2nd Quarter & Interim Results

Zen Research PLC 15 August 2000 Zen Research plc announces second quarter and interim results for the six months ended 30 June 2000 Zen Research plc ('Zen' or the 'Company'), the developer and licensor of Multibeam True-X technology for use in production of high-performance components for DVD and CD drives, today announces results for the second quarter ended 30 June 2000. The results are for the period prior to the Company's initial public offering (IPO) on the London Stock Exchange on 3 July 2000, and do not reflect the impact of the amounts raised in the offering. Highlights * Financial results on track * Research and development of DVD multi-beam technology continues to move ahead as planned * Successful IPO in July raised approximately US$98 million net of expenses Emil Jachmann, Chief Executive of Zen Research plc said: 'We were very pleased with the support and interest we received during the recent roadshow for our IPO and during the month since we became a public company. 'We continue to invest in research and development to advance Zen technology as an industry solution for high performance DVD and CD drives. The Company now has the financial capability to expand and we should be able to accelerate our technology development with the goal of increasing our base of international licensing partners.' For further information: Zen Research Emil Jachmann, David Aber Tel: 0044 20 7353 9203 Bell Pottinger Financial Matthew Moth Tel: 0044 20 7353 9203 www.zenresearch.com Given the proximity to the recent roadshow, IPO and listing, no formal presentation will be made on this occasion. However, going forward, Zen intends to make formal presentations of its financial results in London on a quarterly basis. The management team is in London today and will be available at the above telephone numbers to answer any questions. FINANCIAL COMMENTARY On 3 July 2000, Zen Research plc floated on the London Stock Exchange raising approximately £54 million (US$81 million) after expenses. Subsequent to the initial float, the Company sold an additional 8.3 million Ordinary Shares for approximately £11 million (US$17 million), which were subject to the Underwriters' Option. The total net proceeds from the floatation were approximately £65 million (US$98 million). These financial results represent our first such announcement as a publicly traded company. Turnover Turnover for the three and six month periods ended 30 June 2000 represent royalty income received under a licence agreement with a single licencee for CD ROM technology only. Turnover for the three and six month periods ended 30 June 1999 represents the sale of CD-ROM ASICs (Application Specific Integrated Circuits) which were made prior to the conversion of the Company's business model. During mid 1999, the Company converted from a business model which recognised turnover from the direct sale of CD-ROM ASIC's, to its current business model in which the Company is primarily engaged in product design and development of technology which is licenced for use in the production of high-performance components for CD and DVD optical storage devices. Research and development Research and development expenses increased during the three and six month periods ended 30 June 2000 compared to the corresponding prior year period due to the increase in headcount and related expenses and expenditures on outside engineering services to develop and enhance the Company's intellectual property. Other operating expenses Other net operating expenses for the three and six month periods ended 30 June 2000 compared to the corresponding prior year periods decreased due to the Company's change in business model as discussed above. The reduction in costs during this period reflects the decrease in headcount and related expenses deployed in field operations, which had been important to support the prior business model. Cash on hand increased at 30 June 2000 compared to 31 December 2000 due to the issuance of preferred stock to several investors and the exercise of options for Ordinary shares. Proceeds from these issuances were partially used to reduce the outstanding amount due to creditors falling due within one year. Cash on hand at 30 June 2000 does not include the proceeds from the Company's IPO on the London Stock Exchange which took place on 3 July 2000, after the end of this reporting period. OVERVIEW AND STRATEGY Zen designs, develops and licences its technology and intellectual property for use in production of high performance components for CD and DVD optical storage devices. Through the use of proprietary advances in optics, ASIC designs and firmware development, Zen believes that its technology significantly enhances the performance of optical drives. Zen's overall objective is to establish its technology as a leading industry solution in optical storage devices. For its next generation of DVD optical storage technology, Zen intends to continue establishing strategic relationships with leading semiconductor manufacturers, for the development of DVD-ROM ASICs; with leading optical component makers, for the development of optical pick-up elements; and with leading drive makers, for the development and manufacture of optical disk drives. Zen has structured its technology and intellectual property licences to receive royalties on the sale or transfer of components that contain Zen intellectual property. Zen