NTX Nxt

 

TIDMNTX 
 
RNS Number : 7419C 
NXT PLC 
19 November 2009 
 
10 November 2009 
NXT plc 
 
 
Interim Management Statement 
 
 
NXT plc ("NXT" or the "Company"), a provider of unique sound solutions, best 
known for its flat panel loudspeaker technology, is today issuing its Interim 
Management Statement for the period 1 July 2009 to 19 November 2009 in 
accordance with the requirements of the Disclosure and Transparency Rules of the 
UK Listing Authority. 
 
 
Sales to date are below management expectations. Uncertainty and economic 
instability have led some NXT target customers to delay their commitment to 
technology investment or suspend development programmes. The Company's licensing 
and consulting revenues have been affected by these delays, but, given ongoing 
licence negotiations and the addition of Immersion's TouchSense haptic 
technology to augment our own patent portfolio, the Board expects that this 
position will largely have been reversed by 31 December. 
 
 
As indicated in the Annual Results for the year ended 30 June 2009, in addition 
to promoting the existing technologies NXT is focused on the commercialisation 
of its latest announced technology, Bending Wave Haptics for touch screens. 
Since the December 2008 agreement with Nissha Printing Co. Ltd., interest in 
NXT's haptic technology has been high, with a number of significant 
opportunities currently under discussion. As a result of collaborative work by 
NXT and Nissha engineers, the technology has undergone several refinements since 
the initial announcement leading to enhanced performance. 
 
 
A vital part of the commercialisation process has been the selection of 
appropriate partners throughout the supply chain.  Today's announcement that NXT 
has licensed TouchSense haptics technology from NASDAQ-listed Immersion 
Corporation represents an important link-up with the current world leader in 
touch-enabled user experiences.  The agreement enables NXT and its licensees to 
benefit from Immersion's touch feedback intellectual property for touch screen 
and touch panel applications, which is complementary to NXT's own intellectual 
property. 
 
 
With Bending Wave Haptics-enabled samples now undergoing customer evaluations, 
NXT has taken the decision to re-brand the technology as TouchSound, a trademark 
that has been registered in all major markets. This accurately and powerfully 
reflects the technology's attributes and is consistent with NXT's approach of 
applying a unique identity to each of its technologies in advance of 
commercialisation. With the growth in the market for touch screen devices, 
driven by the uptake of smart phones and touch-enabled computers, the 
opportunity for TouchSound to enhance the user experience through heightened 
functionality and increased input accuracy continues to grow as do the 
applications to which haptics are applied. 
 
 
In addition to the touch screen market, NXT has continued to focus resources on 
two other growth sectors: 
 
 
Flat TVs -sales of flat panel TVs continue to grow, with the global market 
expanding to an estimated 144 million unit sales for 2009 (20.6% increase vs. 
2008). While consumer appetite for flat panel TVs remains high, lower disposable 
income levels have led purchasers to trim their budgets with sales shifting from 
40"+ screens to 32" models in 2009. NXT's BMR drive units have already been 
fitted to 42" - 55" TVs from VIZIO, ViewSonic and JVC. Based on confirmed orders 
from a growing portfolio of brands and manufacturers, smaller screen TVs 
equipped with next generation slimmer, lower-cost BMR speakers are expected to 
start shipping before the end of 2009. In key markets, including North America, 
value brands such as VIZIO (US market leader in the first half of 2009) have 
increased their market share, which analysts predict will continue beyond 2010 
along with growth for selected retailers' private label brands. Analysts also 
estimate that the manufacturing for 30% of the world's TVs will be outsourced in 
2010.  NXT is currently working with the three largest TV outsourcing factories. 
 
 
Portable speakers - with less money to spend on non-essential goods, consumers 
have switched their attentions to smaller, lower-priced audio products, leaving 
luxury models on retailers' shelves. Consumer desire to pair speakers with 
popular portable electronic devices (such as Apple's iPhone and the 8-10" 
netbook computers, which now account for 20% of all computers sold) is expected 
to continue fuelling demand for portable speakers that are offered as 
accessories to these products. NXT-based models are now on sale around the world 
from leading retailers in every major consumer market. Since July 2008 more than 
30 brands and eight retailers have introduced flat panel portable speaker 
products, and more launches are scheduled throughout 2010. 
 
