Half Yearly Report

RNS Number : 0747I

CAP-XX Limited

04 March 2010

 



 

 

4th March 2010

 

CAP-XX Limited ("CAP-XX" or the "Company")

Interim Results for the half-year ended 31 December 2009

  Financial Highlights

·      Sales revenue of A$2.6m was down due to the timing of the Murata R&D Feasibility payments and drop in reduced volumes.

·      Operating expenses of A$2.4m was a 40% decreases on the corresponding period of 2008/09.

·      Net Operating Loss of A$2.1m was negatively impacted by foreign exchange losses due to the strengthening Australian dollar.

·      Cash Balance as at the end of December 2009 was A$1.45m

Operational Highlights

·      Murata remain on track with their supercapacitor production line to be operational by April 2010.

·      Plant transferred from Lane Cove to Nationgate in final stages of commissioning

·      CAP-XX order book is strengthening with an increase in customer inquiries and new design wins fast approaching the manufacturing stage

·      Murata's R&D Agreement has been agreed and is in the process of being signed.

Anthony Kongats, CEO of CAP-XX said

"CAP-XX has made considerable progress in building the foundations for the ramp up of production of its supercapacitor products. Murata remain on schedule with their manufacturing line, Nationgate a second contract manufacturer will be operational within the next month and the development of new products and markets are beginning to pay dividends as customers orders are on the increase. CAP-XX remains committed to the development of supplementary and new products in emerging markets.

For further information contact:

CAP-XX

Anthony Kongats, Chief Executive Officer                        [phone]

Kreab Gavin Anderson (Financial PR)

Robert Speed                                                                [phone]

Seymour Pierce Ltd (Nominated Adviser and Broker)

Nandita Sahgal                                                              [phone]

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 supercapacitors and energy management systems, predominantly for portable electronic devices.

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 form design.  These attributes will be critical for the next generation of high volume, power-hungry portable electronic devices, including mobile phones.

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 devices and portable devices.

Chairman's Review

Business overview

During the last six months CAP-XX has focused on consolidating its manufacturing and operational foundation in order to position itself for the recovery of the electronics market. The manufacturing initiatives surrounding Murata and Nationgate progressed steadily while operating costs were reduced as committed.

Murata is finalising the commissioning of their manufacturing line and as a result of a strong sales program, first sales are expected in quarter 2, 2010. This will lead to the commencement of royalties for CAP-XX. The proposed R& D Agreement has the major issues agreed and is in the formal approval and signing process by both parties. Execution of this Agreement will generate additional receipts for CAP-XX

In Malaysia, Nationgate continue to make progress with the commissioning of the acquired plant and machinery from CAP-XX's Lane Cove facility and remains on track to have this completed  and in operation by the 2^nd Quarter  2010. We plan that Polar Twin Advance will continue as a contract manufacturer and together with Nationgate will provide CAP-XX with the necessary long term manufacturing flexibility to satisfy current demand and the opportunity to increase capacity as demand increases.

Reported sales revenue of A$2.6m was down 41%, however the primary contributor was the timing of the Murata payments. Prior year's figures included the Murata research and development feasibility payments totalling A$1.4m.  Sales volume remained constrained by the global economic crisis but was partially offset by an increase in average selling prices. In recent months order and customer enquiries are showing signs of strengthening and are returning towards the levels that the business experienced pre-crisis. This strengthening appears to be due to an increase in general customer market confidence coupled with initial orders from new market opportunities, especially in the Solid State Drive field. The timing of the Nationgate commissioning will be important in delivering the expected near term order flow. 

Pleasingly, the company's operating expenses continue to fall with the expenditure of $2.4m for the half representing a 40% decrease from the prior year. This has been achieved by significantly reducing the headcount and associated cost base due to the relationship with Murata and transfer of the remaining assembly production to Malaysia. The strong Australian Dollar has had a negative impact on the overall result due to US Dollars and Sterling that were periodically held during the period. 

I am pleased to report that significant progress has been made by the CAP-XX management team over the last six months and with improving markets coupled with Murata and Nationgate coming on line, the outlook is encouraging. The 2010 calendar year should see the completion of this operational reconstruction and allow management to focus more on growing the business off a stable product, manufacturing and operational base.

