CAP-XX Limited
("CAP-XX" or the "Company")
MoU signed with Tier-1 Automotive components company and trading update
CAP-XX is pleased to announce that is has signed a mutually exclusive MoU 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. This represents the first commercial application for heavy duty supercapacitors produced at the Company's Lane Cove facility since the prototype production line was launched in 2013.
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 license 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 AUD$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.
Anthony Kongats, CAP-XX Chief Executive said: "We are delighted to have agreed this MoU which will launch our large supercapacitor technology initially into the North American truck market. This market represents a significant opportunity for CAP-XX, as well a platform to demonstrate wider automotive applications. We are also pleased to report improved trading in supercapacitors for small portable devices, as traction for the Group's technology increases. A number of other opportunities exist which the Board hopes CAP-XX will be well positioned to exploit."
For further information, please contact:
CAP-XX Limited Anthony Kongats (Chief Executive Officer) |
+61 (0) 2 9428 0139 |
Cenkos SecuritiesStephen Keys/Mark Connelly (Corporate Finance) |
+44 (0) 20 7397 1949 |
Kreab Gavin Anderson & Company Robert Speed (Financial PR) |
+44 (0) 20 7074 1800 |
Notes to editors
About CAP-XX
CAP-XX (LSE:CPX) is a world leader in the design and manufacture of thin, flat supercapacitors and energy management systems used in portable and small-scale electronic devices, and to an increasing extent, in larger applications such as automotive and renewable energy. The unique feature of CAP-XX supercapacitors is their very high power density and high energy storage capacity in a space-efficient prismatic package. These attributes are essential in power-hungry consumer and industrial electronics, and deliver similar benefits in automotive and other transportation applications. For more information about CAP-XX, visit www.cap-xx.com.
