- Strong revenue growth in September quarter forecast to accelerate through FY18
- Scaling up production of readers and chips for customers
- Key customers currently tooling for production
- Labcon North America progressing to tooling trials
- Genea Biomedx licence income received
- Patent granted for ‘Temperature Sensing and Heating Device’
- $2.96m cash in bank provides clear runway to execute
Bluechiip Limited, a leader in the development of sample tracking technology for harsh environments, is pleased to supply this company update, following release of its Appendix 4C quarterly results on Tuesday 17 October. The company’s quarterly results underline a growing consistent revenue stream, with $155,000 received from customers over the past three months via licence fees, sales of Bluechiip technology and delivery of services. Bluechiip’s customers are tooling up for production and the company is scaling up production to meet this demand. This is reflected in the company’s accelerated spending forecast for the December 2017 quarter, as contained in Appendix 4C.
With a cash balance at the end of the quarter of $2.96M, Bluechiip Limited has a runway to execute its strategy over the financial year.
Andrew McLellan, Managing Director of Bluechiip Limited, said the company’s revenue, though small, continues to grow at a rapid pace. “Cash inflow from sales in the September quarter represents a 295% increase on the same quarter last year and a 40% increase on the previous quarter,” he said. “Each sale we get is further validation of our technology and its applications. It is exciting to be moving into a production scaling phase to meet the demands of our OEM partners as they prepare Bluechiipenabled products for market”. Bluechiip’s aims remain clear: methodical progression towards the application of its patented, wireless tracking technology across multiple market platforms, including the US$2b (A$2.6b) biopreservation market and large adjacent markets. Bluechiip expect significant revenue growth in this and future years – from licences, engineering services and products – as its partners launch Bluechiipenabled products into global markets.
Bluechiip Limited is scaling up production to supply product to its three key partners.
- Labcon North America (Labcon) is rapidly progressing tooling a range of Bluechiip Corporate Headquarters 1 Dalmore Drive, Caribbean Business Park, Scoresby Victoria 3179 Phone +61 3 9763 9763 Email email@example.com bluechiip.com vials and storage boxes which will incorporate Bluechiip tracking technology for the biospecimen storage market. Labcon will finalise its tooling for a variety of products in the near term – including vials and boxes – with a view to launching next year. The supply and licence agreement with Labcon, signed on 10 April 2017, allows Labcon to buy, utilize, sell, market and promote Bluechiip’s intellectual property, technology and products.
- Genea Biomedx is targeting the US$20m (A$25m) invitro fertilization (IVF) tracking market under the supply and development agreement signed previously with Bluechiip. Genea Biomedx has paid licence fees and is now progressing on product development.
- A supply agreement with Planet Innovation, signed on 15 September 2016 (coupled with an investment in Bluechiip), allows for the two parties to jointly pursue projects. Planet Innovation is engaging with downstream partners while also assisting in final stage development and handover of design for the manufacturing of Bluechiip’s new generation readers, including the MultiVial Reader.
Bluechiip Limited is now building inventory to supply these partners and other customers. The company has placed orders for 50 units of Matchbox readers from its supplier; it has committed to manufacturing ramp for the MultiVial reader with multiple orders already received to supply; and it is configuring and tooling its chips for delivery in various formats, to satisfy orders for volume production in the near term.
Importantly, the market is showing confidence in our products and technology with Bluechiip Limited receiving repeat orders from enduser customers. Patent expansion
While focused on building the demand and servicing our Original Equipment Manufacturing (OEM) partners, Bluechiip is also further securing its core underlying intellectual property. On 15 August 2017 the company was granted US Patent 9,736,890, Temperature Sensing and Heating Device. This expands Bluechiip’s granted patent portfolio to 25, with several Patent applications also in progress.
Applications in progress include the highly valuable Over Temperature technology being developed in conjunction with the University of Melbourne. This collaborative research partnership has now completed phase 2 proof of concept.
Developer kit sales
Recent months have seen a significant increase in the number of developer kits delivered to potential partners, enabling partners to undertake their own due diligence. Each sale of a developer kit has the potential to generate OEM partner agreements. Demand is being driven by an increase in marketing activity and an increase in market presence, especially in North America.
Bluechiip anticipates accelerating engagement with partners in North America, Europe and Asia, with conversion into more OEM partnerships. Bluechiip recently completed a sixminute video, which explains clearly the company’s progress, its OEM partnerships and its plans for the future. The video can be seen via this link