intends to work to build the value of its designs and relationships with its licencees so that components and drives containing Zen technology achieve strong sales, thus creating and sustaining its royalty receipts. To this end, Zen seeks to: * Provide High Performance Technology Solutions * Target Leading Optical Storage Device Manufacturers * Sign Additional Licence Agreements to Provide Multiple Sources for Zen Components * Leverage Partner Alliances Zen Research plc Results for the quarter and half year ended 30 June 2000 Consolidated profit and loss accounts Quarter ended 6 months ended 30 June 30 June 2000 1999 2000 1999 Unaudited Unaudited US$ '000 US$ '000 Turnover 33 6 120 6 Cost of sales - 5 - 5 -------- -------- -------- -------- Gross profit 33 1 120 1 Research and Development (1,982) (1,513) (3,577) (2,594) Other net operating expenses (1,085) (1,611) (1,973) (3,258) -------- -------- -------- -------- Operating expenses (3,067) (3,124) (5,550) (5,852) Loss on ordinary activities before interest and taxation (3,034) (3,123) (5,430) (5,851) Net interest payable (277) (94) (586) (237) -------- -------- -------- -------- Loss on ordinary activities before taxation (3,311) (3,217) (6,016) (6,088) Taxation on ordinary activities (60) (52) (75) (72) -------- -------- -------- -------- Loss on ordinary activities after taxation (3,371) (3,269) (6,091) (6,160) ======== ======== ======== ======== Basic loss per share (US dollars) (0.03) (0.05) (0.06) (0.09) ======== ======== ======== ======== Weighted Average Ordinary Shares 107,893,038 70,545,928 103,189,803 68,709,386 ======== ======== ======== ======== The Company has no recognised gains and losses other than those contained within the profit and loss account and therefore no separate statement of total recognised gains and losses has been presented. Zen Research plc Consolidated balance sheet 30 June 31 December 30 June 2000 1999 1999 Unaudited Audited Unaudited US$ '000 US$ '000 US$ '000 Fixed assets Intangible assets 373 548 723 Tangible assets 1,398 1,522 1,655 -------- -------- -------- 1,771 2,070 2,378 Current assets Debtors - due after more than one year 1,380 2,244 1,698 Debtors - due within one year 231 157 457 -------- -------- -------- 1,611 2,401 2,155 Cash at bank and in hand 5,573 90 577 -------- -------- -------- 7,184 2,491 2,732 Creditors - Amounts falling due within one year (8,704) (10,490) (9,879) -------- -------- -------- Net current liabilities (1,520) (7,999) (7,147) -------- -------- -------- Total assets less current liabilities 251 (5,929) (4,769) Creditors - Amounts falling due after more than one year (317) (384) (312) -------- -------- -------- Net liabilities (66) (6,313) (5,081) -------- -------- -------- Capital and reserves Called up share capital 886 642 475 Additional paid-in capital 45,937 33,843 29,386 Other reserves 732 732 732 Profit and loss account (47,621) (41,530) (35,674) -------- -------- -------- Total shareholders' funds (66) (6,313) (5,081) ======== ======== ======== Zen Research plc Consolidated cash flow statement Quarter ended 6 months ended 30 June 30 June 2000 1999 2000 1999 Unaudited Unaudited US$ '000 US$ '000 Net cash outflow from operating activities (3,503) (1,341) (5,387) (3,716) Returns on investment and servicing of finance 28 (95) (210) (152) Capital investment and financial investment (225) (84) (297) (213) Management of liquid resources -- -- (100) -- Financing 8,416 32 12,522 42 ------- ------- ------- ------- (Decrease)/increase in cash 4,716 (1,488) 6,528 (4,039) ======= ======= ======= ======= Notes to the Interim Financial Statements of Zen Research plc 1. Basis of preparation The interim financial statements have been prepared on the accounting policies set out in the accountants' report included with the Company's listing particulars dated 26 June 2000. The financial information has been prepared under the historical cost convention and in accordance with accounting standards applicable in the United Kingdom. 2. Loss per share Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period. Convertible preferred shares have been included for all periods in the calculation of basic loss per share on the basis that all the convertible preferred shares were converted to ordinary shares and are outstanding for all periods presented. In calculating loss per share, no adjustment has been made for share options granted and warrants for purchase of ordinary shares, as the effect would be to reduce the loss per Ordinary Share. 3. Post balance sheet events On 3 July 2000, the Company listed on the London Stock Exchange through an institutional placing of 55.2 million Ordinary Shares at the issue price of 150 pence. The Company raised approximately £54 million (US$81 million) after expenses. Subsequent to the initial float, the Company sold an additional 8.3 million Ordinary Shares for approximately £11 million (US$17 million), which were subject to the Underwriters' Option. The total net proceeds from the flotation were approximately £65 million (US$98 million). The financial information contained in this announcement does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The Company was incorporated 30 December 1999, and no statutory accounts have yet been required to be prepared and delivered to the Registrar of Companies by the Company.

Companies

Zenith Energy LTD.Com Shs NPV (DI) (ZEN)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today