Intellectual property commercialisation company, QPSX Ltd, has recorded a half year net loss of $1.1 million as compared to a net loss of $1.6 million for the same period in 2004.
Intellectual property commercialisation company, QPSX Ltd, has recorded a half year net loss of $1.1 million as compared to a net loss of $1.6 million for the same period in 2004.
The company's revenues from ordinary activities were $276,752 for the period, an increase of 132 per cent on the previous corresponding period.
The company said the improved result reflected funding arrangements now in place for all of the Company's intellectual property ("IP") litigation which cover the majority of outgoings in those cases.
At 1115 WST, QPSX's share price was at 14 cents.
Below is the QPSX Directors' Report:
QPSX LIMITED--HALF-YEAR REPORT
Directors' Report
Your directors submit their report for the half-year ended 31 December 2005.
DIRECTORS
The names of the company's directors in office during the half-year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.
Ross Norgard, FCA. (Non-executive Chairman)
Conrad Crisafulli, BE (Hons), AFAIM, MAICD (Non-executive Director)
Paul Finn, (Non-executive Director)
Graham Griffiths, B Bus FAICD(Executive Director and Chief Executive Officer)
Mary O'Kane, B Sc(QLD), PhD(ANU), FTSE. (Non-executive Director)
REVIEW AND RESULTS OF OPERATIONS
The consolidated entity reported a net loss after tax of $1,108,350 for the half-year to 31 December 2005, with revenues of $276,752, as compared to a net loss of $1,630,119 for the same period the previous year. The improved position reflects funding arrangements now in place for all of the Company's intellectual property ("IP") litigation which cover the majority of outgoings in those cases.
In addition, the separation of the Company's IP assertion and "ventures, licensing and services" business into Offspring Ventures has streamlined operations.
The Company's IP Assertion portfolio includes a balanced mix of near term and longer term cases, all with significant potential revenue flow to QPSX. The Company is also placing greater emphasis on growing its IP services business as research institutions and corporations increasingly are looking to outsource this work to optimise their return on research and development investments.
The closing cash balance as at 31 December 2005 of $2,464,566 slightly exceeded budget forecast. During the period all of the outstanding Convertible Notes were converted. The Company now has no bank debt or borrowings on its balance sheet. Subsequent to 31 December 2005 the Company raised an additional $2,456,284 through a share placement.
AUDITOR'S INDEPENDENCE DECLARATION
Ernst & Young, our auditors, have provided a written independence declaration to the Directors in relation to their review of the Financial Report for the half year ended 31 December 2005. This independence declaration can be found at page 22.
Signed in accordance with a resolution of the directors.
Graham Griffiths
Executive Director and Chief Executive Officer
Perth, 10 March 2006
Perth, 10 March 2006
