SEOUL, SOUTH KOREA--(Marketwired - Aug. 25, 2016) - Nesscap Energy Inc. (the "Company" or "Nesscap") (TSX VENTURE:NCE), a global leader in research, development and manufacturing of ultracapacitor products, today reported its financial results for the quarter ended June 30, 2016.
Revenue for the three-month period improved to USD 5.5 million, representing a 23% increase compared to USD 4.5 million in the same period last year. The increase is primarily due to higher demand from customers in the industrial and automotive sectors. Revenue for the first half of fiscal 2016, ending June 30, increased by 18% to USD 9.3 million compared to USD 7.9 million in the same period last year.
Gross profit margin for the three-month period ended June 30, 2016 improved to 20.5% compared to 6.0% in the same period a year ago. Similarly, gross profit margin for the first six months of fiscal 2016 was 21.6% versus 9.6% for the same period last year. The increase in gross profit margin is primarily due to the variation in the mix of products sold, higher factory utilization, and appreciation of the US dollar, the main transaction currency for revenue, relative to the same period in the previous year.
Net loss for the quarter was USD 0.5 million or USD 0.001 per share compared to a net loss of USD 1.5 million or USD 0.003 per share in the same period in fiscal 2015. The improvement in net loss was mainly due to an increase in revenue and gross profit margin and a decrease of operating costs, compared to the same period last year.
At June 30, 2016, the Company had cash and cash equivalents equal to USD 3.9 million and working capital of USD 6.6 million.
"Our quarterly result is the strongest since 2014 and points to the increasing demand we are seeing for our products," said Jim Zuidema, Chief Executive Officer of Nesscap. "Our newly launched XP™ product line is generating strong customer interest and the additional funding received from our successful rights offering, completed in June, is allowing us to expand production capacity and accelerate new product development."
The financial statements for the second quarter of fiscal 2016 and related MD&A have been filed on SEDAR and can be found at www.sedar.com.
Additionally, the Board of Directors announces that Jim Zuidema has assumed the title of Chief Executive Officer and Chief Financial Officer. "Jim has effectively and successfully served as Nesscap's acting CEO as well as CFO for almost four years and the Board felt it important to publicly clarify his status," said Ilya Golubovich, Nesscap's lead director.
Nesscap is committed to continuing its efforts to develop "best in class" ultracapacitor cells and modules to better serve the growing and increasingly diverse market for alternative energy storage and power delivery solutions. The Company continues to invest in new technology, direct and indirect sales channels, market development, and production capacity. The Company will continue to focus on its largest current markets in Europe and China while working to develop the more emerging markets throughout the rest of the world. The Company plans to increase its brand recognition and strengthen its position as one of the key technology leaders in the ultracapacitor industry. The Company is actively seeking funding to further ramp production capacity and research and development efforts.
Since its inception in 1999, Nesscap Energy Inc. has become an award winning global leader in technology innovation and product development of ultracapacitors. Attributes of the ultracapacitor allow for the technology to be used in applications where power, life cycle requirements, or environmental conditions limit the suitability of batteries or capacitors. Nesscap products are available in both cells and modules and are used to enhance the performance of modern applications ranging from portable electronic devices to high performance windmills and high-tech 'green' cars. Nesscap features the widest array of standard commercial products in the market from 3 farads to 6200 farads with industry recognized alternative organic electrolytes. Customers of the Company are active in the transportation, renewable energy, industrial, and consumer markets. Technical and sales information can be found at www.nesscap.com.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) has in any way approved or disapproved of the contents of this press release.
Included in this news release are matters that constitute "forward-looking" information within the meaning of Canadian securities law. Such forward-looking statements may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may" or words of a similar nature. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include among others, regulatory risks, risk inherent in foreign operations, commodity prices and competition. Most of these factors are outside the control of the Company. All subsequent forward-looking statements attributable to the Company or its agents are expressly qualified in their entirety by these cautionary comments. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.