 
With numerous consumer electronics companies reducing R&D budgets, the 
opportunity to deliver ready-to-go audio products to NXT's customers has led to 
an increased number of products reaching markets designed entirely by NXT's 
in-house development team. As well as designing products fitted with NXT's 
SurfaceSound technology, the team has also developed models equipped with NXT's 
premium audio technology, BMR, which are now starting to reach manufacture. To 
promote these 'open models', NXT has increased the number of trade shows it 
attends, adding an event in Mumbai to the marketing calendar. In recent years, 
the Hong Kong Electronics Fair platform has proved to be the Company's most 
lucrative trade show and this autumn's event was the Company's most successful 
so far, with NXT licensees receiving confirmed orders in the immediate days 
following the show. 
 
 
The automotive sector's widely reported sales contraction continues to impact on 
revenues for NXT, however there has been some upturn in reported royalties in 
the last quarter.  In the medium term, revenue growth is expected as confidence 
returns to global markets and additional NXT-equipped models are introduced. As 
well as vehicles equipped with its SurfaceSound technology, NXT has visibility 
of the introduction of the first vehicle to be fitted with BMR drive units 
although timing of the launch is as yet unconfirmed. 
 
 
NXT's portfolio of automotive applications continues to expand, with Japanese 
tier-one supplier Fujitsu Ten making good progress and being close to completion 
of its slim-form exciters for automotive applications to complement the devices 
it already supplies Toyota for use in vehicles sold in North America and Asia. 
In addition, a new NXT headliner audio system was demonstrated in prototype form 
at the recent SEMA show in Las Vegas. 
 
 
Elsewhere, NXT licensees have begun shipping new commercial and leisure-oriented 
products equipped with NXT loudspeakers. In the UK, ACIS is currently operating 
an extensive trial of its Intelligent Bus Information System (IBIS) across 10 
regional authorities ahead of an expected wider roll-out. The system uses NXT 
technology to help keep the unit sealed to the elements and protected from 
vandalism. In the US, ETS Tan, the world leader in tanning bed 
products, unveiled an NXT-equipped tanning bed at October's International 
Tanning Show in Nashville. 
 
 
Ongoing licence negotiations indicate positive conclusions by the end of 
December, but commitments remain difficult to predict - especially in the 
current economic climate.   Notwithstanding this, the Board remains confident of 
the prospects for NXT. 
 
 
Other than those mentioned above,and the issuance of equity to finance the 
consideration for the Immersion licence announced today,  there have been no 
significant changes in the financial position of the Company since the 
publication of the Annual Results for the 12 months ended 30 June 2009. 
 
 
 
For further information, please contact: 
 
 
NXT plc: 
+------------------------------------+------------------------------------+ 
| Ian Buckley, Chairman              | +44 (0) 1223 597 840               | 
+------------------------------------+------------------------------------+ 
| Peter Thoms, Chief Executive       | +44 (0) 1223 597 840               | 
+------------------------------------+------------------------------------+ 
 
 
Media enquiries: 
+------------------------------------+------------------------------------+ 
| Allerton Communications            | +44 (0) 20 3137 2500               | 
+------------------------------------+------------------------------------+ 
| Peter Curtain                      |                                    | 
+------------------------------------+------------------------------------+ 
 
 
Singer Capital Markets: 
+------------------------------------+------------------------------------+ 
| Shaun Dobson                       | +44 (0) 20 3205 7626               | 
+------------------------------------+------------------------------------+ 
 
 
 
 
The Interim Management Statement may contain forward looking statements which: 
 
 
  *  have been made by the directors in good faith based on the information available 
  to them up to the time of their approval of this statement; 
 
 
 
  *  should be treated with caution due to the inherent uncertainties, which are 
  beyond NXT plc's ability to control or estimate precisely and include both 
  economic and business risk factors, underlying such forward-looking information. 
 
 
 
NXT undertakes no obligation to update any forward-looking statements it may 
make. 
 
 
 
 
 
 
About NXT 
NXT's commitment to inventiveness in sound and touch has enabled it to deliver 
new technologies already deployed in audio systems, TVs, PCs and laptops, mobile 
phones, PA systems, cars, aircraft and in public buildings and facilities around 
the world. With its unique portfolio of patented technologies and unparalleled 
expertise in the field of bending wave physics, NXT helps its partners invent, 
create and market innovative sound solutions that offer sustainable 
differentiation. 
 
 
NXT is fully listed on the London Stock Exchange (symbol NTX) and has operations 
in Hong Kong, Japan and the USA as well as the UK. Further information is 
available from www.nxtsound.com 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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