Ilika plc Trading update (7455Z)
March 17 2017 - 3:00AM
UK Regulatory
TIDMIKA
RNS Number : 7455Z
Ilika plc
17 March 2017
Ilika plc
("Ilika" or the "Company")
Trading update
Ilika (AIM: IKA), a pioneer in materials innovation and
solid-state battery technology, announces the following update on
trading.
Revenue update
Since its last trading update in November 2016, the Company has
announced four significant commercial deals, which are resulting in
a strong ramp-up of revenue relative to 2015/16 and which will
continue to support revenue growth into 2017/18. We expect to start
2017/18 with a record level of revenue commitments amounting to
around GBP1.8m.
Ilika's stated business aim is to add licensing revenue to the
development revenue it currently generates. While levels of
interest are encouraging, predicting the timing of when these
licenses will generate revenue remains a significant forecasting
challenge for the Company. Given our proximity to the end of
Ilika's current financial year and the duration of negotiations
with OEM potential licensees, it seems increasingly likely that
revenue from licensing may first have an impact in 2017/18.
Stereax roadmap update
Ilika has continued to develop its Stereax intellectual property
in accordance with its roadmap, which it updates in line with
feedback from its pipeline of development partners. Earlier this
month, Ilika confirmed that it had secured a partnership with the
bioelectronics company Galvani Bioelectronics ("Galvani"), focused
on optimising the Stereax platform for use in neurostimulators.
Bioelectronics is a rapidly developing market with large
opportunities that match the unique benefits that Stereax offers.
Stereax's high volumetric energy density, manufacturability at
mm-scale and the ability to deliver pulses of power are ideal for
such devices. Galvani is a particularly suitable partner, given the
substantial technological and financial backing it has from its
parent companies, GlaxoSmithKline and Verily (part of the Alphabet
group, formerly known as Google).
Towards the end of last year, Ilika announced the start of a
funded collaborative project with Sharp Laboratories of Europe
("Sharp") to create a device consisting of an integrated
Stereax(TM) solid-state battery and a photovoltaic panel, offering
an autonomous energy harvesting device for wireless components. The
initial concept was designed to address opportunities in automotive
and wearables, but publicity around the project has also attracted
interest from consumer goods companies looking for innovative ways
to promote their products in retail outlets.
The next product milestone on Ilika's Stereax roadmap is its
industrial battery, code-named Endeavour, which will be able to
operate in an extended temperature range covering -40 to 150 degree
Celsius. This battery is designed to meet the requirements of
Industrial IoT, sometimes called Industry 4.0. A discussion of
applications is covered in our recently-posted video featuring
Meggitt and IBM which can be found here -
http://www.ilika.com/news/videos.
Materials development programmes
While the Company is deploying most of its operational and
commercial resources on Stereax activities, it has also seen an
increase in materials development programmes on its high throughput
technology platform. Last month Ilika announced that it had
received notification of a renewal of the commercial relationship
it has with Seagate to develop photonic materials and processes for
Hard Disk Drive ("HDD") technology.
Ilika has also recently announced the renewal and strengthening
of its long-standing relationship with Toyota. This has been
triggered by the award of a contract by the Toyota Research
Institute in the USA, which was founded at the end of 2015 with an
initial focus on artificial intelligence, robotics and materials
innovation.
The Company will announce a more detailed update on the outturn
for 2016/17 in May prior to issuing its full year results in
July.
Graeme Purdy, CEO of Ilika, commented: "We are continuing to see
a reinforcement of our customer relationships, with long-standing
partnerships with companies like Toyota and Seagate being further
cemented. It's also great to see the upturn in revenues relative to
last year allowing us to start 2017/18 with such a strong order
book. The number of potential licensees, their level of interest
and the diversity of applications is giving us growing confidence
in our licensing model."
For more information contact:
Ilika plc www.ilika.com
Graeme Purdy, Chief Executive Tel: 023 8011 1400
Steve Boydell, Finance Director
Numis Securities Limited Tel: 020 7260 1000
Oliver Cardigan/ Paul Gillam
(Corporate Adviser)
James Black/ Michael Burke (Corporate
Broking)
Walbrook PR Ltd Tel: 020 7933 8780 / ilika@walbrookpr.com
Paul Cornelius Mob: 07866 384 707
Lianne Cawthorne Mob: 07584 391 303
This information is provided by RNS
The company news service from the London Stock Exchange
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