CAP-XX Limited

Income statement - Unaudited

For the half-year ended 31 December 2009

		Consolidated
		Half-year  2009	Half-year 2008
Currency: Australian Dollars		$ ' 000	$ ' 000
Revenue from sale of goods and services		2,617,349	4,441,460
Cost of sale of goods and services		(1,812,935)	(2,232,257)
Gross margin (loss) on sale of goods and services		804,414	2,209,203
Other income		12,712	42,036
General and administrative expenses		(1,135,562)	(1,709,076)
Process and engineering expenses		(354,314)	(508,098)
Selling and marketing expenses		(127,210)	(807,211)
Research and development expenses		(769,086)	(959,700)
Foreign exchange gains/(losses)		(454,353)	257,783
Other expenses		(30,458)	(74,406)
(Loss) before income tax		(2,053,857)	(1,549,469)
Income tax benefit/(expense)		-
Net (loss) for the half year		(2,053,857)	(1,549,469)
(Loss) attributable to members of CAP-XX Limited		(2,053,857)	(1,549,469)
Earnings per share for (loss) attributable to the ordinary equity holders of the company		Cents	Cents
Basic earnings per share		(3.3)	(3.2)
Diluted earnings per share		(3.3)	(3.2)

CAP-XX Limited

Balance sheet - Unaudited

As at 31 December 2009

		Consolidated	Consolidated	Consolidated
		31 December 2009	30 June 2009	31 December 2008
Currency: Australian Dollars		$ ' 000	$ ' 000	$ ' 000
ASSETS
Current assets
Cash and cash equivalents		1,449,276	4,060,241	565,225
Receivables		444,477	293,218	3,960,038
Inventories		1,074,681	1,455,715	1,308,667
Other		312,625	36,195	191,432
Total current assets		3,281,059	5,845,369	6,025,362
Non-current assets
Property, plant and equipment		1,321,306	1,695,338	2,210,328
Other		208,233	208,233	208,233
Total non-current assets		1,529,539	1,903,571	2,418,561
Total assets		4,810,598	7,748,940	8,443,923
LIABILITIES
Current liabilities
Payables		861,391	1,189,678	1,815,839
Other - deferred service revenue		1,315,552	2,894,215	1,315,552
Progress payments - Sale of plant		699,405
Provisions		401,187	409,644	526,275
Total current liabilities		3,277,535	4,493,537	3,657,666
Non-current liabilities
Other - deferred service revenue		-	-	3,157,325
Provisions		176,943	158,520	186,196
Total non-current liabilities		176,943	158,520	3,343,521
Total liabilities		3,454,478	4,652,057	7,001,187
Net assets		1,356,120	3,096,883	1,442,736
EQUITY
Contributed equity		78,906,340	78,906,340	75,786,603
Reserves		2,569,478	2,244,733	2,145,762
Accumulated losses		(80,119,698)	(78,054,190)	(76,489,629)
TOTAL EQUITY		1,356,120	3,096,883	1,442,736

CAP-XX Limited

Statements of changes in equity - Unaudited

For the half-year ended 31 December 2009

		Consolidated
		Half-year  2009	Half-year 2008
Currency: Australian Dollars		$ ' 000	$ ' 000
Total equity at the beginning of the half year		3,096,883	2,580,232
Exchange differences on translation of foreign operations		103,611	45,980
Net (loss) recognised directly in equity		103,611	45,980
(Loss) for the half year		(2,053,857)	(1,549,469)
Total recognised income and expenses for the half year		(1,950,246)	(1,503,489)
Transactions with equity holders in their capacity as equity holders:
Employee share options		209,483	365,993
Exercise of options		-	-
		209,483	365,993
Total equity at the end of the half-year		1,356,120	1,442,736

CAP-XX Limited

Cash flow statements - Unaudited

For the half-year ended 31 December 2009

		Consolidated
		Half-year  2009	Half-year 2008
Currency: Australian Dollars		$ ' 000	$ ' 000
Cash flows from operating activities
Receipts from customers (inclusive of goods and services tax)		1,284,203	5,778,359
Payments to suppliers and employees (inclusive of goods and services tax)		(3,895,370)	(7,898,289)
		(2,611,167)	(2,119,930)
Interest received		12,712	42,036
Net cash (outflow) inflow from operating activities		(2,598,455)	(2,077,894)
Cash flows from investing activities
Payments for property, plant and equipment		(12,510)	(837,941)
Net cash (outflow) inflow from investing activities		(12,510)	(837,941)
Cash flows from financing activities
Proceeds from issue of shares		-	-
Net cash inflow from financing activities		-	-
Net increase (decrease) in cash and cash equivalents		(2,610,965)	(2,195,835)
Cash and cash equivalents at the beginning of the half-year year		4,060,241	3,481,060
Cash and cash equivalents at the end of the half-year year		1,449,276	565,225

This general purpose interim financial report, for the half-year reporting period ended 31 December 2009, 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 2009, is (with the exception of the figures for 30 June 2009 in the Balance Sheet) unaudited.

 

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