SEOUL, SOUTH KOREA--(Marketwired - May 28, 2014) - Nesscap Energy Inc. ("Nesscap") (TSX VENTURE:NCE), a global leader in research, development and manufacturing of ultracapacitor products, reported its financial results for the first quarter ended March 31, 2014.
Revenue for the three-month period increased 66%, to US $5.3 million, compared to $3.2 million in the same period last year. The increase in revenue is due to stronger demand from new and existing customers. Gross profit margin for the quarter improved to 22% compared to 11% in the same quarter last year and 21% for fiscal 2013.
Net loss for the quarter was $0.1 million or $0.001 per share compared to a net loss of $0.6 million or $0.003 per share in the same period in fiscal 2013. The improvement in net loss was mainly due to increased sales volumes combined with reduced unit production costs.
At March 31, 2014, the Company had cash and cash equivalents equal to $3.7 million and working capital of $15.9 million.
"Our success in the first quarter was driven by a combination of strong market demand and improved efficiencies in our factory," said Jim Zuidema, Acting Chief Executive Officer of Nesscap. "Demand for Nesscap's products has strengthened over the past few quarters and, as a result, we see an increasing need to invest in production capacity and technology development to expand our share of the growing market for alternative energy-storage solutions."
The Company recently announced that it has engaged Marathon Capital, LLC as exclusive advisor, in connection with a proposed equity financing, and that I2BF Energy Limited and Arbat Capital Group Ltd. have agreed to participate as lead investors, with a minimum subscription amount of US $10 million. Nesscap has also recently announced that it has renewed a $5.8 million convertible loan and completed a bridge financing for up to $2.0 million. Detailed terms of the loan and financing can be found in the Company's March 19, 2014 press release as well as the fiscal 2013 MD&A.
Nesscap continues to focus on developing its largest regional markets in Europe and China while strengthening its overall position as a technology leader in the ultracapacitor industry. The strategic focus for the Company includes transportation, renewable energy, industrial applications and consumer electronics. Nesscap plans to increase investments in technology, direct and indirect sales channels, market development, and production capacity.
The Company is hosting its annual and general meeting of shareholders on Tuesday, June 24, 2013, at 10:00 a.m. (Toronto time) at the offices of Norton Rose Fulbright Canada LLP located at Suite 3800, Royal Bank Plaza, South Tower, 200 Bay Street, Toronto, ON M5J 2Z4.
The financial statements for the first quarter of fiscal 2014 and related MD&A can be found on SEDAR at www.sedar.com.
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 6,200 farads with industry recognized alternative organic electrolytes. Customers of the Company include transportation, power, and consumer markets. Technical and sales information can be found at www.nesscap.com.
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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.