- CAP-XX reported Wednesday wider losses before tax as revenues were weighed down by flat royalty and licencing growth in first half of the year.

For the half-year ended 31 December 2018, pre-tax losses widened to A$2.62m from A$2.44 a year earlier and revenue increased to A$1.6m from A$1.5m.

Product sales were up on the previous year by 5%, but royalty and licencing revenue were flat when compared to a year earlier.

Like for like gross margin rose to 54.1% from 49.1% a year earlier amid a boost from manufacturing initiatives.

In terms of the outcome for the full year ending 30 June 2019, although the company's long-term sales pipeline is healthy, CAP-XX's said its immediate concern was the short term sales revenue position.

The company said it would have a clearer outlook on short-term sales revenues 'once all relevant customer visits were completed and their short term order positions are better understood.'

'The ongoing growth in the pipeline of major new sales projects has given the Board the confidence to start examining options for expanding production capacity,' the company said.

'The TDK licence agreement has been signed and good progress has been made towards the completion of several other licence arrangements. Development of future product releases, especially the 3V product, remains on schedule.'

At 9:26am: [LON:CPX] CAPXX Ltd share price was -0.4p at 7.15p

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