Rosenvinge, Alliance News senior reporter
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