CAP-XX Shares Slip As It Warns On Softening Demand, US Litigation

LONDON (Alliance News) - Shares in CAP-XX Ltd sank on Tuesday as it announced intellectual ...

Alliance News 16 April, 2019 | 11:29AM
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LONDON (Alliance News) - Shares in CAP-XX Ltd sank on Tuesday as it announced intellectual property litigation in the US, while it has also experienced softer demand from wearable technology manufacturers.

Shares in CAP-XX, which makes supercapacitors and energy management systems for electronic devices, were down 24% at 3.98 pence in morning trade.

CAP-XX said while it continues to receive interest in its supercapacitors, particularly as they relate to the 'internet-of-things', demand from wearable technology producers has fallen. CAP-XX has received no new orders from Spire Health, which makes wearable health trackers, due to the harm caused to Spire by US trade tariffs.

"Spire has repositioned its device from the sports leisure market to the professional medical market in order to sustain a higher price point," said CAP-XX.

The company is seeking new licensees for its technology, which so far include Murata Manufacturing Co Ltd, AVX Corp, and TDK Corp. Further progress in this area is expected in the 2019 calendar year.

CAP-XX said it is continuing to "vigorously defend its intellectual property" and, to this end, is involved in litigation with two counterparties in the US.

"The board is aware 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," said CAP-XX.

CAP-XX intends to open a new office in Europe, and has appointed Marco Ranalli, most recently global director of Gentherm Inc's battery systems business unit, to lead its European business strategy. Ranalli will assess the benefit of creating a local engineering and new business strategy in Germany.

In terms of outlook, CAP-XX is in the process of conducting customer visits to understand the order positions of some of its customers and how those positions might "translate into short-term sales revenue". CAP-XX's financial year ends June 30, with an update on trading and how that might effect its results expected "in due course".

By Anna Farley;

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
CAP-XX Ltd 3.80 GBX -0.65 -
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