SEOUL, SOUTH KOREA -- (Marketwire) -- 11/19/12 -- Nesscap Energy Inc. ("Nesscap") (TSX VENTURE: NCE), a global leader in research, development and manufacturing of ultracapacitor products, today reported its financial results for the three-month and nine-month periods ended September 30, 2012.
Revenues for the three-month period decreased 58% to $2.0 million (USD), compared to $4.9 million for the same period in 2011. Revenues for the nine-month period decreased 42% to $7.8 million from $13.4 million in 2011. The decrease is primarily due to a significant drop in sales to one of the Company's largest customers, overall soft demand at key accounts, and the continued weakness of the European economy.
Net loss for the quarter was $1.9 million or $0.009 per ordinary share compared to a net loss of $1.1 million or $0.008 per ordinary share for the same period in 2011. The reduction in net gain was due mainly to a decrease in gross profit, associated with lower revenues, and an increase in foreign exchange translation loss compared with the same period in the previous year.
At September 30, 2012, the Company had cash and cash equivalents equal to $8.3 million, not including $15 million in escrow for the establishment of ultracapacitor production and research facilities in the Russian Federation, and working capital of $20.8 million.
"In the third quarter we continued to experience soft demand as a result of economic weakness in some of our key markets," said Dennis Orwig, Chief Executive Officer of Nesscap Energy Inc. "However, Nesscap remains committed to developing best-in-class products and expanding sales and marketing resources which are required for our global growth."
In July 2012, the Company announced the closing of a USD $8.5 million private placement of common shares from I2BF Energy Ltd. and Arbat Capital Group Ltd. at a price of CAD 0.38 per common share. Proceeds will be allocated primarily to expand Nesscap's operations in South Korea.
The unaudited financial statements and related MD&A can be found on SEDAR at www.sedar.com.
Since its inception in 1999, Nesscap Energy Inc. has become an award winning global leader in technology innovation and product development of ultracapacitors. Attributes of the ultracapacitor allow for the technology to be used in applications where power, life cycle requirements or environmental conditions limit the suitability of batteries or capacitors. Uniquely structured, Nesscap products are used to replace or enhance the performance of energy and power needs for modern applications ranging from portable electronic devices to high-tech 'green' cars and are available in both cells and modules. Nesscap features the widest array of standard commercial products in the market from 3 farads to 6,200 farads with industry recognized alternative organic electrolytes. Customers of the Company include transportation, power, and consumer markets. Technical and sales information can be found at www.nesscap.com.
Included in this news release are matters that constitute "forward-looking" information within the meaning of Canadian securities law. Such forward-looking statements may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may" or words of a similar nature. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include among others, regulatory risks, risk inherent in foreign operations, commodity prices and competition. Most of these factors are outside the control of the Company. All subsequent forward-looking statements attributable to the Company or its agents are expressly qualified in their entirety by these cautionary comments. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.