(CPX.L) CAP-XX Ltd Buy/Sell

RNS Number : 2818I CAP-XX Limited 09 March 2010

9 March 2010

CAP-XX Limited

New Technical Collaboration with Murata

CAP-XX is pleased to announce that it has extended its technical collaboration for developing supercapacitors with Murata. The new contract signed on the 5th March 2010 will now cover surface mounted devices (SMDs) which can be mounted directly onto PCBs using reflow solder techniques. These supercapacitors are particularly suitable for high volume applications. CAP-XX will receive consideration of A$1.43m payable in four equal instalments over the next thirteen months.

Anthony Kongats, CEO of CAP-XX, commented:

"This agreement represents a further critical step towards extending sales into the leading mobile handset makers. Murata is a leading supplier to the industry and this agreement will facilitate adoption of our supercapacitor technology for mass market handsets."

For further information contact:

Anthony Kongats, Chief Executive Officer +61 (0)2 9428 0139

Kreab Gavin Anderson (Financial PR)
Robert Speed / Anthony Hughes +44 (0) 20 7074 1800

Seymour Pierce (Nominated Adviser and Broker)
Nandita Sahgal +44 (0) 20 71078000

More information about CAP-XX 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 power management systems, predominantly for space constrained 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 space constrained electronic devices, including mobile phones and solid state drives.

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.

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

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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 +61 (0) 2 9428 0139

Kreab Gavin Anderson (Financial PR)

Robert Speed +44 (0) 20 7074 1800

Seymour Pierce Ltd (Nominated Adviser and Broker)

Nandita Sahgal +44 (0) 20 7107 8000

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 2nd 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 Half-year

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 804,414 2,209,203

services
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 (2,053,857) (1,549,469)

Limited
Earnings per share for (loss) attributable Cents Cents

to the ordinary equity holders of the company
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 30 June 31 December 2008

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

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

Current liabilities
Payables 861,391 1,189,678 1,815,839
Other - deferred service 1,315,552 2,894,215 1,315,552

revenue
Progress payments - Sale of 699,405

plant
Provisions 401,187 409,644 526,275
3,277,535 4,493,537 3,657,666

Total current liabilities Non-current liabilities
Other - deferred service - - 3,157,325

revenue
Provisions 176,943 158,520 186,196
Total non-currentliabilities 176,943 158,520 3,343,521

Totalliabilities 3,454,478 4,652,057 7,001,187

Net assets 1,356,120 3,096,883 1,442,736

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 Half-year

Currency: Australian Dollars $ ' 000 $ ' 000

Total equity at the beginning of the 3,096,883 2,580,232

half year
Exchange differences on translation of 103,611 45,980

foreign operations
Net (loss)recogniseddirectly in equity 103,611 45,980
(Loss) for the half year (2,053,857) (1,549,469)
Totalrecognisedincome and expenses for (1,950,246) (1,503,489)

the half year 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 Half-year

Currency: Australian Dollars $ ' 000 $ ' 000

Cash flows from operating activities
Receipts from customers (inclusive 1,284,203 5,778,359

of goods and services tax)
Payments to suppliers and (3,895,370) (7,898,289)

employees (inclusive of goods and services tax)
(2,611,167) (2,119,930)
Interest received 12,712 42,036
Net cash (outflow) inflow from (2,598,455) (2,077,894)

operating activities Cash flows from investing activities
Payments for property, plant and (12,510) (837,941)

equipment

Net cash (outflow) inflow from (12,510) (837,941)

investing activities

Cash flows from financing activities
Proceeds from issue of shares - -
Net cash inflow from financing - -

activities
Net increase (decrease) in cash (2,610,965) (2,195,835)

and cash equivalents
Cash and cash equivalents at the 4,060,241 3,481,060

beginning of the half-year year
Cash and cash equivalents at the 1,449,276 565,225

end of the half-year year

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.

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

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