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27 Feb 2012 07:00
27th February 2012
CAP-XX Limited
Interim Results for the half-year ended 31 December 2011
CAP-XX Limited, a world leader in the design and manufacture of revolutionary thin-form supercapacitors, which considerably extend the performance of conventional battery power systems, announces its interim results for the half-year ended 31 December 2011.
Financial Highlights
·; Product sales in USD and volume represent a 58% increase on a year to year basis while average selling prices remained steady. In AUD this represents a 44% increase in product sales
·; Net loss reduced from A$2.3m to A$1.6m
·; Cash reserves of A$1.2m at the period end which includes the receipt of the final Murata R&D (A$0.4m) payment as well as the tax rebate from the Australian Taxation Office (A$0.7m)
·; Total Revenue of A$1.6m million (2010: AUD$1.5 million) reflects the timing of the Murata collaborative R&D project with nil payment being received in the last 6 months (2010:A$0.4m,).
Operational Highlights
·; Information from Murata on increased production capacity and market interest indicates license revenue should start to build over the course of this calendar year
·; Both Nationgate and Polar Twin providing consistent manufacturing performance which is assisting in improving the product gross margin.
·; Application of CAP-XX's existing supercapacitor technology is proving to be attractive to the automotive market sector, especially for Stop-Start applications. Testing confirms significant increase in lead acid battery life when coupled with the CAP-XX technology
·; Leading Chinese automotive component company to assist CAP-XX to commercialise CAP-XX's technology in the Chinese automotive market
Anthony Kongats, CEO of CAP-XX said:
"We are pleased with the progress made in driving adoption of our supercapacitor technology for small portable devices through our relationship with Murata, following the 17th October 2011 product launch. We continue to invest in the development of a surface mount device suitable for very high volume devices. Our recent success in developing and testing a supercapacitor for automotive Stop-Start applications represents a significant step towards opening another major end market application for our technology. And we are pleased to today announce that we have been approached by a leading Chinese automotive component company to commercialise the CAP-XX supercapacitor technology for various automotive applications in China"
For further information contact:
CAP-XX
Anthony Kongats, Chief Executive Officer +61 (0) 2 9428 0139
Kreab Gavin Anderson & Company (Financial PR)
Robert Speed / Deborah Walter / Anthony Hughes +44 (0) 20 7074 1800
Seymour Pierce Ltd (Nominated Adviser and Broker)
Nandita Sahgal/Catherine Leftley (Corporate Finance)
David Banks/Paul Jewell (Corporate Broking) +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.
The unique feature of CAP-XX's supercapacitors is their ability to store high volumes of energy and output high power levels. These devices are available in a thin form design for high volume, power-hungry portable electronic devices, including mobile phones. Larger devices are in development for automotive applications, providing considerable performance enhancement to fuel saving Stop-Start systems.
Portable devices and automotive are fast 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 portable devices.
Chairman's Review
Business overview
During the half year ending 31 December, 2011 product sales growth was strong and operational losses reduced. Other recent highlights include notice of formal launch by Murata of its supercapacitor products under our licence and research breakthroughs demonstrating the impact of our supercapacitors on improving battery life in automotive Stop-Start systems.
CAP-XX's own product sales revenue of US$1.7m (2010: US$1.1m) rose by 58% over the previous year. This is due to volume increases in existing handheld and portable device markets. The average sales price has remained steady over the same period. The increase in volume was due to the combination of improved sales from existing customers coupled with an overall improvement in the available capacity from our manufacturing partners. Unlike prior years, there was no Murata service revenue recorded in the December 2011 results (2010: A$350k), however the Murata royalty revenue of A$22k (2010: Nil) does continue to grow. The strengthening AUD against the USD does have a negative impact on the Company's total revenue and over the reported period the impact was (17%). The total reported revenue for the December 2011 period was A$ 1.6m (2010: A$1.5M).Cash reserves as at the end of December 2011 were A$1.2m which included the receipt of the final remaining payment associated with the collaborative R&D agreement with Murata as well as the R&D tax rebate from the Australian Taxation Office (A$0.7m).
