Last checked at 24 Mar 2014 07:00
24th March 2014
CAP-XX Limited
Interim Results for the half-year ended 31 December 2013
CAP-XX Limited, a world leader in the design and manufacture of revolutionary thin-form supercapacitors, which considerably extend the performance of batteries, announces its interim results for the half-year ended 31 December 2013.
Financial Highlights
· Product Revenue of A$ 2.2m is up 21% on the previous year. The increase is represented by a volume increase of 12%, average selling prices down by 4% and the strengthening USD contributed 13%
· Net Loss reduced to $1.2m (2012: A$1.4m) The year on year improvement is a result of the improvement in gross margin due to increased sales volumes, cost reductions, translation benefits from a stronger USD and the increase in the R&D tax rebate
· Cash reserves of A$2.7m at the period end (2012: A$2.9m) include receipt of a A$1.0m tax rebate from the Australian Taxation Office
Operational Highlights
· Prototypes of the surface mountable device (SMD) have been completed and have been provided to potential licencees
· Operational cost savings have reached 50% of plan and the cash burn continues to decrease
· Interest from the automotive market sector associated with the CAP-XX large supercapacitor offering continues to grow especially from the US, Europe and India
· Murata royalty revenue up 73% from a low base
· Additional sales personnel are in place to meet the increase in sales demand
Anthony Kongats, CEO of CAP-XX said:
"We are pleased with progress on our initiatives in the half-year, notably in the Automotive segment where our larger supercapacitors are becoming widely known amongst Tier-1 system suppliers in Europe, the US and India, with a licensing deal expected this year. Volumes of our small form supercapacitors are increasing from existing customers as well as early shipments on new design wins, and those of our manufacturing partner, Murata. Taken together with continued progress on cost down programmes, we are increasingly confident for the second half and beyond."
For further information contact:
CAP-XX Limited | ||
Anthony Kongats, Chief Executive Officer | +61 (0) 2 9428 0139 | |
Kreab Gavin Anderson & Company (Financial PR) | ||
Robert Speed | +44 (0) 20 7074 1800 | |
Cenkos Securities (Nominated Adviser and Broker) | ||
Stephen Keys/Camilla Hume (Corporate Finance) | +44 (0) 20 7397 1949 |
More information is available at www.cap-xx.com
Notes to Editors:
CAP-XX is a world leader in the design and manufacture of thin form prismatic supercapacitors and energy management systems, predominantly for portable or small scale electronic devices and automotive applications.
The unique feature of CAP-XX's supercapacitors is their ability to store high volumes of energy and output high power levels within a thin prismatic design. These attributes are critical for power-hungry electronic devices, including mobile phones and automotive applications.
Portable devices are one of the fastest growing segments of the electronics market, and provide the greatest opportunities for CAP-XX's products. CAP-XX's products are already an established enabling technology for the current generation of wireless and portable devices. Automotive applications are also growing rapidly especially for micro and mild hybrid vehicles incorporating Stop-Start; Enhanced Cold Cranking and Energy recapture through Regenerative Braking and Coasting.
Chairman's Review
Business overview
Good progress has been made on several key initiatives over the last six months:
· The financial performance has been ahead of forecast, with revenue up by 22%;
· Initial operational cost savings are beginning to flow and the cash burn is decreasing;
· Demand for the existing supercapacitor product range continues to increase, with booked orders and interest from new and emerging markets at historically higher levels;
· Automotive Tier 1 suppliers and OEM's are continuing to evaluate our automotive products and new interest has been secured from US, Europe and India; and
· Samples of the surface mountable device (SMD) have been completed and are available for testing for potential licensees.
Interest from the Automotive market segment in larger supercapacitors continues to progress, with many potential licensees undertaking testing to confirm product performance and conducting demonstrations with third parties. Discussions are continuing with a number of parties. The CAP-XX offering is becoming widely known within these markets and the Company continues to receive requests for meetings and demonstrations latterly from the US, Europe and India. The Board remain confident that at least one licensing deal will be in place by mid 2014.
