CAP-XX Limited Trading Update (2660W)
April 16 2019 - 2:00AM
UK Regulatory
TIDMCPX
RNS Number : 2660W
CAP-XX Limited
16 April 2019
16 April 2019
CAP-XX Limited
("CAP-XX" or the "Company")
Trading Update
CAP-XX Limited, a world leader in the design and manufacture of
thin, prismatic supercapacitors and energy management systems,
today announces a trading update in respect of its recent
activities.
CAP-XX to open European office
Over the last few quarters, CAP-XX has achieved success in
securing orders for the supply of supercapacitors to Tier-1
component suppliers to the global automotive industry. In order to
strengthen its relationships in this increasingly important
segment, the Company has appointed Marco Ranalli to lead CAP-XX's
European business strategy serving the specialist demands of the
automotive industry as well as the internet of things (IoT). Mr
Ranalli was most recently Global Director of Gentherm's Battery
Systems Business Unit and has over 20 years' experience in the
automotive markets. Gentherm is a NASDAQ listed automotive supply
company. Mr Ranalli will also evaluate the potential benefits of
establishing a local engineering and new business centre in Germany
and in the meantime will work alongside CAP-XX's European
distributor network to develop supercapacitor solutions to meet the
specific demands of the automotive sector.
Pipeline and licensing activity
CAP-XX is continuing to receive record interest in its expanded
range of supercapacitors, notably for applications relating to the
IoT. The range of markets where enquiries are at record levels
include Automotive (non power train). Enquiries are also at a high
level for customers in the IoT (Wireless, Track & Trace
applications), and Smart Meter industries. There has been some
softening in demand from manufacturers of Wearable Technologies. It
is clear that the slowdown in vehicle demand has not affected
demand for the Company's products in the informatics and other low
energy automotive applications, although the time to market for
developing large cells for vehicle motive power and storage
applications has slowed, with the result that CAP-XX has rebalanced
its immediate-term focus around small cell automotive applications.
The Company's previously announced sales to Spire have not been
followed up with new orders, as Spire has been impacted by trade
tariffs into the US. Spire has repositioned its device from the
sports leisure market to the professional medical market in order
to sustain a higher price point.
CAP-XX's current licensees include Murata, AVX and TDK. The
Company remains in active discussions with a small group of
potential further licensees in addition to a similar number of
discussions which are at a less advanced stage. Most of these
potential licensees are international component makers and
companies focused on the energy storage markets. It is not possible
to be precise on the timing of securing additional licensees,
although the Board believes that further progress will be made
during this calendar year. In the meantime, CAP-XX continues to
enjoy rising enquiry levels and views future licensing
opportunities with increasing confidence.
Intellectual property
CAP-XX continues to vigorously defend its intellectual property
(IP) which it believes to be the cornerstone of its position as the
world leader in prismatic supercapacitors, as well as a world
leader in the broader supercapacitor market. The level of IP
infringement it suffers as a consequence of this has prompted the
Company to dedicate the necessary resources to protect its position
through litigation where necessary. The level and strength of
CAP-XX's international licensees bears testament to this position
and IP conflict resolution is an active source of new licensees
whilst defence of the IP is a part of the Company's duty of care to
its contracted licensees. The Company is currently in the process
of litigation with two counterparties in the United States. The
Board is aware that the litigation process in the US can be
protracted. CAP-XX continues to provide for and monitor its costs
in this area very closely and continually evaluates the benefits of
its IP defence strategy as well as constantly reviewing the
requirement to file additional patent infringement claims.
Outlook
In the Company's announcement of 6 March 2019, CAP-XX
highlighted the importance of a series of customer visits in
relation to understanding certain customers' order positions and
how these will translate into shorter term sales revenue. The
Company is still in the process of conducting a number of these
customer visits and the Board will provide an update on trading in
respect of the anticipated overall outcome for the full year ending
30 June 2019 in due course.
For further information contact:
CAP-XX Limited
Anthony Kongats (Chief Executive Officer) +61 (0) 2 9428 0139
Kreab (Financial PR)
Robert Speed +44 (0) 20 7074 1800
Allenby Capital (Nominated Adviser and Broker
David Hart / Alex Brearley +44 (0) 20 3328 5656
More information is available at www.cap-xx.com
Notes to Editors:
CAP-XX (LSE: CPX) is a world leader in the design and
manufacture of thin, prismatic 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
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END
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