Last checked at 27 Mar 2009 07:00
27 March 2009
CAP-XX Limited
Interim Results for the half-year ended 31 December 2008
Financial Highlights
Sales Revenue of A$4.4m was 69% higher than the corresponding period last year
Net Operating Loss of A$1.6m was a 65% improvement over the corresponding period last year
Cash Balance as at the end of January was A$3.0m
Operational Highlights
Completed all actions required by CAP-XX under the partnership agreement with Murata
All scheduled payments were received from Murata as planned
Secured multiple design wins for Solid State Drive (SSD) applications
Signed first stage of collaborative R&D Agreement with Murata
Signed the Murata Re-Sale Agreement
Made significant progress in the development of a surface mount supercapacitor
Anthony Kongats, CEO of CAP-XX said
"The principal focus during the period was to ensure that the milestones and deliverables as per the Murata agreement were completed on schedule. This has been achieved and I am pleased to report that CAP-XX's partnership with Murata has made excellent progress towards reaching both its short and long term goals. In addition, development of new products and of new markets for our existing products has been extremely encouraging.
For further information contact:
| CAP-XX Anthony Kongats, Chief Executive Officer | +61 (0) 2 9428 0139 |
| Kreab Gavin Anderson (Financial PR) Robert Speed / Deborah Walter / Stuart Macaulay | +44 (0) 20 7554 1400 |
| Seymour Pierce Ltd (Nominated Adviser and Broker) Nandita Sahgal | +44 (0) 20 7107 8000 |
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 supercapacitors and energy management systems, predominantly for portable electronic devices.
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 form design. These attributes will be critical for the next generation of high volume, power-hungry portable electronic devices, including mobile phones.
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 devices and portable devices.
Chairman's Review
Business overview
The principal focus for the CAP-XX business in the half year ending 31 December 2008 and in the subsequent period has been to ensure that CAP-XX has met all of its commitments relating to the Murata Definitive Agreement which was signed on May 25th, 2008. I am therefore pleased to report that all of the CAP-XX actions have been successfully completed and all of the anticipated payments from the Technology Transfer were received on time.
CAP-XX's consistent strategy has been to develop relationships with mobile phone manufacturers that will lead to them designing CAP-XX supercapacitors into their products and at the same time providing the manufacturing credibility to deliver large volumes of reliable high quality devices to fulfil their requirements. Obviously, the Murata agreement "de-risks" this strategy. Murata has advised that they remain on schedule in scaling up their high volume supercapacitor manufacturing capability for production towards the end of the current calendar year. Due to the duplication in sales resources servicing the major mobile handset manufacturers, it was agreed that Murata would take the sales and marketing lead and the handover was completed by the end of 2008. Progression towards a mobile design win remains a high priority and good progress has been made over the past six months.
Subsequent to the main Agreement, we signed a Re-Sale Agreement with Murata in October 2008 which will enable a proportion of Murata's manufactured product to be sold under the CAP-XX name. The first stage of the joint product development program was also agreed and the Feasibility Agreement (Stage 1) was signed in November 2008 and will be completed in early April 2009. The Stage 1 component did provide CAP-XX with additional funding during this period. The joint development program is targeted specifically at the completion of a second generation supercapacitor which has surface mount capability. Significant progress has been made and CAP-XX is ahead of its earlier project schedule. Negotiations are continuing with Murata in relation to Stage II of the joint development program.
As highlighted in the 2008 Annual Report, a new market that is looking very attractive is the Solid State Drive (SSD) opportunity. CAP-XX's superior footprint and energy density facilitate the SSD opportunity and we have secured 11 SSD design wins to date.
Sales revenue of A$4.4m grew by 69% compared to the corresponding period last year which was primarily due to the Murata relationship. The global financial crisis is making life more difficult for us like every other company, and the ability to forecast customer product drawdown remains a challenge. It was always planned that duplicate support functions as a result of the Murata relationship would necessitate a headcount reduction at CAP-XX. This, coupled with the current economic climate, has resulted in CAP-XX reducing its total headcount by 15 since the close of the first half which will significantly reduce the cost base.
The CEO and the senior management team have made significant progress, especially with the Murata relationship and with the implementation of the cost reduction program, which have together positioned the company well for future success.
