Perth-based companies CustomVis plc and DDD Group plc, which listed on London’s Alternative Investment Market to fund development of new technology, have racked up extra losses in the past year but believe their prospects improved in recent months.
Perth-based companies CustomVis plc and DDD Group plc, which listed on London’s Alternative Investment Market to fund development of new technology, have racked up extra losses in the past year but believe their prospects improved in recent months.
CustomVis and DDD are among a number of Australian companies, mainly in the mining sector, to have raised capital on the AIM market.
However, their ability to raise capital has not translated into profitable trading or even steady progress with development of their technology.
Wine producer Palandri is another Western Australian company outside the mining sector that was able to raise capital on the AIM market, but to date has failed to reward investors.
Palandri’s shares have been suspended from trading since last month, when it foreshadowed lower-than-expected earnings.
Despite having UK listings and targeting the global market, CustomVis and DDD continue to have a strong Perth connection, with senior directors and research and development activities based here.
CustomVis is commercialising a ‘solid state’ surgical laser treatment, which it believes is superior to the laser technology commonly used around the world.
It has suffered a number of setbacks on the path to market and, as a result, has lost more than $20 million since listing on AIM in 2003.
Recent news has been more encouraging, however.
The company said last month it was delighted with the increased interest in its product and was confident the average sales flow of two lasers per month since June could be maintained.
“We are now focused on increasing our production capabilities to meet the demand in the market for our laser,” managing director Paul van Saarloos, who earlier worked at the Lions Eye Institute in Nedlands, said.
That represents a big turnaround from the cost cutting that characterised 2005, when the company closed its UK office and cut staffing.
Another positive for CustomVis was the recent awarding of a $2.3 million R&D grant by the federal government.
DDD’s Perth-based chairman Paul Kristensen is also encouraged by recent technical and commercial developments, despite the company’s poor financial results.
DDD has been racking up losses since 1993, when it was established to commercialise its 3D visualisation technology.
Its latest result was a worse-than-expected pre-tax loss of $2.2 million for the half-year to June 2006.
DDD had expected that licensing royalties and content revenue would flow from the 3D mobile phone market, following the signing of its single largest commercial agreement with one of the world’s major mobile phone manufacturers in July 2005.
DDD completed integration of its software with the mobile phone last December but the unnamed manufacturer subsequently decided to upgrade the phone.
“It now appears likely that the launch of the redesigned 3D mobile phone will be delayed until 2007,” Mr Kristensen told WA Business News.
He said the company wanted to mitigate its reliance on a single licensee, and therefore its top priority was to secure further mobile phone licensees.
DDD also completed a 3D television development agreement with its major shareholder, Japan’s Arisawa Manufacturing Co.
As well as the mobile phone and television markets, DDD is pursuing 3D development opportunities for several other consumer markets, including hand-held personal media players, laptop PCs and digital cinema.
Mr Kristensen said he remained confident about the future of 3D applications and of DDD’s ability to compete in the global market.
