Last checked at 4 Mar 2010 07:00
4th March 2010
CAP-XX Limited ("CAP-XX" or the "Company")
Interim Results for the half-year ended 31 December 2009
Financial Highlights
·; Sales revenue of A$2.6m was down due to the timing of the Murata R&D Feasibility payments and drop in reduced volumes.
·; Operating expenses of A$2.4m was a 40% decreases on the corresponding period of 2008/09.
·; Net Operating Loss of A$2.1m was negatively impacted by foreign exchange losses due to the strengthening Australian dollar.
·; Cash Balance as at the end of December 2009 was A$1.45m
Operational Highlights
·; Murata remain on track with their supercapacitor production line to be operational by April 2010.
·; Plant transferred from Lane Cove to Nationgate in final stages of commissioning
·; CAP-XX order book is strengthening with an increase in customer inquiries and new design wins fast approaching the manufacturing stage
·; Murata's R&D Agreement has been agreed and is in the process of being signed.
Anthony Kongats, CEO of CAP-XX said
"CAP-XX has made considerable progress in building the foundations for the ramp up of production of its supercapacitor products. Murata remain on schedule with their manufacturing line, Nationgate a second contract manufacturer will be operational within the next month and the development of new products and markets are beginning to pay dividends as customers orders are on the increase. CAP-XX remains committed to the development of supplementary and new products in emerging markets.
For further information contact:
CAP-XX
Anthony Kongats, Chief Executive Officer +61 (0) 2 9428 0139
Kreab Gavin Anderson (Financial PR)
Robert Speed +44 (0) 20 7074 1800
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
During the last six months CAP-XX has focused on consolidating its manufacturing and operational foundation in order to position itself for the recovery of the electronics market. The manufacturing initiatives surrounding Murata and Nationgate progressed steadily while operating costs were reduced as committed.
Murata is finalising the commissioning of their manufacturing line and as a result of a strong sales program, first sales are expected in quarter 2, 2010. This will lead to the commencement of royalties for CAP-XX. The proposed R& D Agreement has the major issues agreed and is in the formal approval and signing process by both parties. Execution of this Agreement will generate additional receipts for CAP-XX
In Malaysia, Nationgate continue to make progress with the commissioning of the acquired plant and machinery from CAP-XX's Lane Cove facility and remains on track to have this completed and in operation by the 2nd Quarter 2010. We plan that Polar Twin Advance will continue as a contract manufacturer and together with Nationgate will provide CAP-XX with the necessary long term manufacturing flexibility to satisfy current demand and the opportunity to increase capacity as demand increases.
Reported sales revenue of A$2.6m was down 41%, however the primary contributor was the timing of the Murata payments. Prior year's figures included the Murata research and development feasibility payments totalling A$1.4m. Sales volume remained constrained by the global economic crisis but was partially offset by an increase in average selling prices. In recent months order and customer enquiries are showing signs of strengthening and are returning towards the levels that the business experienced pre-crisis. This strengthening appears to be due to an increase in general customer market confidence coupled with initial orders from new market opportunities, especially in the Solid State Drive field. The timing of the Nationgate commissioning will be important in delivering the expected near term order flow.
Pleasingly, the company's operating expenses continue to fall with the expenditure of $2.4m for the half representing a 40% decrease from the prior year. This has been achieved by significantly reducing the headcount and associated cost base due to the relationship with Murata and transfer of the remaining assembly production to Malaysia. The strong Australian Dollar has had a negative impact on the overall result due to US Dollars and Sterling that were periodically held during the period.
I am pleased to report that significant progress has been made by the CAP-XX management team over the last six months and with improving markets coupled with Murata and Nationgate coming on line, the outlook is encouraging. The 2010 calendar year should see the completion of this operational reconstruction and allow management to focus more on growing the business off a stable product, manufacturing and operational base.
CAP-XX Limited
Income statement - Unaudited
For the half-year ended 31 December 2009
|
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| Consolidated |
| |
|
|
| Half-year 2009 | Half-year 2008 | |
|
|
|
|
| |
| Currency: Australian Dollars |
| $ ' 000 | $ ' 000 | |
|
|
|
|
| |
| Revenue from sale of goods and services |
| 2,617,349 | 4,441,460 | |
| Cost of sale of goods and services |
| (1,812,935) | (2,232,257) | |
| Gross margin (loss) on sale of goods and services |
| 804,414 | 2,209,203 | |
|
|
|
|
| |
| Other income |
| 12,712 | 42,036 | |
|
|
|
|
| |
| General and administrative expenses |
| (1,135,562) | (1,709,076) | |
| Process and engineering expenses |
| (354,314) | (508,098) | |
| Selling and marketing expenses |
| (127,210) | (807,211) | |
| Research and development expenses |
| (769,086) | (959,700) | |
| Foreign exchange gains/(losses) |
| (454,353) | 257,783 | |
| Other expenses |
| (30,458) | (74,406) | |
| (Loss) before income tax |
| (2,053,857) | (1,549,469) | |
|
|
|
|
| |
| Income tax benefit/(expense) |
| - |
| |
| Net (loss) for the half year |
| (2,053,857) | (1,549,469) | |
|
|
|
|
| |
| (Loss) attributable to members of CAP-XX Limited |
| (2,053,857) | (1,549,469) | |
|
|
|
|
| |
| Earnings per share for (loss) attributable to the ordinary equity holders of the company |