The development cycle of the SMD has reached the stage whereby the Company has announced that prototypes of the new device are available for testing by potential licensees. Since this announcement in early January, expressions of interest have already been received from companies in Japan, Korea and the US. Face to face meetings are currently being scheduled in coming months. The benefit of SMD product to potential customers is:
- significantly lower manufacturing costs for suppliers in mass production;
- lower assembly costs for CAP-XX customers;
- excellent product performance from our proprietary technology.
Product sales revenue of US$2.0m (2012: US$1.9m) is up 8% over the previous year with volumes up 12%, whilst the pricing is down by 4%. The increase in volumes is primarily due to increase in existing customers' off-take as well as the early shipments of new design wins commencing. The appreciation of the USD over the past six months has also benefitted the sales revenue when translated to AUD. Total product revenue expressed in Australian Dollars is 22% higher than last year (FX impact being 13%). It is also pleasing to note the increase in the Murata royalty revenue (up 73%) even though the quantum remains modest. Given the increased demand especially from new and emerging markets, the Company's sales resources have been increased with the appointment of new Sales Manager in November. He is a Korean national with experience in passive component sales including supercapacitors, in Asia, North America and Europe. Given the current order book and the increase in lead activity, the 2nd half-year sales results should be at least on par with what was achieved in the first half-year.
The operating loss after tax recorded for the past six months was A$1.2M (2012: A$1.4M). The $0.2M improvement is a result of the improvement in gross margin due to increased sales volumes, translation benefits from a stronger USD and the increase in the R&D tax rebate. Operating expenses were in line with the previous year. The benefits from the operational costs initiatives that were announced previously are beginning to make a positive impact. Additional operational cost savings are anticipated to be delivered in the current six months. Both contract manufacturers are operating steadily and both plants are in discussion with CAP-XX management on increasing throughput, improving yield and lowering costs. Cash reserves as at the end of December 2013 were A$2.7m (2012: A$2.9M) which includes the receipt of the FY13 R&D tax rebate from the Australian Taxation Office (A$1.0M) in October 13.
The Board is pleased with the Company's progress on its key initiatives over the past six months and remain confident that additional good news will be able to report in the following six months.
Patrick Elliott
Chairman
24th March, 2014
CAP-XX Limited
Income statement - Unaudited
For the half-year ended 31 December 2013
Consolidated | |||
Half-year 2013 | Half-year 2012 | ||
Currency: Australian Dollars | $ | $ | |
Revenue from sale of goods and services | 2,222,376 | 1,823,391 | |
Cost of sale of goods and services | (1,654,152) | (1,310,313) | |
Gross margin (loss) on sale of goods and services | 568,224 | 513,078 | |
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Other revenue | 29,899 | 58,631 | |
Other income | 93,525 | 12,500 | |
General and administrative expenses | (1,138,007) | (1,154,516) | |
Process and engineering expenses | (221,569) | (228,183) | |
Selling and marketing expenses | (238,784) | (202,999) | |
Research and development expenses | (738,304) | (743,379) | |
Other expenses | 3,326 | (9,718) | |
(Loss) before income tax | (1,641,690) | (1,754,585) | |
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Income tax benefit/(expense) | 450,000 | 358,138 | |
Net (loss) for the half year | (1,191,690) | (1,396,447) | |
(Loss) attributable to members of CAP-XX Limited | (1,191,690) | (1,396,447) | |
Earnings (loss) per share attributable to the ordinary equity holders of the company | Cents | Cents | |
Basic earnings per share | (1.04) | (1.62) | |
Diluted earnings per share | (1.04) | (1.62) | |
CAP-XX Limited
Balance sheet - Unaudited
As at 31 December 2013
Consolidated |
| |||
31 December 2013 | 30 June 2013 | 31 December 2012 | ||
Currency: Australian Dollars | $ | $ | $ | |
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | 2,729,595 | 1,105,523 | 2,925,240 | |
Receivables | 567,514 | 488,528 | 470,075 | |
Inventories | 678,940 | 996,739 | 838,928 | |
Other | 586,096 | 1,075,415 | 490,850 | |
