Last checked at 5 Mar 2013 07:00
5th March 2013
CAP-XX Limited
Interim Results for the half-year ended 31 December 2012
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 2012.
Financial Highlights
·; Product unit sales of 569,000 Dual Cell Equivalents (DCEs) represents a 13.1% increase year on year with average selling prices remaining steady
·; Net Loss reduced to $1.4m (2011: A$1.6m) due to a reduction in operational expenditure and consequent increase in gross margin
·; Cash reserves of A$2.9m at the period end ( 2011: A$1.2m) which includes the receipt of a tax rebate from the Australian Taxation Office ofA$1.1m
Operational Highlights
·; Development work on a surface mountable device encompassing CAP-XX technology completed
·; Upgraded plant and equipment which will enable CAP-XX to materially reduce manufacturing costs evaluated and ordered. Staged commissioning is expected through FY13
·; Interest from the automotive market sector associated with the application of existing supercapacitor technology continues to grow.
Anthony Kongats, CEO of CAP-XX said:
"I am pleased to report tangible progress in the development of our supercapacitor product for our key target markets of portable electronic devices and micro hybrid automotive applications. Meanwhile we have completed the development of our surface mount device, which is expected to encourage adoption of our novel, proven energy storage technology in high volume portable devices where physical device size is an issue. We have also focused on managing our cost of production, through investment in our own manufacturing plant and are encouraged by progress achieved by our manufacturing partner Murata in driving awareness of the product offering, which we expect to be reflected in higher royalty revenues in the coming quarter and beyond."
For further information contact:
CAP-XX
Anthony Kongats, Chief Executive Officer +61 (0) 2 9428 0139
Kreab Gavin Anderson & Company (Financial PR)
Robert Speed +44 (0) 20 7074 1800
Seymour Pierce (Nominated Adviser and Broker)
Rick Thompson/Catherine Leftley (Corporate Finance)
David Banks (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 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
The major highlights over the past six months include:
·; Continued worldwide interest in the CAP-XX supercapacitor technology especially in the automotive markets
·; Finalising the development of a surface mountable device encompassing CAP-XX technology
·; Purchase orders raised on upgraded plant and equipment which will enable CAP-XX to materially reduce manufacturing costs
·; Overall increase in year on year sales and a reduction in the net loss
Interest in the CAP-XX technology in the automotive market continues to gain momentum notably with automobile manufacturers and tier 1 component suppliers. The main interest is the CAP-XX solution to the Stop-Start; Enhanced Cold Cranking and Energy Recapture Applications which include Regenerative Braking and Coasting. Extensive testing of the CAP-XX parts to industry standards and against competitors products is achieving good results. To date, a significant number of NDA's are in place with potential licensees from Europe, USA, India, China and Japan and patents have been filed. Key components of a sample test plant have been purchased and commissioned at CAP-XX's Lane Cove premises. It is anticipated that at least one licensee will be in place before end of the current calendar year.
Development work has been completed on a surface mountable supercapacitor device which encompasses CAP-XX technology. The real benefits of this product offering is its lower manufacturing costs, reduced assembly costs for CAP-XX's customers and its attractiveness for new markets as a result of reduced form factor. Again, external interest in this product development is encouraging, with a number of high profile component manufacturers in early stage discussions. The focus is now on producing sufficient samples to meet the demand from these interested parties.
Product sales revenue of US$1.9m (2011: US$1.7m) is up 12% over the corresponding half year. This is due to volume increases in existing markets as well as initial shipments for new design wins. The majority of the sale volumes remain dominated by CAP-XX's traditional markets of handheld and portable devices. Coupled with the increase in volumes it is pleasing to note that the Average Sales Price has remained at similar levels to last year. New Sales opportunities and requests for quotes are on the increase, with the ramp in activity primarily due to the acceptance of supercapacitors as an acceptable, reliable and proven energy storage device. The majority of the opportunities that are currently being evaluated are both large and are being generated from blue chip end customers.
The royalty revenue received from Murata remains at modest levels. The total revenue recognised for the six month period was flat at $22K. Murata has been able to release additional generations of its supercapacitor range over the past six months and have also added additional manufacturing capacity. Murata have also advised that it has dedicated additional resources to its supercapacitor sales force and the benefit of these initiatives through an increase in royalty revenue anticipated from the March'13 quarter onwards.
Cash reserves as at the end of December 2012 were A$2.9m (2011: A$1.2M) which includes an R&D tax rebate from the Australian Taxation Office of A$1.1M.The operating loss after tax recorded for the past six months was $1.4M (2011: $1.6M) The $0.2M improvement is a direct result of the increase in gross margin which is due to increased sales volumes and improved operating performance at CAP-XX's contract manufacturers and an overall reduction in operating expenditure. CAP-XX has invested in upgrading existing operational plant and machinery which will assist in further reducing manufacturing costs, increase production efficiency and capacity and incrementally improve the overall performance of the existing product. The new plant is currently being evaluated and is on track to be commissioned in the second half of FY13. The anticipated cost savings will accrue from the beginning of FY14.
The past six months have seen the Company make real progress in product development for new and emerging markets, increasing sales and delivering operational efficiencies. The Company will remain focussed on these key areas. The Board remain confident that with the on-time delivery of the initiatives, as set out above, CAP-XX will be provided with the necessary springboard for improved results.
