The move had transformed the group's ability to commercialise its technology in display, chairman Christopher Richards told shareholders in the company’s full-year results statement.
Since the announcement of the new strategy, the group has signed non-exclusive deals with Taiwan-headquartered Wah Hong Industrial Corporation and with Germany's Merck KGaA. These deals, together with the revised agreement with The Dow Chemical Company, put Nanoco in an excellent position to accelerate the commercialisation of its technology in display, Dr Richards said.
“Combined with our solid cash position, we look forward to the future with confidence,” Dr Richards said.
The company has cash and cash equivalents at the end of July of £14.51mln, down from £24.31mln the year before.
Revenue in the year declined to £474,000 from £2.03mln the year before, including two quarters of revenue from the Dow Chemical deal. Billings in July 2016, which are deferred into future years, amounted to £1.18 million.
The loss before tax widened to £12.6mln from £10.9mln the previous year.
As well as the extra freedom given to the company by its new licensing strategy in the display sector chief executive Michael Edelman highlighted the improvements to Nanoco’s production processes, which have dramatically increased the quality and the yield of its cadmium-free quantum dots.
“One effect of this is to substantially increase production capacity at our Runcorn, UK, facility without significant capital expenditure or the building of new production lines. Nanoco now has the capacity to be a commercial supplier of cadmium-free quantum dots for display and other applications, considerably advancing the group's manufacturing strategy,” Edelman said.
The expectation is that there will be three manufacturing plants across the globe producing Nanoco’s quantum dot products: Nanoco’s plant in Runcorn; Dow Chemical’s mass production plant in South Korea; and a mass production plant to be built by Merck.
Although Dow no longer has exclusive rights over commercialisation of Nanoco’s technology, it remains committed to marketing it under the TREVISTA brand name.
Dow has received increased sample requests over the past few months for TREVISTA cadmium-free quantum dots, which are being fulfilled exclusively from Dow's Cheonan facility, Nanoco revealed. In parallel, the application of Nanoco's improved manufacturing processes to Dow continues to progress.
“Our confidence is underpinned by a very positive market backdrop for our technology in the display industry, underlined by DisplaySearch's forecast that 18.7 million quantum dot TVs will be shipped in 2019,” Edelman said.