June 2019 Quarterly Cash Flow Report

Download the official ASX announcement HERE: https://www.asx.com.au/asxpdf/20190724/pdf/446v0xxd73w4sr.pdf

Bluechiip Limited (Bluechiip or the Company) (ASX: BCT) today released its quarterly cash flow report for the quarter ended 30 June 2019.

ACTIVITIES REPORT FOR THE QUARTER ENDED 30 JUNE 2019

Business highlights

  • A record quarter with net sales revenue of $517k (unaudited) from the delivery of readers, chips, software and services. The previous record net sales revenue, $272k, occurred in the March 2019 quarter.  
  • Total net sales for FY 2019 of $1.02 million (unaudited), an increase of 82% on the sales of $562k achieved in FY 2018.
  • Scaling activities progressed well as the company continued to meet customer orders.
  • Continued to pursue partnerships from the pipeline of developer kits and agreements in market.
  • Received $187k from the Australian Government for the final portion of 2017/2018 Research & Development (R&D) Tax Incentive registration.
  • Received $48k Export Marketing Development Grant (EMDG) from Austrade.
  • Cash balance stands at $3.877m as at 30 June 2019 with no borrowings.

Additional information

  • The recorded net sales revenue of $517k  and sales receipts of $52k for the quarter, both are attributable to the sales of readers, chips software and services.
  • The $187k received from the Australian Government for the 2017/2018 R&D Tax Incentive was subsequent to the approval of overseas advance finding by the Department of Innovation and Science Australia in March 2019.
  • Net operating cash outflow for the June 2019 quarter was $1,282,907, up from $491,028 for March 2019 quarter (the March quarter included the receipt of R&D Tax Incentive of $790k).

Outlook

The Company remains focused on:

  • Rapidly scaling production of chips and readers to meet the purchase orders received from customers.
  • Increasing research on chips production yield with the aim of achieving economies of scale and lowering production costs.
  • Developing the pipeline of OEM partners, particularly in the US market, to advance negotiations and secure new license agreements for Bluechiip’s technology.
  • Conducting research and development to meet our current and potential OEM partners’ requirements, arising from the sales of developer kits in previous quarters. The developer kits enable potential OEM partners to integrate Bluechiip’s technology into their own products.
  • Progressing work on further patents to add to our existing 25 confirmed patents.

Bluechiip Managing  Director Andrew McLellan commented:

“We are pleased with the continued growth trajectory of the company. The increase in sales revenue is a direct result of our focus on sales, client service and upscaling of production to meet demand. We continue to aggressively pursue partnerships and work diligently to convert  Development and Supply Agreements from the pipeline of 32 developer kits and agreements with potential partners in North America, Europe and Asia.”