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It looks like QMC has produced a prototype it is using for demonstration purposes, something that NANO has done on a number of occasions already, so I don’t think this news suggests QMC is further advanced, unless the technique for preventing contamination without a barrier is superior to NANO’s? We know NANO has been working on similar solutions.

What neither has yet achieved is to put CFQD in to volume production with an OEM. Before that happens QD performance over many 1000’s of hours needs to be up to the mark, as do production costs.

Wish I knew where NANO is by the above measures.

The use of “partner to commercialize“ might suggest they still have some way to go before a viable product is available? And then there is the ability to produce in sufficient volume. Avoidance of need for a barrier is interesting and suggests a coating for each dot?

An honest and very true comment re timing of purchases Feeks.

That is certainly a plausible interpretation of the schematic Mars but the schematic itself paints quite a ‘fuzzy’ picture of the supply chain, and understandably so. That makes it difficult for mere shareholders to know what their funds are supporting. Let’s hope your take turns out to be correct and Display is resurrected.

There would no longer be shame in buying a Samsung or two :)

Anyone long on NANO (including me) must surely be hoping no further funds are required but it remains an 'unknown'. ME stated during the Interim presentation they do not know when (presumably also if) the American partner will place an order, so more funding could be required?

There are certainly encouraging signs that NANO may be on track, but we cannot know without either Inside or Privileged information from the US Partner, neither of which I hold.

What I can say with certainty is that nearly 5 years ago I felt guilty buying a TV (Samsung) because I was unable to find any that used NANO CF dots. Today, it stopped working (thanks are due to John Lewis and a 5 year guarantee) and if it needs replacement I am still unable to obtain one with NANO CFQD.

Having both a long position in NANO and also some in Qualcomm, the latter's out of court settlement with Apple last week was of interest.

Press coverage states that Apple has in recent years switched to Intel as the supplier of chips for many i phones. Royalties from Apple and suppliers was withheld, and apparently it suggested Qualcomm’s technology was no good. Privately Apple hardware executives are reported to have described Qualcomm tech as “the best”.

A director of the Centre for the Protection of Intellectual Property said the case “...potentially reveals that Apple was engaging in a bad faith argument both in front of antitrust enforcers as well as the legal courts…”

Qualcomm holds the strongest patent portfolio for wireless standards, yet it was apparently forced to lay off 1200 staff and lost revenue, whilst legal action played out - that must have hurt.

At settlement, Qualcomm’s share price immediately jumped 30%. Qualcomm has emerged in a strong position but in my opinion the outcome does not reflect well on Apple.

Of course, NANO has no public links to Apple. We would be delighted if it had but we should be mindful of the Qualcomm case/experience.

https://www.washingtonpost.com/technology/2019/04/19/apple-said-qualcomms-tech-was-no-good-private-communications-it-was-best/?noredirect=on&utm_term=.9b3824cadcd0

Really positive II interest, which can only help. LO increasing its stake marginally and Oddo taking 3.16% is exactly what NANO needs. There must either have been significant share accumulation by MM, or perhaps private sales by a few. Our time may be approaching?

Yes 125k at over 47p each is the largest exec/non exec commitment for some time and assuming it was a straightforward purchase made with own funds is a real vote of confidence, which should reflect well in the SP.

Perhaps so but that is what ME said. We can only form a judgement and take/retain a position (or not). I did feel ME was more enthused than in some past interviews, so for anyone who has not done so it might be an idea to listen to the podcast to see if they agree. If there were a new film based deal announced in the near future (as some suggest) that would reinforce the story and belief in it.

To be fair to ME he said their display QD were the best available and better than Samsung/Hansol. And also working hand in glove with DuPont, so you would have to assume it puts NANO near the front on QD and QD/OLED hybrid?

Mr Market has not received today’s Announcement well and we are down nearly 4%. There is considerable risk in the technological challenge of delivering nano particles to specification and also having one customer deliver 90% of income. However, interesting to see the range of views from the same news. My take is that NANO is now in a better financiall position than it was at end of last FY. Still very much a binary bet but I have more confidence now that it will fall in favour of the investors.

And the rest...

ME says NANO dots are now better than Samsung’s own dots (Hansol).