CAP-XX Limited
Income statement - Unaudited
For the half-year ended 31 December 2008
| Consolidated | ||||
| Half-year 2008 | Half-year 2007 | |||
| Currency: Australian Dollars | $ ' 000 | $ ' 000 | ||
| Revenue from sale of goods and services | 4,441 | 2,631 | ||
| Cost of sale of goods and services | (2,232) | (3,115) | ||
| Gross margin (loss) on sale of goods and services | 2,209 | (484) | ||
| Other income | 42 | 237 | ||
| General and administrative expenses | (1,709) | (1,895) | ||
| Process and engineering expenses | (508) | (447) | ||
| Selling and marketing expenses | (807) | (854) | ||
| Research and development expenses | (960) | (893) | ||
| Foreign exchange gains/(losses) | 258 | (111) | ||
| Other expenses | (75) | (14) | ||
| (Loss) before income tax | (1,550) | (4,461) | ||
| Income tax benefit/(expense) | - | (12) | ||
| Net (loss) for the half year | (1,550) | (4,473) | ||
| (Loss) attributable to members of CAP-XX Limited | (1,550) | (4,473) | ||
| Earnings per share for (loss) attributable to the ordinary equity holders of the company | Cents | Cents | ||
| Basic earnings per share | (3.2) | (9.1) | ||
| Diluted earnings per share | (3.2) | (9.1) | ||
CAP-XX Limited
Balance sheet - Unaudited
As at 31 December 2008
| Consolidated | Consolidated | Consolidated | ||
| 31 December 2008 | 30 June 2008 | 31 December 2007 | ||
| Currency: Australian Dollars | $ ' 000 | $ ' 000 | $ ' 000 | |
| ASSETS | ||||
| Current assets | ||||
| Cash and cash equivalents | 565 | 3,481 | 5,551 | |
| Receivables | 3,960 | 360 | 1,390 | |
| Inventories | 1,309 | 1,087 | 1,423 | |
| Other | 192 | 110 | 177 | |
| Total current assets | 6,026 | 5,038 | 8,541 | |
| Non-current assets | ||||
| Property, plant and equipment | 2,210 | 1,597 | 3,073 | |
| Other | 208 | 208 | 208 | |
| Total non-current assets | 2,418 | 1,805 | 3,281 | |
| Total assets | 8,444 | 6,843 | 11,822 | |
| LIABILITIES | ||||
| Current liabilities | ||||
| Payables | 1,816 | 2,018 | 1,782 | |
| Other - deferred service revenue | 1,316 | 1,532 | - | |
| Provisions | 526 | 559 | 499 | |
| Total current liabilities | 3,658 | 4,109 | 2,281 | |
| Non-current liabilities | ||||
| Other - deferred service revenue | 3,157 | - | - | |
| Provisions | 186 | 154 | 169 | |
| Total non-current liabilities | 3,343 | 154 | 169 | |
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|
| |||
| Total liabilities | 7,001 | 4,263 | 2,450 | |
| Net assets | 1,443 | 2,580 | 9,372 | |
| EQUITY | ||||
| Contributed equity | 75,786 | 75,787 | 75,786 | |
| Reserves | 2,146 | 1,734 | 1,419 | |
| Accumulated losses | (76,489) | (74,941) | (67,833) | |
| TOTAL EQUITY | 1,443 | 2,580 | 9,372 |
CAP-XX Limited
Statements of changes in equity - Unaudited
For the half-year ended 31 December 2008
| Consolidated | ||||
| Half-year 2008 | Half-year 2007 | |||
| Currency: Australian Dollars | $ ' 000 | $ ' 000 | ||
| Total equity at the beginning of the half year | 2,580 | 13,395 | ||
| Exchange differences on translation of foreign operations | 46 | 20 | ||
| Net (loss) recognised directly in equity | 46 | 20 | ||
| (Loss) for the half year | (1,549) | (4,473) | ||
| Total recognised income and expenses for the half year | (1,503) | (4,453) | ||
| Transactions with equity holders in their capacity as equity holders: | ||||
| Employee share options | 366 | 366 | ||
| Exercise of options | - | 64 | ||
| 366 | 430 | |||
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|
| |||
| Total equity at the end of the half-year | 1,443 | 9,372 | ||
CAP-XX Limited
Cash flow statements - Unaudited
For the half-year ended 31 December 2008
| Consolidated | ||||
| Half-year 2008 |
Half-year 2007 | |||
| Currency: Australian Dollars | $ ' 000 | $ ' 000 | ||
| Cash flows from operating activities | ||||
| Receipts from customers (inclusive of goods and services tax) | 5,778 | 2,303 | ||
| Payments to suppliers and employees (inclusive of goods and services tax) | (7,898) | (7,120) | ||
| (2,120) | (4,817) | |||
| Interest received | 42 | 232 | ||
| Net cash (outflow) inflow from operating activities | (2,078) | (4,585) | ||
| Cash flows from investing activities | ||||
| Payments for property, plant and equipment | (838) | (672) | ||
| Net cash (outflow) inflow from investing activities | (838) | (672) | ||
| Cash flows from financing activities | ||||
| Proceeds from issue of shares | - | 64 | ||
| Net cash inflow from financing activities | - | 64 | ||
| Net increase (decrease) in cash and cash equivalents | (2,916) | (5,193) | ||
| Cash and cash equivalents at the beginning of the half-year year | 3,481 | 10,744 | ||
| Cash and cash equivalents at the end of the half-year year | 565 | 5,551 | ||
This general purpose interim financial report, for the half-year reporting period ended 31 December 2008, 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 2008, is (with the exception of the figures for 30 June 2008 in the Balance Sheet) unaudited.