The operational loss after tax recorded for the past six months was A$1.6m (2010: A$2.3m) which was an A$0.7m improvement over the same period last year. The main contributing factors to this improvement was due to the consistent performance from our contract manufacturers with an increase in yields which has resulted in an improvement in the reported gross margin and the inclusion of the R&D Tax rebate.
The most significant progress made by the Company in applying current technology to new markets has been the development of supercapacitor related solutions for the automotive market sector. It was particularly pleasing to report the successful extension of our technology to develop a supercapacitor for use in automotive Stop-Start applications. The solution provides significant performance improvements relative to battery-only systems. While testing is ongoing, we have demonstrated improvements in battery life nearly three times that of a battery only solution when tested to the New European Drive Cycle Specification and over ten times when tested to a Japanese specification.
The Company has been approached by a leading Chinese automotive component group to commercialise the CAP-XX supercapacitor technology for various automotive applications in China. The first target market is for the use of supercapacitors to improve the performance of lead acid batteries in automotive Stop-Start applications. CAP-XX recently demonstrated significant performance enhancements over conventional battery only Stop-Start systems. The discussions, which are at an advanced stage and are subject to Chinese Government approval, are expected to secure funding for CAP-XX's automotive supercapacitor project possibly by a direct investment in CAP-XX equity. Any new shares to be issued under the proposed agreement would be issued under the terms of the Group's existing authority to allot shares.
The Company is also pleased with the recent progress by Murata in commercialising the CAP-XX technology in small form factor supercapacitors. While confidentiality agreements mean the Company cannot comment in detail, the recent public statements by Murata and others about the increase in Murata's production capacity, sales and sales leads are very encouraging. The Company looks forward to seeing the devices being adopted in a wider range of mobile phones, digital video cameras, digital still cameras and many other products.
Overall the Company continues to build from a solid base and the Board remains optimistic in regard to the future prospects of CAP-XX.
Michael Quinn
Chairman
Feb 27th 2012
CAP-XX Limited
Income statement - Unaudited
For the half-year ended 31 December 2011
Consolidated |
| |||
Notes | Half-year 2011 | Half-year 2010 | ||
Currency: Australian Dollars | $ ' 000 | $ ' 000 | ||
Revenue from sale of goods and services | 3 | 1,629,542 | 1,466,526 | |
Cost of sale of goods and services | (1,196,843) | (1,513,050) | ||
Gross margin (loss) on sale of goods and services | 432,699 | (46,524) | ||
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Other income | 81,835 | 157,000 | ||
Other revenue | 39,860 | 58,995 | ||
General and administrative expenses | (1,139,041) | (1,179,636) | ||
Process and engineering expenses | (181,450) | (150,531) | ||
Selling and marketing expenses | (180,613) | (199,290) | ||
Research and development expenses | (948,383) | (643,035) | ||
Foreign exchange gains/(losses) | - | (302,524) | ||
Other expenses | (32,306) | (10,972) | ||
(Loss) before income tax | (1,927,396) | (2,316,517) | ||
|
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Income tax benefit/(expense) | 318,986 | - | ||
Net (loss) for the half year | (1,608,410) | (2,316,517) | ||
(Loss) attributable to members of CAP-XX Limited | (1,608,410) | (2,316,517) | ||
Earnings (loss) per share attributable to the ordinary equity holders of the company
| Cents | Cents | ||
Basic earnings per share | (2.5) | (3.4) | ||
Diluted earnings per share | (2.5) | (3.4) | ||
CAP-XX Limited
Balance sheet - Unaudited
As at 31 December 2011
Consolidated |
| |||
31 December 2011 | 30 June 2011 |
31 December 2010 | ||
Currency: Australian Dollars | $ ' 000 | $ ' 000 | $ ' 000 | |
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | 1,209,711 | 3,073,481 | 3,015,613 | |
Receivables | 836,302 | 1,272,221 | 289,401 | |
Inventories | 1,348,565 | 1,466,257 | 1,120,424 | |