| Cents | Cents | |
| Basic earnings per share |
| (3.3) | (3.2) | |
| Diluted earnings per share |
| (3.3) | (3.2) | |
CAP-XX Limited
Balance sheet - Unaudited
As at 31 December 2009
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| Consolidated | Consolidated | Consolidated |
|
|
| 31 December 2009 | 30 June 2009 | 31 December 2008 |
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|
|
|
|
|
| Currency: Australian Dollars |
| $ ' 000 | $ ' 000 | $ ' 000 |
|
|
|
|
|
|
| ASSETS |
|
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|
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| Current assets |
|
|
|
|
| Cash and cash equivalents |
| 1,449,276 | 4,060,241 | 565,225 |
| Receivables |
| 444,477 | 293,218 | 3,960,038 |
| Inventories |
| 1,074,681 | 1,455,715 | 1,308,667 |
| Other |
| 312,625 | 36,195 | 191,432 |
| Total current assets |
| 3,281,059 | 5,845,369 | 6,025,362 |
|
|
|
|
|
|
| Non-current assets |
|
|
|
|
| Property, plant and equipment |
| 1,321,306 | 1,695,338 | 2,210,328 |
| Other |
| 208,233 | 208,233 | 208,233 |
| Total non-current assets |
| 1,529,539 | 1,903,571 | 2,418,561 |
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|
|
|
|
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| Total assets |
| 4,810,598 | 7,748,940 | 8,443,923 |
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|
|
|
|
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| LIABILITIES |
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| Current liabilities |
|
|
|
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| Payables |
| 861,391 | 1,189,678 | 1,815,839 |
| Other - deferred service revenue |
| 1,315,552 | 2,894,215 | 1,315,552 |
| Progress payments - Sale of plant |
| 699,405 |
|
|
| Provisions |
| 401,187 | 409,644 | 526,275 |
|
Total current liabilities |
| 3,277,535 | 4,493,537 | 3,657,666 |
|
|
|
|
|
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| Non-current liabilities |
|
|
|
|
| Other - deferred service revenue |
| - | - | 3,157,325 |
| Provisions |
| 176,943 | 158,520 | 186,196 |
| Total non-current liabilities |
| 176,943 | 158,520 | 3,343,521 |
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|
|
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|
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| Total liabilities |
| 3,454,478 | 4,652,057 | 7,001,187 |
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|
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| Net assets |
| 1,356,120 | 3,096,883 | 1,442,736 |
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| EQUITY |
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| Contributed equity |
| 78,906,340 | 78,906,340 | 75,786,603 |
| Reserves |
| 2,569,478 | 2,244,733 | 2,145,762 |
| Accumulated losses |
| (80,119,698) | (78,054,190) | (76,489,629) |
| TOTAL EQUITY |
| 1,356,120 | 3,096,883 | 1,442,736 |
CAP-XX Limited
Statements of changes in equity - Unaudited
For the half-year ended 31 December 2009
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| Consolidated |
| |
|
|
| Half-year 2009 | Half-year 2008 | |
|
|
|
|
| |
| Currency: Australian Dollars |
| $ ' 000 | $ ' 000 | |
|
|
|
|
| |
| Total equity at the beginning of the half year |
| 3,096,883 | 2,580,232 | |
|
|
|
|
| |
| Exchange differences on translation of foreign operations |
| 103,611 | 45,980 | |
| Net (loss) recognised directly in equity |
| 103,611 | 45,980 | |
| (Loss) for the half year |
| (2,053,857) | (1,549,469) | |
| Total recognised income and expenses for the half year |
| (1,950,246) | (1,503,489) | |
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|
| |
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| |
| Transactions with equity holders in their capacity as equity holders: |
|
|
| |
| Employee share options |
| 209,483 | 365,993 | |
| Exercise of options |
| - | - | |
|
|
|
|
| |
|
|
| 209,483 | 365,993 | |
|
|
|
|
| |
| Total equity at the end of the half-year |
| 1,356,120 | 1,442,736 | |
CAP-XX Limited
Cash flow statements - Unaudited
For the half-year ended 31 December 2009
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| Consolidated |
| |
|
|
| Half-year 2009 | Half-year 2008 | |
|
|
|
|
| |
| Currency: Australian Dollars |
| $ ' 000 | $ ' 000 | |
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| |
| Cash flows from operating activities |
|
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| |
| Receipts from customers (inclusive of goods and services tax) |
| 1,284,203 | 5,778,359 | |
| Payments to suppliers and employees (inclusive of goods and services tax) |
| (3,895,370) | (7,898,289) | |
|
|
| (2,611,167) | (2,119,930) | |
| Interest received |
| 12,712 | 42,036 | |
| Net cash (outflow) inflow from operating activities |
| (2,598,455) | (2,077,894) | |
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| Cash flows from investing activities |
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| |
| Payments for property, plant and equipment |
| (12,510) | (837,941) | |
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| |
| Net cash (outflow) inflow from investing activities |
| (12,510) | (837,941) | |
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| Cash flows from financing activities |
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| |
| Proceeds from issue of shares |
| - | - | |
| Net cash inflow from financing activities |
| - | - | |
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| |
Net increase (decrease) in cash and cash equivalents |
| (2,610,965) | (2,195,835) | |
| Cash and cash equivalents at the beginning of the half-year year |
| 4,060,241 | 3,481,060 | |
| Cash and cash equivalents at the end of the half-year year |
| 1,449,276 | 565,225 | |
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This general purpose interim financial report, for the half-year reporting period ended 31 December 2009, 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 2009, is (with the exception of the figures for 30 June 2009 in the Balance Sheet) unaudited.