Will end year with £6m cash but with £5.5 m costs does that mean we need an order within approx. 6 months of year end?
BT stated that NANO is actively seeking new customers, but is aware that cash would burn quickly.
NANO is not restricted by the US relationship, except in directly competing products.
BT suggested the Infra red sensor product would not be a retail product (this and a later comment from ME suggest military applications?).

Is NANO expecting other contracts?
ME Indicated that military and LIDAR are potential applications. LIDAR often fooled by sunlight and here NANO tuning of QD can help to mitigate this difficulty and have lower power consumption.

Will NANO be countering IP infringement?
ME Yes – it does today and is I discussion with one or two large firms in this connection.

Plessey
ME NANO is working on a blue display with Plessey, overlayed with QD. Product is being developed and targeting smaller displays such as watches.

RGB Mini LED backlighting – how does this impact QD?
ME Yes it has potential to disrupt but is in an early stage of development but has energy efficiency issues. Very bright display but costs a factor.

Snippets from this morning’s presentation – a much more positive outlook that previous results it would seem but Display is still behind the curve, at least for now.

US customer
Moving forward positively with US customer, all milestones achieved and customer “happy”
Display continues to make progress but has taken much longer than anticipated to come through.
Doubled ‘footprint’ at Runcorn and currently validating performance.
Red and Green QD performance improving rapidly.
£3.2 m made for period (same as total for last year).
£8.2 m of orders on book – never been in this position before.
Major application for US customer is in the infra-red sector, where the QD absorbs light, and applied in sensors. Military uses also referenced.

Need to have fully commissioned the product by year end and the final application will involve coating NANO product on to something else (is this not 6 months later than expected?) .
Focus on validating the Manchester product operates to specification.
Second agreement with the US customer (new generation materials ) continues.

Display
Significant focus on improving the quality of QD and now world beating
ME believes NANO dots are “way ahead” of what competitors can produce.
Relationship with DuPont, stronger than ever and working hand in glove.
Runcorn has 1000kg capacity per year for display QD.
Merck sources all dots from Runcorn and working on the next generation of printed displays.
Now working with a number of firms such as Wah Hong which is creating resin based products for use in film.
Use of QD and OLED together is becoming more widespread.

Other areas
Beginning to achieve traction e.g. Care ware.
Life Sciences is the furthest out, although favourable results from toxicology tests and working with large Pharma’s .

Finance Review (Brian Tenner)
Revenue (billings) 16 times higher than last year and expects this to continue for the balance of year.
All revenue for this calendar year are not contingent on development, so close to guaranteed income following delivery.
Cost base remains £2.5 m lower than the peak in FY 2016.
Retraining Runcorn staff presently for new tasks – keeps costs controlled.
Expect neutral cashflow throughout FY 2019.
90% of income for next two years will come from the US customer.
Costs are up due to staffing but now stabilised (around 92).
Expect depreciation on capital at one £0.5m pa.
Cap ex should reduce from £2.3m pa and go down in a year or two to around £1m pa.
If the business can achieve volume numbers should look very attractive.
Expect Cash position to be neutral in Dec 2019, so no erosion of cash.

ME keen to point out that NANOs ability to deliver quality QD to a price is a skill that NANO is a world leader in and pleased with progress.

Analysts
What are the risks?
ME Always risk but plant operating and working – emphasised that maintaining quality is a major factor.
ME says NANO dots are now better than Samsung’s own do

I agree Troublesome. Wicky was conveying an opinion, which most of us have understood well enough. ME and the rest of Board would no doubt also be delighted if NANO was acknowledged by the market as a big fish in any pond, but that will require more income and later profitability too. ND agreements and radio silence do not help the current share price but NANO must be producing shed loads of dots in Runcorn by now, even if only for stress testing. Unless that work comes off the rails (unlikely), it should not be too many months before there is tangible news of nano particle income. I am not counting on much from Display/Monitor but would be very pleased to be proved wrong on that score.

Max. What are you saying? And why do you consider is Wicky’s comment “trivial” yet others not?

An who has said that?

Well, if NANO's fortune is linked to WH, we should see a pleasant surprise in SP if it became clear that volume commercialisation had been attained. Hope it happens but its been a seven year drought thus far.

Always nice to win an award but is the IR award for the new-look annual report, or communications in general?

Likewise, a long term hold for me, and I shall sell when I believe most potential applications have been realised and their value is in the price - most likely another 7 years of holding and lots more ups and down.