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CALIX LIMITED — Earnings Release 2018
Aug 26, 2018
64736_rns_2018-08-26_ec5d6bb2-8859-4fa5-b77f-16631f7ffeb0.pdf
Earnings Release
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ASX ANNOUNCEMENT 27 August 2018
CALIX END-OF-YEAR FINANCIALS & ACTIVITIES UPDATE
Highlights:
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Calix posts second consecutive year of >100% EBITDA growth
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The Company’s core products for wastewater treatment (ACTI-Mag) and corrosion protection (PROTECTAMag) products revenues grew 35% and gross margins grew from 30% to 35 %
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Calix today announces it has executed a third Material Transfer Agreement (MTA) covering testing and trials of the Company’s BOOSTER-Mag[TM] crop protection product, with another major global crop protection corporation
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Low Emissions Intensity Lime and Cement (LEILAC) Project progress continues on time and budget
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• The Industrial Transformation Training Centre for Future Energy Storage Technologies, of which Calix is an industrial partner, was recently awarded $4.38m by the Australian Resesarch Council
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Click here for a video overview of Calix’s material technology platform
Sydney, Australia | August 27, 2018 – Multi-award-winning Australian technology company Calix Limited (ASX: CXL, ‘Calix’ or ‘the Company’), is pleased to announce its FY18 results as well as a key activities update.
Calix commenced trading on the Australian Securities Exchange (ASX) on July 20 this year following an oversubscribed A$8 million raising at $0.53 per share via the issue of 15.1 million shares.
End-of-Year Financial Performance - Summary
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Total revenue from ordinary activities of $12.23m (up 9%)
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Revenues from core products up 25% to $3.865m, including 35% revenue increase in waste water / sewer corrosion protection products to $3.5m
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Gross margins increase from 30% to 35 %
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Revenue from other products / one-off projects down 65% to $0.236m
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Other income up 7% to $8.128m
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Operating expenses down 7% to $7.607m
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EBITDA up 102% to $1.933m
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Net loss down 56% to $3.34m
The Company advises the difference between EBITDA and the net loss is simply the impairment and depreciation of R&D related assets and/or activities.
Key Milestones in Crop Protection, LEILAC and Advanced Battery Projects
Crop-Protection: BOOSTER-Mag[TM] – Commercialisation Update
Calix is pleased to advise it has executed a third Material Transfer Agreement (MTA) covering lab, greenhouse and (if successful) field trials of our BOOSTER-Mag crop protection product, with another global crop protection major corporation. This third agreement follows the second MTA announced to the ASX, on July 20, 2018.
Calix’s commercialisation strategy for BOOSTER-Mag is to pursue a sales and marketing licensing model with crop protection companies, while continuing to manufacture BOOSTER-Mag in-house. Calix commenced this process last financial year. Calix’s key milestones in this process are:
1. Initiate contact with the world’s largest crop protection companies (22 engaged)
2. If high level BOOSTER-Mag results already achieved are of interest - put in place Confidentiality Agreements and disclose more detailed data (12 in place)
3. If counter-party wishes to progress - invest in their own DD trials – put in place Material Transfer Agreements (MTAs) to cover Intellectual Property terms and conditions to protect Calix’s interests as well as agreed trial scope and protocols (3 now in place)
ASX ANNOUNCEMENT
27 August 2018
Next steps:
1. Counter-party to conduct their own tests and trials on specific crop / disease / geographic region
2. If deemed successful – commercial license arrangements to be negotiated
3. If agreed – commencement of sales and marekting licenses by crop / disease / geographic region
The MTA represents a considerable investment of time and money by the counter-party, following their independent assessments of efficacy testing of BOOSTER-Mag over the past three years.
LEILAC: Low Emissions Intensity Lime and Cement – Project Update
The LEILAC Project (www.project-leilac.eu) is a €21m project (€12m is funded by the EU Horizon 2020 Research and Innovation program) piloting Calix’s technology in CO2 abatement for the lime and cement industries. As part of this project, Calix is leading a consortium of some of the world’s largest cement and lime companies, as well as leading European universities and research institutes.
Construction at HeidelbergCement’s Lixhe cement plant in Belgium remains on time and budget for completion by the end of March 2019. Commissioning, and then extensive testing will then follow over the remainder of 2019, and into 2020.
Calix’s commercialisation strategy for this application of its technology is to prove its application via this pilot project, and proceed to a license / royalty model to the cement and lime industries.
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----- Start of picture text ----- C alix’s LEILAC Project – A render ofwhat the final LEILAC plant willlook like----- End of picture text -----
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Calix’s LEILAC Project – ABOVE: The LEILAC Tower construction BELOW: The LEILAC reactor bottom half being lifted into place
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ASX ANNOUNCEMENT 27 August 2018
Advanced Batteries
Following the award of an Advanced Manufacturing Growth Fund grant from the Australian Government in January 2018, Calix has moved into detailed design and construction of a novel materials manufacturing facility at its Bacchus Marsh plant, targeting advanced cathode materials for lithium-ion batteries, as well as numerous other advanced materials applications. The Advanced Batteries project remains on-track for completion of commissioning by endAugust, 2019.
Calix is pleased to advise the Industrial Transaformation Training Centre for Future Energy Storage Technologies, in which Calix is an industrial partner, was recently awarded $4.38m by the Australian Research Council.
Professor Doug MacFarlane (Monash University) said:
“The ARC Training Centre for Future Energy Storage Technologies aims to equip the next generation of researchers and the energy technology workforce with the skills needed to drive innovation, exploration and investigation so we safeguard our workers and industries. The Centre aims to challenge existing thinking and expand Australia’s capacity in energy storage and production. The Centre expects to create new knowledge and intellectual property in advanced energy materials, batteries and battery-control systems for integration into end user industries. This Centre will facilitate small to medium-sized enterprises to take a global leadership role in advancing and producing new age storage technologies. By harnessing the expertise of researchers and industry partners the Centre aims to deliver benefit to our economy, the community and the environment. This is a great result and we’re glad to be working with our industrial partners such as Calix on this initiative.”
Calix’s commercialisation strategy for this application of its technology is to develop new “drop-in” materials that improve the performance and cost of lithium-ion batteries, and ultimately investigate alternate chemistries for improved battery performance, based upon the Company’s unique “kiln” technology’s ability to produce highly porous micro-crystals.
ASX ANNOUNCEMENT 27 August 2018
For more information:
Phil Hodgson Managing Director and CEO [email protected] +61 2 8199 7400
Darren Charles Company Secretary and CFO [email protected] +61 2 8199 7400
Simon Hinsley Investor Relations [email protected] +61 401 809 653
Michelle Taylor Media
[email protected] +61 2 9252 2266
About Calix
Calix is a multi-award-winning Australian technology company that is developing new processes and materials to solve global challenges.
The core technology is a world-first, patented kiln built in Bacchus Marsh, Victoria that produces mineral honeycomb, which are very highly active minerals.
Calix uses these minerals, which are safe and environmentally friendly, to improve waste water treatment and phosphate removal, help protect sewer assets from corrosion, and help improve food production from aquaculture and agriculture with reduced antibiotic, fungicide, and pesticide use.
Calix's technology has also been adopted overseas, where the company is working with some of the world's largest companies, governments and research institutions on CO2 capture.