Half Yearly Report

RNS Number : 1879B

CAP-XX Limited

14 February 2011

 



14 February 2011

 

CAP-XX Limited

Interim Results for the half-year ended 31 December 2010

CAP-XX Limited, a world leader in the design and manufacture of revolutionary thin-form supercapacitors, which considerably extend the performance of batteries in small portable devices, announces its interim results for the half-year ended 31 December 2010.

 Financial Highlights

·      Total Revenue of A$1.5 million (2009: AUD$2.6 million), the reduction reflecting Murata payments which were received in prior reporting periods.

·      Product sales increased 15% on a year to year basis while average selling prices increased 4%

·      Cash reserves of A$3.0m at the period end

Operational Highlights

·      Murata commenced customer shipments in January 2011

·      Strong acceptance of technology from leading video and camera manufacturers

·      Nationgate to double its manufacturing capacity by end of March 2011

·      Polar Twin Advance addressing previous yield issues with promising results

·      CAP-XX Surface Mount Device (SMD) project progressing to plan

·      Sales in the second half of the year have started strongly

Anthony Kongats, CEO of CAP-XX said:

"The half year has seen us address the challenges of bringing supercapacitor volumes to the levels necessary to service the immediate demands for adoption in volume devices.  Murata and our manufacturing partners are now shipping product for leading manufacturers in many different markets.  We are excited by the prospect of large scale uptake of our supercapacitor technology for portable devices."

For further information contact:

CAP-XX Anthony Kongats, Chief Executive Officer	[phone]
Kreab Gavin Anderson & Company (Financial PR) Robert Speed / Deborah Walter   / Anthony Hughes	[phone]
Seymour Pierce Ltd (Nominated Adviser and Broker) David Banks, Nandita Sahgal	[phone]

More information is available at www.cap-xx.com

Notes to Editors:

CAP-XX supercapacitors have a compact, thin form design and can store higher volumes of energy and output higher power levels than competing supercapacitor products. These attributes are critical for current and future generation electronic devices, such as mobile phone cameras with a quality flash photography capability and high quality audio capabilities. Other applications include mobile phone and solid state disk 9SSD) power management, mobile phone accessories, digital still cameras, energy harvesting systems, e-books, portable drug delivery systems, wireless sensors, uninterrupted power supplies, plant condition monitors, toll tags and location tracking devices. Longer term, as the market for fuel cell systems develops, supercapacitors can be used to support modulated output for fuel cell systems.

Chairman's Review

Business overview

Over the past six months management has remained focused on building up the manufacturing capacity, whilst driving sales and new product development.  Good progress has been made on each of these key factors as the Company continues to build a solid foundation for the future.

The Board visited licencee Murata in Kyoto, in early December, to meet and discuss the ongoing relationship with CAP-XX and to gain an insight on the status of Murata's order book and plans for product shipment. Murata subsequently advised that customer shipments anticipated  in December were actually shipped at the beginning of January. Murata advised that they planned  future volumes to methodically increase as the production line was hardened and actual customer drawdown rate became evident .  CAP-XX will receive its first royalty remittance from Murata in Quarter 2 of the current calendar year. The R&D Agreement with Murata remains on track with the final payment to be received when the final report is provided by CAP-XX to Murata in the middle of the current year.

Operational performance from our contract manufacturers was mixed over the past six month with output impacted by  key staff changes, raw material shortages and delayed commissioning delaying shipment to customers. I am pleased to report that the last two months has seen a noticeable increase in yield, output and efficiency from both contractors. In addition Nationgate are in the final stages of commissioning their second  line which will double their current capacity. It is forecast that this second line will be fully operational by the end of the current quarter.

While reported sales revenue of A$1.5m was down 44%, this decrease was due to the timing and treatment of the receipt of past Murata payments.  Actual unit  volumes were up 15% on a year on year basis whilst our average selling price increased by 4% leading to a 20% increase in product sales in dollar terms.  Due to the improved manufacturing performance from our contract manufacturers, sales in the new calendar year are currently running at a substantially higher rate than that achieved in the first six months. As highlighted in the 2010 Annual Report, the order book remains strong and new application enquiries are also on the increase.  Cash reserves are A$3.0m as at the end of December 2010.

We expect capacity from our Malaysian manufacturing partners to match demand this half and for sales to show good growth.

