Iq Power AG (fka IQPOF)

[Aduke]

iQ Power AG publishes interim report for the second half of 2012 - 16NOV2012


Strategic reorientation as pure technology licensors is continued
Overall results after the first 9 months of 2012 are EUR -1.9 million (previous year: EUR -2.9 million), in line of expectations
Clear strategic focus on the expansion of the licensees and the consistent implementation of the patent pipeline strategy


iQ Power AG, developer and marketer of technology and its licenses for environmentally friendly and technologically advanced automotive batteries for automobiles, published the interim report for the second half of 2012 today.


The strategic realignment of a pure technology-licensor has been consistently pursued in the first nine months of the current fiscal year 2012. The overriding task was the spin-off of iQ Power AG of the European manufacturing and distribution companies. The new corporate structure of iQ Power AG is effective since 1. April 2012. The spin-offs result in a significant positive impact on earnings and balance sheet risk. The level of costs could be reduced significantly, although the volume of sales declined significantly by eliminating the battery trade.

Consolidated sales amounted to approximately EUR 2.2 million in the first nine months of 2012 compared to approximately EUR 7.7 million in the comparable period last year. In the third quarter of 2012 a negative impact on earlier anticipated license income was mainly driven by reduced royalty revenues of the largest licensee iQ Power Asia, due to the relocation of the lead plate production from Malaysia to South Korea. Cost of sales decreased by EUR 7.2 million to EUR 2.0 million and the total operating expenses could be significantly reduced by EUR 3.3 million to EUR 2.0 million. Non-recurring expenses in the wake of corporate restructuring amounted to approximately EUR 0.4 million. The net result improved by EUR 1.0 million to minus EUR 1.9 million (previous year: minus EUR 2.9 million) and is thus in line of expectations.

With total assets of EUR 4.9 million at the closing of the 30th September 2012 (31 December 2011: EUR 9.7 million) and an equity capital of EUR 1.4 million (31 December 2011: EUR 2.8 million) the equity ratio stood at 28.2 percent at the key date (31 December 2011: 28.7 percent). Cash and cash equivalents at 30 September 2012 were EUR 0.34 million (31.12.2011: EUR 0.40 million).

By the Group restructuring, the decoupling of production and distribution operations, an important step for the strategic realignment of the company to a pure technology licensor was completed. Already positive effects can be seen through reduced financing requirements and reduced operational risks. Especially in view of the longer than originally planned business development of the iQ-licensing partners, the new strategic direction has proven to be an important step.


Positioning as a pure technology licensor opens up new perspectives, because now collaborations with battery manufacturers are possible, who have previously been reluctant to adopt the technology because they were in direct competition with iQ Power. Currently, iQ Power AG is in negotiations or preliminary discussions with several potential licensees in Europe and beyond. At the same time the chosen patent pipeline strategy is progressing steadily. Currently a new patent for an improved design of plastic parts is prepared, which increases the effectiveness of the battery components, reduces the tool costs and at the same time simplifies the manufacturing process.

IQ Power AG is continuing its strategic focus clearly on the continuation of the patent pipeline strategy, the development and expansion of existing licensees, as well as attracting new licensees.

More information on the development of iQ Power AG in the first nine months of 2012 can be found in the Interim report for the second half of 2012 under www.iqpower.com.


http://www.iqpower.com/index.php?pid=1,1&id_news=1092&ID=06d71d9454cc195d5bacf6d630d1a5d4