Cap-xx Regulatory News (CPX)

31 Mar 2008 07:01

CAP-XX Limited31 March 2008 31 March 2008 CAP-XX Limited Interim results for the half-year ended December 31st 2007 Financial Highlights • Sales of A$2.6m were 10% higher than the corresponding period last year, up 25% in US$ • Loss of A$4.5m, 5% lower than the corresponding period last year • Cash balance at end of period was A$5.6m Operational Highlights • CAP-XX has established a unique technology position and built a powerful commercial partnership based 'ecosystem' with top 5 handset manufactures and their tier 1 suppliers • Executing to previously defined strategy despite challenging environment • Manufacturing partner will accelerate design wins whilst reducing financial and execution risk • Positioned for high volume mass-production with established and powerful brand Anthony Kongats, CEO of CAP-XX said: "CAP-XX has developed a unique technology position and significantly advancedits relationships with the leading mobile handset manufacturers since listing onAIM. The securing of a partnership agreement, announced last week, will enableus to expand capacity to meet the demands of our target markets whilst reducingexecution risk in the widespread adoption of our supercapacitor product." For further information contact: CAP-XXAnthony Kongats, Chief Executive Officer +44 (0) 20 7554 1400 +61 (0) 2 9428 0139 Gavin Anderson & Company (Financial PR)Robert Speed / Deborah Walter / Stuart Macaulay +44 (0) 20 7554 1400 Collins Stewart (Broker and Nomad)Tim Mickley +44 (0) 20 7523 8000 More information is available at www.cap-xx.com Chairman's Review Business overview I am pleased to report that during the half year ending 31 Dec 2007 and in thesubsequent period, CAP-XX has achieved key milestones in the execution of itsstrategy to become a significant supplier to the hand held mobile devicemarkets. It has also shown steady growth in its sales and operations over thereporting period. CAP-XX's strategy has been to develop relationships with mobile phonemanufacturers that will lead to them designing the CAP-XX supercapacitors intotheir products. At the same time it has needed to provide the manufacturingcredibility to ensure that it can deliver large volumes of reliable high qualitydevices to fulfil customer requirements. Relationships with key departments of the top five mobile phone manufacturershave been deepened and three well known suppliers are now providing integratedcircuits for applications such as camera flash and power management integratingCAP-XX supercapacitors. This is a significant enabling step for mobile phonemanufactures to implement solutions incorporating our supercapacitors. The next milestone has been the signing of a letter of intent for a partnershipagreement with Murata Manufacturing Company which will offer confidence tocustomers that supercapacitors can be shipped to them in quantity and quality.Murata is a world leading supplier of electronic components to the mobilehandset (as well as many other) industries. The agreement with Murata has"de-risked" the Company as a supplier and therefore strengthens the long termfuture of our Company. The Company's engineers have made steady development progress to support therequirements of the mobile phone markets. Product specifications have beensharpened and manufacturing equipment designed and ordered to manufacture theseproducts. This equipment will be installed and commissioned midyear which willenable the initial production of devices for the mobile phone markets into thesecond half of the year. A new range of higher temperature, higher voltagesupercapacitors also entered production during the half. Sales growth during the half ended 31 December, 2007 grew 25% in US dollar termsbut rose 10% in Australian dollar terms. Several new customers were obtainednotably in vehicle tracking systems and specialised radio applications. I am also pleased to advise that we have welcomed Michael Taylor to the CAP-XXteam. Michael is a very experienced financial executive and has taken the roleof Chief Financial Officer. Like many "small cap" companies in the current environment, we do not think thatthe movement in the Company's share price reflects the positive operational andbusiness development progress of the Company. As operational and partnershipdevelopment have underpinned the Company's progress we have no immediate plansto raise capital in the current financial market. The CEO and his team have made excellent progress over the reporting perioddespite an unhelpful environment. Notes to Editors: CAP-XX is a world leader in the design and manufacture of thin formsupercapacitors and energy management systems, predominantly for portableelectronic devices. The unique feature of CAP-XX's supercapacitors is their ability to store highvolumes of energy and output high power levels within a thin form design. Theseattributes will be critical for the next generation of high volume, power-hungryportable electronic devices, including mobile phones. Portable devices are one of the fastest growing segments of the electronicsmarket and provide the greatest opportunities for CAP-XX's products. CAP-XX'sproducts are already an established enabling technology for the currentgeneration of wireless devices, such as PDAs and PCMCIA cards. CAP-XX LimitedIncome statement - UnauditedFor the half-year ended 31 December 2007 Consolidated Half-year 2007 Half-year 