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CAP-XX inks MoU with components company

By BFN News | 08:13 AM | Tuesday 03 February, 2015


CAP-XX has signed a mutually exclusive memorandum of understanding with a North American global tier-1 automotive components company, initially for the development of products for the North American truck market. The MoU is for the development of CAP-XX's large automotive supercapacitors for a standalone system which can serve both original equipment and aftermarket applications. CAP-XX says this represents the first commercial application for heavy duty supercapacitors produced at its Lane Cove facility since the prototype production line was launched in 2013. CAP-XX says that in terms of trading generally, supercapacitor revenues and volume have improved, with demand driven primarily by wider adoption of the group's supercapacitor technology in medical and consumer wearables, RFID/logistics support and automated meter reading. Key customer engagements in these areas include a global leader in handheld GPS devices, Nike, Roche, Debiotech, Caretech, Tunstall, Powercast and Flonidan. Murata licence revenues remain flat, although the company has received recent affirmation from Murata that it expects volumes to rise materially in the medium term. The company has continued to focus on manufacturing cost reduction, which has resulted in annualised cost savings of circa US$1m with additional savings expected in the next year. Net cash at the half year stood at A$546,000. Notwithstanding the success of the cost cutting initiatives, the Board believes that it should seek additional working capital to finance its growing order pipeline. The Board is therefore reviewing a number of funding options, including licensing its technology to third parties which would involve the receipt of up-front payments. The board will update shareholders further of any material developments in this regard. The board remains confident that trading for the 2014/15 financial year will continue to better the previous period. At 8:13am: (LON:CPX) CAPXX Ltd share price was +0.08p at 1.75p Story provided by StockMarketWire.com

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