AMP Amphion Innovations Plc

 

TIDMAMP 
 
RNS Number : 4999G 
Amphion Innovations PLC 
02 February 2010 
 

 
 
                            Amphion Innovations plc 
                            Full Year Trading Update 
 
·    Net Asset Value per Share down approximately 4.5% year-on-year in US dollar 
terms / 13% in sterling 
·    Total revenue increased 22% to $8.6 million 
·    IP licensing revenue increased 39% to $7.6 million 
·    Gross profit increased 70% to $5.8 million. 
·    Operating loss down from $3.38 million to $0.88 million 
·    Operating profit of $10,000, excluding non-recurring items 
·    $4.2 million raised through Convertible Promissory Notes for further 
investment in and support of each of the Amphion Partner Companies 
 
2 February 2010 - Amphion Innovations plc (LSE: AMP) ("Amphion" or the 
"Company"), announces that results for the 12 month period to 31 December 2009 
are expected to show a small decrease in Net Asset Value ("NAV") in sterling to 
GBP0.26 being $0.42 (GBP0.30 and $0.44 as at 31 December 2008), broadly in line 
with market expectations.  In absolute terms, 26p per share equates to a total 
NAV of GBP34 million. This valuation includes the wholly-owned subsidiary, 
DataTern, which generated the majority of Amphion's revenues through IP 
licensing this year and which has yet to be revalued from historic levels. 
 
Amphion builds shareholder value in high growth companies in the medical and 
technology sectors by using a focused, hands-on company building approach, based 
on decades of experience in both the US and UK.  Currently there are 8 Partner 
Companies developing proven technologies targeting substantial commercial 
marketplaces in excess of $1 billion.  Each Partner Company aims to achieve a 
target exit value in excess of $100 million.  The Amphion model has been refined 
to optimise the commercialisation of patents and other intellectual property 
within the Partner Companies.  The Partner Companies collectively own or control 
over 200 separately identified pieces of intellectual property, a number which 
grows rapidly each year. 
 
During the year, Amphion successfully raised an additional $4,238,340 through 
the placing of additional tranches of the Convertible Promissory Note first 
issued in late 2008.  The goal is to raise up to GBP7 million of additional 
capital through the issue of these notes and at year end GBP4.86 million had been 
issued.  A further GBP713,122 has been issued since 1 January 2010 and we expect 
to be able to place the balance of the Note by the end of the financial year. 
The main use of proceeds from this issue has been further investment in and 
support of each of the Amphion Partner Companies. 
 
Amphion's intellectual property licensing programme made good progress over the 
course of the year.  Amphion's wholly-owned subsidiary, DataTern, Inc., signed 
additional non-exclusive intellectual property license agreements with 14 
leading international companies over the year, bringing to 18 the total number 
of licensees of the ORM technology.  Revenue generated from IP licensing rose 
39% to $7.6 million in 2009.  Despite the continued success of this programme, 
only about $1.3 million of value is shown in our balance sheet (and Net Assets) 
for our intellectual property assets. 
 
As a result of the success of the licensing programme, Amphion's total revenue 
increased by 22% to $8.66 million in 2009 and gross profit increased by almost 
70% from $3,411,694 to $5,791,018.   The loss from operations narrowed from 
$3,381,098 to $876,264 and excluding non-recurring items, the Company managed to 
record a profit, of a little over $10,000. 
 
Despite the difficulties in the market environment during 2009, Amphion's 
Partner Companies continued to make progress and several important milestones 
were reached. Kromek's liquid detection systems offer complementary threat 
detection technologies to the full body scanning systems and conventional x-ray 
machines currently used in airports around the world that are aimed at detecting 
explosive materials, while also easing the restrictions on passengers passing 
through security checkpoints.  Trials of Kromek's systems by leading government 
agencies in both the US and the UK are making steady progress and other markets 
are being actively explored for Kromek's revolutionary and proprietary digital 
x-ray technology.  Kromek won the Global Security Challenge SME 2009 award in 
November 2009. Axcess successfully implemented its comprehensive security system 
at the Port of Spain in Trinidad and Tobago where the Fifth Summit of the 
Americas conference was held in April 2009.  Axcess also recently announced it 
entered into an important partnership with HID Global, the leading supplier of 
access control systems in the world.  Myconostica continues to make progress 
with the development and launch of its rapid diagnostic products for life 
threatening fungal infections.  In June 2009, WellGen launched its first 
consumer products, a line of nutritional supplements under the brand name, TeAmé 
and in December the company announced important pre-clinical progress in the 
development of its leading product which is being developed for the large unmet 
medical need in the use of medical foods for the management of diabetes. 
 
Amphion has continued to develop its activities in the Middle East and a number 
of projects are currently under evaluation.  In November, Amphion signed a 
partnership agreement with Kuwait University, the State's first and oldest 
University.  This agreement is aimed at establishing and operating a Technology 
Transfer Unit ("TTU") at the University, which will be the first in-house TTU in 
Kuwait. 
Amphion expects to announce its preliminary results for the 12 months to 31 
December 2009, on 16 March 2010. 
 
Richard Morgan, Amphion's Chief Executive Officer, said: 
 
"2009 was a challenging year for businesses worldwide and Amphion found itself 
in a very tough environment.  Our model depends in part on being able to gain 
access to capital to fund and grow our Partner Companies.  With the public 
markets effectively closed for most of the year and the private capital markets 
also frozen, the challenges were great.  In addition to the cautious stance and 
cost cutting measures Amphion and our Partner Companies have adopted since 2008, 
the continued success of our IP licensing programme has been a critical factor 
in getting the Company close to break-even for the year and to enable us to 
raise additional capital through the issue of the Convertible Promissory Note. 
These have been key factors in allowing Amphion to help our Partner Companies to 
keep moving forward.  The outlook for continued progress in our IP licensing 
activity remains positive and we are committed to growing and strengthening this 
side of our business.  We continue to believe that a number of our companies 
should be ready to approach the IPO market as and when it revives." 
 
For further information please contact: 
 
Amphion Innovations 
Charlie Morgan: 
+1 (212) 210-6224 
 
Cardew Group 
Tim Robertson/ Jamie Milton/Daniela Cormano: 
+44 020 7930 0777 
 
Charles Stanley Securities, Nominated Adviser 
Mark Taylor/ Freddy Crossley: 
+44 020 7149 6000 
 
About Amphion Innovations plc? 
Amphion (LSE: AMP) builds shareholder value in high growth companies in the 
medical and technology sectors, by using a focused, hands-on company building 
approach, based on decades of experience in both the US and UK.   Amphion has 
significant shareholding in 8 Partner Companies developing proven technologies 
targeting substantial commercial marketplaces, each in excess of $1 billion. 
Each Partner Company is chosen with the goal of achieving an exit valuation in 
excess of $100 million. The Amphion model has been refined to optimise the 
commercialisation of patents and other intellectual property within the Partner 
Companies.  The Partner Companies collectively own or control over 200 
separately identified pieces of intellectual property, a number which grows 
rapidly each year. 
 
On the web: www.amphionplc.com 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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