Total current assets | 4,562,145 | 3,666,205 | 4,725,093 | |
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Non-current assets |
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Property, plant and equipment | 394,116 | 501,968 | 465,726 | |
Other | 236,507 | 236,507 | 236,507 | |
Total non-current assets | 630,623 | 738,475 | 702,233 | |
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Total assets | 5,192,768 | 4,404,680 | 5,427,326 | |
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LIABILITIES |
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Current liabilities |
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Payables | 749,542 | 1,024,628 | 813,164 | |
Provisions | 707,714 | 800,644 | 664,771 | |
Progress payments - Sale of Plant | - | 193,579 | 580,737 | |
Total current liabilities | 1,457,256 | 2,018,851 | 2,058,672 | |
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Non-current liabilities |
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Provisions | 127,106 | 35,926 | 148,527 | |
Total non-current liabilities | 127,106 | 35,926 | 148,527 | |
Total liabilities | 1,584,362 | 2,054,777 | 2, 207,199 | |
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Net assets | 3,608,406 | 2,349,903 | 3,220,127 | |
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EQUITY |
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Contributed equity | 90,293,840 | 87,932,560 | 87,932,560 | |
Reserves | 3,550,337 | 3,461,424 | 3,446,337 | |
Accumulated losses | (90,235,771) | (89,044,081) | (88,158,770) | |
TOTAL EQUITY | 3,608,406 | 2,349,903 | 3,220,127 | |
CAP-XX Limited
Statements of changes in equity - Unaudited
For the half-year ended 31 December 2013
Consolidated | |||
Half-year 2013 | Half-year 2012 | ||
Currency: Australian Dollars | $ | $ | |
Total equity at the beginning of the half year | 2,349,903 | 4,474,388 | |
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| ||
Exchange differences on translation of foreign operations | (25,531) | 5,746 | |
Net (loss) recognised directly in equity | (25,531) | 5,746 | |
(Loss) for the half year | (1,191,690) | (1,396,447) | |
Total recognised income and expenses for the half year | 1,132,682 | 3,083,687 | |
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Transactions with equity holders in their capacity as equity holders: |
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Contributions of equity, net of transaction costs and tax | 2,361,280 | - | |
Employee share options | 114,444 | 136,440 | |
2,475,724 | 136,440 | ||
Total equity at the end of the half-year | 3,608,406 | 3,220,127 | |
CAP-XX Limited
Cash flow statements - Unaudited
For the half-year ended 31 December 2013
Consolidated | |||
Half-year 2013 | Half-year 2012 | ||
Currency: Australian Dollars | $ | $ | |
Cash flows from operating activities | |||
Receipts from customers (inclusive of goods and services tax) | 2,087,948 | 1,946,088 | |
Payments to suppliers and employees (inclusive of goods and services tax) | (3,804,513) | (3,862,787) | |
(1,716,565) | (1,916,699) | ||
Tax credit received | 1,003,493 | 1,065,582 | |
Grants received | - | 12,500 | |
Interest received | 29,899 | 58,631 | |
Net cash (outflow) inflow from operating activities | (683,173) | (779,986) | |
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Cash flows from investing activities |
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Payments for property, plant and equipment | (28,504) | (111,753) | |
Net cash (outflow) inflow from investing activities | (28,504) | (111,753) | |
Cash flows from financing activities | |||
Proceeds from issue of shares | 2,361,280 | - | |
Net cash inflow from financing activities | 2,361,280 | - | |
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Net increase (decrease) in cash and cash equivalents | 1,649,603 | (891,739) | |
Cash and cash equivalents at the beginning of the half-year year | 1,105,523 | 3,816,979 | |
Effects of exchange rate changes on cash and cash equivalents | (25,531) | - | |
Cash and cash equivalents at the end of the half-year year |
| 2,729,595 | 2,925,240 |
This general purpose interim financial report, for the half-year reporting period ended 31 December 2013, has been prepared in accordance with Australian equivalents to International Financial Reporting Standards (AIFRSs), other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001. This general purpose interim financial report, for the half-year reporting period ended 31 December 2013, is (with the exception of the figures for 30 June 2013 in the Balance Sheet) unaudited.