CAP-XX Limited - Interim Results

RNS Number:1009R
CAP-XX Limited
31 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 advanced
its relationships with the leading mobile handset manufacturers since listing on
AIM. The securing of a partnership agreement, announced last week, will enable
us to expand capacity to meet the demands of our target markets whilst reducing
execution risk in the widespread adoption of our supercapacitor product."

For further information contact:

CAP-XX
Anthony 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 the
subsequent period, CAP-XX has achieved key milestones in the execution of its
strategy to become a significant supplier to the hand held mobile device
markets. It has also shown steady growth in its sales and operations over the
reporting period.

CAP-XX's strategy has been to develop relationships with mobile phone
manufacturers that will lead to them designing the CAP-XX supercapacitors into
their products. At the same time it has needed to provide the manufacturing
credibility to ensure that it can deliver large volumes of reliable high quality
devices to fulfil customer requirements.

Relationships with key departments of the top five mobile phone manufacturers
have been deepened and three well known suppliers are now providing integrated
circuits for applications such as camera flash and power management integrating
CAP-XX supercapacitors. This is a significant enabling step for mobile phone
manufactures to implement solutions incorporating our supercapacitors.

The next milestone has been the signing of a letter of intent for a partnership
agreement with Murata Manufacturing Company which will offer confidence to
customers that supercapacitors can be shipped to them in quantity and quality.
Murata is a world leading supplier of electronic components to the mobile
handset (as well as many other) industries. The agreement with Murata has
"de-risked" the Company as a supplier and therefore strengthens the long term
future of our Company.

The Company's engineers have made steady development progress to support the
requirements of the mobile phone markets. Product specifications have been
sharpened and manufacturing equipment designed and ordered to manufacture these
products. This equipment will be installed and commissioned midyear which will
enable the initial production of devices for the mobile phone markets into the
second half of the year. A new range of higher temperature, higher voltage
supercapacitors also entered production during the half.

Sales growth during the half ended 31 December, 2007 grew 25% in US dollar terms
but rose 10% in Australian dollar terms. Several new customers were obtained
notably in vehicle tracking systems and specialised radio applications.

I am also pleased to advise that we have welcomed Michael Taylor to the CAP-XX
team. Michael is a very experienced financial executive and has taken the role
of Chief Financial Officer.

Like many "small cap" companies in the current environment, we do not think that
the movement in the Company's share price reflects the positive operational and
business development progress of the Company. As operational and partnership
development have underpinned the Company's progress we have no immediate plans
to raise capital in the current financial market.

The CEO and his team have made excellent progress over the reporting period
despite an unhelpful environment.

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, such as PDAs and PCMCIA cards.

CAP-XX Limited
Income statement - Unaudited
For 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 2,384
Cost 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 Cents
attributable to the ordinary
equity holders of the company
Basic earnings per share (9.1) (9.7)

Diluted earnings per share (9.1) (9.7)

CAP-XX Limited
Balance sheet - Unaudited
As at 31 December 2007

Consolidated Consolidated Consolidated
31 December 2007 30 June 2007 31 December 2006

Currency: Australian $ ' 000 $ ' 000 $ ' 000
Dollars

ASSETS
Current assets
Cash and cash
equivalents 5,551 10,744 15,385
Receivables 1,390 958 993
Inventories 1,423 920 281
Other 177 94 125
--------------------------------------------------
Total current assets 8,541 12,716 16,784
--------------------------------------------------

Non-current assets
Property, plant and
equipment 3,073 2,779 2,297
Other 208 153 156
Total non-current assets 3,281 2,932 2,453
--------------------------------------------------
Total assets 11,822 15,648 19,237
--------------------------------------------------

LIABILITIES
Current liabilities
Payables 1,782 1,622 1,245
Provisions 499 507 663
-------------------------------------------------
Total current
liabilities 2,281 2,129 1,908
-------------------------------------------------

Non-current liabilities
Provisions 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
=================================================

EQUITY
Contributed equity 75,786 75,722 75,639
Reserves 1,419 1,033 660
Accumulated losses (67,833) (63,360) (59,075)
-------------------------------------------------
TOTAL EQUITY 9,372 13,395 17,224
=================================================

CAP-XX Limited
Statements of changes in equity - Unaudited
For 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 foreign
operations 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 holders
in their capacity as equity
holders:
Employee share options 366 206
Exercise of options 64 51
------------------------------------
430 257
------------------------------------
Total equity at the end of the
half-year 9,372 17,224
====================================

CAP-XX Limited
Cash flow statements - Unaudited
For the half-year ended 31 December 2007

Consolidated
Half-year 2007 Half-year 2006

Currency: Australian Dollars $ ' 000 $ ' 000

Cash flows from operating
activities
Receipts from customers
(inclusive of goods and
services tax) 2,303 2,411
Payments to suppliers and
employees (inclusive of goods
and 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 investing
activities
Payments for property, plant
and equipment (672) (1,045)
-------------------------------------

Net cash (outflow) inflow from
investing activities (672) (1,045)
=====================================

Cash flows from financing
activities
Proceeds 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-year
year 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 reporting
period ended 31 December 2007, 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 2007, is (with the exception of the figures for 30 June 2007 in the
Balance Sheet) unaudited.

This information is provided by RNS
The company news service from the London Stock Exchange

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