Michael Quinn

Chairman

Feb 14^th 2011

CAP-XX Limited

Income statement - Unaudited

For the half-year ended 31 December 2010

		Consolidated
		Half-year        2010	Half-year        2009
Currency: Australian Dollars		$ ' 000	$ ' 000
Revenue from sale of goods and services		1,466,526	2,617,349
Cost of sale of goods and services		(1,513,050)	(1,812,935)
Gross margin (loss) on sale of goods and services		(46,524)	804,414
Other income		157,000	12,712
Other revenue		58,995	0
General and administrative expenses		(1,179,636)	(1,135,562)
Process and engineering expenses		(150,531)	(354,314)
Selling and marketing expenses		(199,290)	(127,210)
Research and development expenses		(643,035)	(769,086)
Foreign exchange gains/(losses)		(302,524)	(454,353)
Other expenses		(10,972)	(30,458)
(Loss) before income tax		(2,316,517)	(2,053,857)
Income tax benefit/(expense)		-	-
Net (loss) for the half year		(2,316,517)	(2,053,857)
(Loss) attributable to members of CAP-XX Limited		(2,316,517)	(2,053,857)
Earnings (loss) per share attributable to the ordinary equity holders of the company		Cents	Cents
Basic earnings per share		(3.4)	(3.3)
Diluted earnings per share		(3.4)	(3.3)

CAP-XX Limited

Balance sheet - Unaudited

As at 31 December 2010

		Consolidated
		31 December 2010	30 June 2010	31 December 2009
Currency: Australian Dollars		$ ' 000	$ ' 000	$ ' 000
ASSETS
Current assets
Cash and cash equivalents		3,015,613	4,113,970	1,449,276
Receivables		289,401	368,906	444,477
Inventories		1,120,424	1,031,873	1,074,681
Other		149,503	58,448	312,625
Total current assets		4,574,941	5,573,197	3,281,059
Non-current assets
Property, plant and equipment		993,122	981,230	1,321,306
Other		208,233	208,233	208,233
Total non-current assets		1,201,355	1,189,463	1,529,539
Total assets		5,776,296	6,762,660	4,810,598
LIABILITIES
Current liabilities
Payables		1,049,013	1,157,646	861,391
Other -deferred service revenue		-	-	1,315,552
Progress payments - Sale of Plant		713,316	1,149,653	699,405
Provisions		626,739	531,949	401,187
Total current liabilities		2,389,068	2,839,248	3,277,535
Non-current liabilities
Provisions		65,529	119,441	176,943
Progress payments - Sale of Plant		1,426,632	-	-
Total non-current liabilities		1,492,161	119,441	176,943
Total liabilities		3,881,229	2,958,689	3,454,478
Net assets		1,895,067	3,803,971	1,356,120
EQUITY
Contributed equity		81,878,750	81,878,750	78,906,340
Reserves		2,899,357	2,491,744	2,569,478
Accumulated losses		(82,883,040)	(80,566,523)	(80,119,698)
TOTAL EQUITY		1,895,067	3,803,971	1,356,120

CAP-XX Limited

Statements of changes in equity - Unaudited

For the half-year ended 31 December 2010

		Consolidated
		Half-year    2010	Half-year 2009
Currency: Australian Dollars		$ ' 000	$ ' 000
Total equity at the beginning of the half year		3,803,971	3,096,883
Exchange differences on translation of foreign operations		179,613	103,611
Net (loss) recognised directly in equity		179,613	103,611
(Loss) for the half year		(2,316,517)	(2,053,857)
Total recognised income and expenses for the half year		(2,136,904)	(1,950,246)
Transactions with equity holders in their capacity as equity holders:
Employee share options		228,000	209,483
Exercise of options		-	-
		228,000	209,483
Total equity at the end of the half-year		1,895,067	1,356,120

CAP-XX Limited

Cash flow statements - Unaudited

For the half-year ended 31 December 2010

		Consolidated
		Half-year        2010	Half-year  2009
Currency: Australian Dollars		$ ' 000	$ ' 000
Cash flows from operating activities
Receipts from customers (inclusive of goods and services tax)		2,842,357	1,284,203
Payments to suppliers and employees (inclusive of goods and services tax)		(3,926,419)	(3,895,370)
		(1,084,062)	(2,611,167)
Interest received		58,995	12,712
Net cash (outflow) inflow from operating activities		(1,025,067)	(2,598,455)
Cash flows from investing activities
Payments for property, plant and equipment		(73,290)	(12,510)
Net cash (outflow) inflow from investing activities		(73,290)	(12,510)
Cash flows from financing activities
Proceeds from issue of shares		-	-
Net cash inflow from financing activities		-	-
Net increase (decrease) in cash and cash equivalents		(1,098,357)	(2,610,965)
Cash and cash equivalents at the beginning of the half-year year		4,113,970	4,060,241
Cash and cash equivalents at the end of the half-year year		3,015,613	1,449,276

This general purpose interim financial report, for the half-year reporting period ended 31 December 2010, 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 2010, is (with the exception of the figures for 30 June 2010 in the Balance Sheet) unaudited.

 

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