Patrick Elliott
Chairman
4th March, 2013
CAP-XX Limited
Income statement - Unaudited
For the half-year ended 31 December 2012
Consolidated |
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Half-year 2012 | Half-year 2011 | |||
Currency: Australian Dollars | $ | $ | ||
Revenue from sale of goods and services | 1,823,391 | 1,629,542 | ||
Cost of sale of goods and services | (1,310,313) | (1,196,843) | ||
Gross margin (loss) on sale of goods and services | 513,078 | 432,699 | ||
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Other income | 12,500 | 81,835 | ||
Other revenue | 58,631 | 39,860 | ||
General and administrative expenses | (1,154,516) | (1,139,041) | ||
Process and engineering expenses | (228,183) | (181,450) | ||
Selling and marketing expenses | (202,999) | (180,613) | ||
Research and development expenses | (743,379) | (948,383) | ||
Foreign exchange gains/(losses) | (4,992) | - | ||
Other expenses | (4,725) | (32,306) | ||
(Loss) before income tax | (1,754,585) | (1,927,396) | ||
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Income tax benefit/(expense) | 358,138 | 318,986 | ||
Net (loss) for the half year | (1,396,447) | (1,608,410) | ||
(Loss) attributable to members of CAP-XX Limited | (1,396,447) | (1,608,410) | ||
Earnings (loss) per share attributable to the ordinary equity holders of the company
| Cents | Cents | ||
Basic earnings per share | (1.6) | (2.1) | ||
Diluted earnings per share | (1.6) | (2.1) | ||
CAP-XX Limited
Balance sheet - Unaudited
As at 31 December 2012
Consolidated |
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31 December 2012 | 30 June 2012 | 31 December 2011 | ||
Currency: Australian Dollars | $ | $ | $ | |
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | 2,925,240 | 3,816,979 | 1,209,711 | |
Receivables | 873,705 | 1,709,390 | 836,302 | |
Inventories | 838,928 | 758,027 | 1,348,565 | |
Other | 87,220 | 81,677 | 67,923 | |
Total current assets | 4,725,093 | 6,366,073 | 3,462,501 | |
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Non-current assets |
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Property, plant and equipment | 465,725 | 515,716 | 667,297 | |
Other | 236,508 | 236,507 | 236,507 | |
Total non-current assets | 702,233 | 752,223 | 903,804 | |
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Total assets | 5,427,326 | 7,118,296 | 4,366,305 | |
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LIABILITIES |
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Current liabilities |
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Payables | 813,164 | 900,264 | 646,667 | |
Provisions | 664,771 | 740,382 | 629,032 | |
Progress payments - Sale of Plant | 580,737 | 772,650 | 1,355,053 | |
Total current liabilities | 2,058,672 | 2,413,296 | 2,630,752 | |
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Non-current liabilities |
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Provisions | 148,527 | 230,612 | 76,140 | |
Total non-current liabilities | 148,527 | 230,612 | 76,140 | |
Total liabilities | 2, 207,199 | 2,643,908 | 2, 706,892 | |
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Net assets | 3,220,127 | 4,474,388 | 1,659,413 | |
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EQUITY |
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Contributed equity | 87,932,560 | 87,932,560 | 83,979,118 | |
Reserves | 3,446,337 | 3,306,477 | 3,140,535 | |
Accumulated losses | (88,158,770) | (86,764,649) | (85,460,240) | |
TOTAL EQUITY | 3,220,127 | 4,474,388 | 1,659,413 | |
CAP-XX Limited
Statements of changes in equity - Unaudited
For the half-year ended 31 December 2012
Consolidated |
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Half-year 2012 | Half-year 2011 | |||
Currency: Australian Dollars | $ | $ | ||
Total equity at the beginning of the half year | 4,474,388 | 3,164,788 | ||
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Exchange differences on translation of foreign operations | 5,746 | (18,315) | ||
Net (loss) recognised directly in equity | 5,746 | (18,315) | ||
(Loss) for the half year | (1,396,447) | (1,608,410) | ||
Total recognised income and expenses for the half year | 3,083,687 | 1,538,063 | ||
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Transactions with equity holders in their capacity as equity holders: |
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Employee share options | 136,440 | 121,350 | ||
Exercise of options | - | - | ||
136,440 | 121,350 | |||
Total equity at the end of the half-year | 3,220,127 | 1,659,413 | ||
CAP-XX Limited
Cash flow statements - Unaudited
For the half-year ended 31 December 2012
Consolidated |
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Half-year 2012 | Half-year 2011 | |||
Currency: Australian Dollars | $ | $ | ||
Cash flows from operating activities | ||||
Receipts from customers (inclusive of goods and services tax) | 2,121,748 | 1,863,741 | ||
Payments to suppliers and employees (inclusive of goods and services tax) | (2,972,865) | (3,748,567) | ||
(851,117) | (1,884,826) | |||
Grants received | 12,500 | 47,199 | ||
Interest received | 58,631 | 39,860 | ||
Net cash (outflow) inflow from operating activities | (779,986) | (1,797,767) | ||
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Cash flows from investing activities |
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Payments for property, plant and equipment | (111,753) | (66,003) | ||
Net cash (outflow) inflow from investing activities | (111,753) | (66,003) | ||
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 | (891,739) | (1,863,770) | ||
Cash and cash equivalents at the beginning of the half-year year | 3,816,979 | 3,073,481 | ||
Cash and cash equivalents at the end of the half-year year |
| 2,925,240 | 1,209,711 | |
This general purpose interim financial report, for the half-year reporting period ended 31 December 2012, 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 2012, is (with the exception of the figures for 30 June 2012 in the Balance Sheet) unaudited.