Other | 67,923 | 59,260 | 149,503 | |
Total current assets | 3,462,501 | 5,871,219 | 4,574,941 | |
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Non-current assets |
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Property, plant and equipment | 667,297 | 755,111 | 993,122 | |
Other | 236,507 | 208,233 | 208,233 | |
Total non-current assets | 903,804 | 963,344 | 1,201,355 | |
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Total assets | 4,366,305 | 6,834,563 | 5,776,296 | |
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LIABILITIES |
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Current liabilities |
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| |
Payables | 646,667 | 1,247,073 | 1,049,013 | |
Progress payments - Sale of Plant | 1,355,053 | 1,742,212 | 2,139,948 | |
Provisions | 629,032 | 516,226 | 626,739 | |
Total current liabilities | 2,630,752 | 3,505,511 | 3,815,700 | |
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Non-current liabilities |
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Provisions | 76,140 | 164,264 | 65,529 | |
Total non-current liabilities | 76,140 | 164,264 | 1,492,161 | |
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Total liabilities | 2, 706,892 | 3,669,775 | 3,881,229 | |
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Net assets | 1,659,413 | 3,164,788 | 1,895,067 | |
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EQUITY |
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Contributed equity | 83,979,118 | 83,979,118 | 81,878,750 | |
Reserves | 3,140,535 | 3,037,500 | 2,899,357 | |
Accumulated losses | (85,460,240) | (83,851,830) | (82,883,040) | |
TOTAL EQUITY | 1,659,413 | 3,164,788 | 1,895,067 | |
CAP-XX Limited
Statements of changes in equity - Unaudited
For the half-year ended 31 December 2011
Consolidated |
| |||
Half-year 2011 | Half-year 2010 | |||
Currency: Australian Dollars | $ ' 000 | $ ' 000 | ||
Total equity at the beginning of the half year | 3,164,788 | 3,803,971 | ||
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| |||
Exchange differences on translation of foreign operations | (18,315) | 179,613 | ||
Net (loss) recognised directly in equity | (18,313) | 179,613 | ||
(Loss) for the half year | (1,608,420) | (2,316,517) | ||
Total recognised income and expenses for the half year | (1,626,723) | (2,136,904) | ||
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Transactions with equity holders in their capacity as equity holders: |
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Employee share options | 121,350 | 228,000 | ||
Exercise of options | - | - | ||
121,350 | 228,000 | |||
Total equity at the end of the half-year | 1,659,413 | 1,895,067 | ||
CAP-XX Limited
Cash flow statements - Unaudited
For the half-year ended 31 December 2011
Consolidated |
| |||
Half-year 2011 | Half-year 2010 | |||
Currency: Australian Dollars | $ ' 000 | $ ' 000 | ||
Cash flows from operating activities | ||||
Receipts from customers (inclusive of goods and services tax) | 1,863,741 | 2,842,357 | ||
Payments to suppliers and employees (inclusive of goods and services tax) | (3,748,567) | (3,926,419) | ||
(1,884,826) | (1,084,062) | |||
Grants received | 47,199 | - | ||
Interest received | 39,860 | 58,995 | ||
Net cash (outflow) inflow from operating activities | (1,797,767) | (1,025,067) | ||
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Cash flows from investing activities |
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Payments for property, plant and equipment | (66,003) | (73,290) | ||
Net cash (outflow) inflow from investing activities | (66,003) | (73,290) | ||
Cash flows from financing activities | ||||
Proceeds from issue of shares | - | - | ||
Net cash inflow from financing activities | - | - | ||
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Net increase (decrease) in cash and cash equivalents | (1,863,770) | (1,098,357) | ||
Cash and cash equivalents at the beginning of the half-year year | 3,073,481 | 4,113,970 | ||
Cash and cash equivalents at the end of the half-year year |
| 1,209,711 | 3,015,613 | |
This general purpose interim financial report, for the half-year reporting period ended 31 December 2011, 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 2011, is (with the exception of the figures for 30 June 2011 in the Balance Sheet) unaudited.
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