2006 Currency: Australian Dollars $ ' 000 $ ' 000 Revenue from sale of goods 2,631 2,384Cost of sale of goods (3,115) (3,098) ----------------------------------Gross margin (loss) on sale of goods (484) (714) Other income 237 559 General and administrative expenses (1,895) (1,813)Process and engineering expenses (447) (432)Selling and marketing expenses (854) (658)Research and development expenses (893) (1,330)Foreign exchange losses (111) (150)Other expenses (14) (168) ----------------------------------(Loss) before income tax (4,461) (4,706) ---------------------------------- Income tax benefit/(expense) (12) - ----------------------------------Net (loss) for the half year (4,473) (4,706) ---------------------------------- (Loss) attributable to members of CAP-XX Limited (4,473) (4,706) ================================== Earnings per share for (loss) Cents Centsattributable to the ordinaryequity holders of the companyBasic earnings per share (9.1) (9.7) Diluted earnings per share (9.1) (9.7) CAP-XX LimitedBalance sheet - UnauditedAs at 31 December 2007 Consolidated Consolidated Consolidated 31 December 2007 30 June 2007 31 December 2006 Currency: Australian $ ' 000 $ ' 000 $ ' 000Dollars ASSETSCurrent assetsCash and cash equivalents 5,551 10,744 15,385Receivables 1,390 958 993Inventories 1,423 920 281Other 177 94 125 --------------------------------------------------Total current assets 8,541 12,716 16,784 -------------------------------------------------- Non-current assetsProperty, plant and equipment 3,073 2,779 2,297Other 208 153 156Total non-current assets 3,281 2,932 2,453 --------------------------------------------------Total assets 11,822 15,648 19,237 -------------------------------------------------- LIABILITIESCurrent liabilitiesPayables 1,782 1,622 1,245Provisions 499 507 663 -------------------------------------------------Total current liabilities 2,281 2,129 1,908 ------------------------------------------------- Non-current liabilitiesProvisions 169 124 105 -------------------------------------------------Total non-current liabilities 169 124 105 ------------------------------------------------- Total liabilities 2,450 2,253 2,013 ------------------------------------------------- Net assets 9,372 13,395 17,224 ================================================= EQUITYContributed equity 75,786 75,722 75,639Reserves 1,419 1,033 660Accumulated losses (67,833) (63,360) (59,075) -------------------------------------------------TOTAL EQUITY 9,372 13,395 17,224 ================================================= CAP-XX LimitedStatements of changes in equity - UnauditedFor the half-year ended 31 December 2007 Consolidated Half-year 2007 Half-year 2006 Currency: Australian Dollars $ ' 000 $ ' 000 Total equity at the beginning of the half year 13,395 21,633 ------------------------------------Exchange differences on translation of foreignoperations 20 40 ------------------------------------Net (loss) recognised directly in equity 20 40 (Loss) for the half year (4,473) (4,706) ------------------------------------Total recognised income and expenses for the half year (4,453) (4,666) ------------------------------------ Transactions with equity holdersin their capacity as equityholders:Employee share options 366 206Exercise of options 64 51 ------------------------------------ 430 257 ------------------------------------Total equity at the end of the half-year 9,372 17,224 ==================================== CAP-XX LimitedCash flow statements - UnauditedFor the half-year ended 31 December 2007 Consolidated Half-year 2007 Half-year 2006 Currency: Australian Dollars $ ' 000 $ ' 000 Cash flows from operatingactivitiesReceipts from customers (inclusive of goods andservices tax) 2,303 2,411Payments to suppliers and employees (inclusive of goodsand services tax) (7,120) (6,527) ------------------------------------- (4,817) (4,116)Interest received 232 388 -------------------------------------Net cash (outflow) inflow from operating activities (4,585) (3,728) ===================================== Cash flows from investingactivitiesPayments for property, plant and equipment (672) (1,045) ------------------------------------- Net cash (outflow) inflow from investing activities (672) (1,045) ===================================== Cash flows from financingactivitiesProceeds from issue of shares 64 51 -------------------------------------Net cash inflow from financing activities 64 51 ===================================== Net increase (decrease) in cash and cash equivalents (5,193) (4,722) Cash and cash equivalents at the beginning of the half-yearyear 10,744 20,107 -------------------------------------Cash and cash equivalents at the end of the half-year year 5,551 15,385 ===================================== This general purpose interim financial report, for the half-year reportingperiod ended 31 December 2007, has been prepared in accordance with Australianequivalents to International Financial Reporting Standards (AIFRSs), otherauthoritative pronouncements of the Australian Accounting Standards Board,Urgent Issues Group Interpretations and the Corporations Act 2001. This generalpurpose interim financial report, for the half-year reporting period ended 31December 2007, is (with the exception of the figures for 30 June 2007 in theBalance Sheet) unaudited. This information is provided by RNS The company news service from the London Stock Exchange