Quantum dot firm Nanoco lowers expectations
Quantum dot company Nanoco has announced its interim results for the six months ended 31 January 2017. Although first half results are in line with the board's expectation, the firm says sales have not yet materialised in the second half and it is therefore lowering its full year expectations.
Michael Edelman, Nanoco's CEO, said: "We have continued to make good progress in our first half. We were particularly encouraged by the positive feedback and significant interest shown in Nanoco's CFQD quantum dots at CES by major display manufacturers, customers, partners and the financial community.
"In response to growing global interest in our technology, we and our partners have been making further enhancements to our manufacturing processes, ensuring the Group is fully prepared to fulfil commercial orders, which are anticipated in the near future.
"Nanoco is engaged with more near term commercial opportunities than at any time in its history, so it is frustrating not to be able to report significant revenues to date and it is essential that sales commence as expected. This activity, combined with our cash position and careful management of our cost base, means we look forward to the future with confidence."
The company made personnel cost savings of Â£1.1 million per annum following cost cuts in December 2016.
The company has cash and cash equivalents of Â£8.3 million plus R&D tax credit receivable of Â£1.9 million, which the board believes gives it sufficient headroom under the expected timeframe for commercial sales to commence.It has also carried out detailed contingency planning in event that sales are further delayed.