Interim Management Statement

 

TIDMNTX 
 
RNS Number : 8222K 
NXT PLC 
27 April 2010 
 

                                                                   27 April 2010 
                                    NXT plc 
                          Interim Management Statement 
NXT plc ("NXT" or the "Company"), a provider of unique sound solutions, best 
known for its flat panel loudspeaker and touch screen technologies, is today 
issuing its Interim Management Statement for the period 1 January 2010 to 26 
April 2010 in accordance with the requirements of the Disclosure and 
Transparency Rules of the UK Listing Authority. 
Highlights: 
·     Completion of GBP1 million placing in February 2010 
·     Strategic purchase of the intellectual property of Audium and associated 
assets in April 2010 
·     Continued development of small screen multi-touch / multi-haptics samples 
·     Development of e-commerce sales for components and drive units 
·     Disappointing royalty income from portable speakers in the period 
·     As previously indicated satisfactory second half results are dependent on 
signing additional licences 
Placing: 
The successful fundraising of approximately GBP1 million in February ensured 
sufficient resources to exploit the momentum NXT has built in both the 
TouchSound and BMR technologies. 
In addition to adding more resource to the ongoing development of TouchSound at 
an important stage in the path to commercialisation of the technology, the 
additional funds have also enabled NXT to review its R&D roadmap. 
Audium: 
Audium semiconductor technology is an industry-leading, ultra-efficient audio 
power amplifier that enables, for example, a longer play time for portable and 
wireless battery-powered audio products. 
NXT has been monitoring this technology for some time and after a review of the 
current status of Audium's power-efficient chip and its synergy with Balanced 
Mode Radiator technology ("BMR"), NXT secured the purchase of the intellectual 
property and associated assets for a nominal amount. 
The first application of the Audium silicon to complement BMR will be an 
Audio-USB product.  It can enable up to 25 watt peak-per-channel to be delivered 
to a speaker when driven from the low power USB source without the need for an 
additional external power supply and can result in louder, better quality 
computer speakers. It is possible that future applications may include wireless 
speakers for home entertainment. 
James Lewis, Non-executive Director of NXT, will be utilising his extensive 
experience in the semiconductor industry, including time as Audium Semiconductor 
Ltd's Non-executive Director, to help integrate the acquired technology into NXT 
under a consultancy agreement. 
TouchSound update: 
NXT continues to make positive progress with Nissha Printing Company Limited 
("Nissha") on the development of small screen touch applications that generate 
separate tactile feedback sensations at different locations through the use of 
multi-touch screen functions. 
 
The Company is in negotiation with a number of the major participants in the 
large touch screen market and anticipates prototypes and technical feasibility 
studies to generate licences in the near future. An example of the sorts of 
prototypes being developed is a 42 inch infrared LCD touch screen exhibited at 
the recent Hong Kong Electronics Fair. This was the first touch screen developed 
by NXT that used the Company's proprietary Windows 7-based haptic drivers to 
demonstrate that a touch screen could be both a speaker and give haptic feedback 
in touch operations. 
Component sales: 
NXT has continued to test the principle of participating in the supply chain. 
Selling exciters directly to customers with a "shrink-wrap" licence has been 
successful and the Company has now secured Partsexpress.com as an online 
distribution partner. 
The Company will be launching its new website shortly, and this will enable 
components to be sourced directly from NXT.  Customers will be able to purchase 
a range of exciters and BMR drivers. 
Royalties: 
NXT continues to see disappointing royalty returns for portable consumer 
products.  The portable speaker market has not delivered the upturn in revenues 
anticipated at the beginning of 2010. Although many new products were launched 
and a number of promotional orders have been received, the orders placed have 
been for small quantities as buyers remain conservative. In addition certain 
customers' new product launches, such as Tunebug, have been delayed by a few 
months and have impacted on the revenue flow anticipated for the six months to 
30 June 2010. 
 
Growth in royalties will be generated in the television category where, in the 
period under review, NXT announced two new models featuring BMR slim drive 
units. The drive units are designed to fit into the latest slim-form televisions 
and it is anticipated that in addition to the previously announced models, the 
new 55 inch TV from Vizio and the new 32 inch TV from Insignia there will be 
more than eight more models launched in the coming months. 
 
Automotive royalties have recovered to pre-recession levels and there is 
continued interest in new applications from different levels within the supply 
chain. 
 
Second half expectation: 
Revenues for the period, so far, are below management expectations.  However, a 
better second half result is expected compared to the first half, although this 
is dependent upon signing further new licences.  Following the Hong Kong 
Electronics Fair the target list of licensees is expanding but companies 
continue to be cautious when considering new technology investment. 
Impact on financial position: 
Other than the impact of those items mentioned above there is no significant 
change in the financial position of the Company since 31 December 2009. 
                                      ENDS 
 
For further information, please contact: 
Peter Thoms 
Chief Executive Officer 
NXT plc 
t: [phone] 
 
Media contact: 
Peter Curtain 
Allerton Communications 
t: [phone] 
 
Singer Capital Markets 
Shaun Dobson 
Claes Spang 
t: [phone] 
 
About NXT 
NXT's commitment to inventiveness in sound and touch has enabled it to deliver 
new technologies already deployed in audio systems, TVs, PCs and laptops, mobile 
phones, PA systems, cars, aircraft and in public buildings and facilities around 
the world.  With its unique portfolio of patented technologies and unparalleled 
expertise in the field of bending wave physics, NXT helps its partners invent, 
create and market innovative sound solutions that offer sustainable 
differentiation. 
 
NXT is fully listed on the London Stock Exchange (symbol NTX) and has operations 
in Hong Kong, Japan and the USA as well as the UK.  Further information is 
available from www.nxtsound.com. 
 
Technical notes 
NXT intends to use Audium integrated circuits to provide customers with complete 
audio platforms incorporating its proven Balanced Mode Radiator (BMR) technology 
together with ultra-efficient power amplifiers. NXT customers should then be 
able to create compact, USB-powered loudspeakers capable of delivering 25 Watts 
peak-per-channel. 
 
Balanced Mode Radiators combine NXT's flat panel expertise, and the desirable 
attributes of conventional speaker technology, in a single drive unit.  The 
result is a wide bandwidth, wide directivity speaker where no crossover 
components or frequency-specific drivers are required.  Available in a range of 
compact form factors, acoustic engineers and designers benefit from the esoteric 
flexibility as the driver can be used as a cosmetic feature or hidden 
completely, in addition to cost savings delivered through fewer components. 
 
The Audium amplifier chip can be 20 times more efficient than competing devices, 
thanks to patented techniques that minimise both fixed power losses and 
output-dependent variable power losses. The chips use power rail switching so 
that the amplifier operates efficiently from a low voltage supply most of the 
time but an on-chip DC-DC boost converter drives its output transistors on audio 
peaks. The amplifier chips include integral filtering, enabling them to be 
optimised for each application. 
 
The combination of technologies could enable rapid development of compact, 
high-power, active loudspeakers. The audio signal and power can be driven from a 
single USB port with no other power source required. 
 
In the first instance the Company is developing a reference platform design 
incorporating BMR drivers and the amplifier chips. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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