# Ilika plc A strong ramp-up of revenue

- Link: https://www.directorstalkinterviews.com/ilika-plc-strong-ramp-revenue/412725671
- Published: 2017-03-17T07:11:54+00:00
- Author: Giles Arbor

**[Ilika Plc](https://www.directorstalkinterviews.com/company/ilika-plc/ika.l)**(
[LON:IKA](https://www.directorstalkinterviews.com/company/ilika-plc/ika.l)), a pioneer
in materials innovation and solid-state battery technology, announced today the 
following update on trading.

Revenue update

Since its last trading update in November 2016, the Company has announced four significant
commercial deals, which are resulting in a strong ramp-up of revenue relative to
2015/16 and which will continue to support revenue growth into 2017/18. We expect
to start 2017/18 with a record level of revenue commitments amounting to around 
£1.8m.

Ilika’s stated business aim is to add licensing revenue to the development revenue
it currently generates. While levels of interest are encouraging, predicting the
timing of when these licenses will generate revenue remains a significant forecasting
challenge for the Company. Given our proximity to the end of Ilika’s current financial
year and the duration of negotiations with OEM potential licensees, it seems increasingly
likely that revenue from licensing may first have an impact in 2017/18.

Stereax roadmap update

Ilika has continued to develop its Stereax intellectual property in accordance with
its roadmap, which it updates in line with feedback from its pipeline of development
partners. Earlier this month, Ilika confirmed that it had secured a partnership 
with the bioelectronics company Galvani Bioelectronics (“Galvani”), focused on optimising
the Stereax platform for use in neurostimulators. Bioelectronics is a rapidly developing
market with large opportunities that match the unique benefits that Stereax offers.
Stereax’s high volumetric energy density, manufacturability at mm-scale and the 
ability to deliver pulses of power are ideal for such devices. Galvani is a particularly
suitable partner, given the substantial technological and financial backing it has
from its parent companies, [GlaxoSmithKline](https://www.directorstalkinterviews.com/ftse-company/glaxosmithkline-plc/gsk.l)
and Verily (part of the Alphabet group, formerly known as Google).

Towards the end of last year, Ilika announced the start of a funded collaborative
project with Sharp Laboratories of Europe (“Sharp”) to create a device consisting
of an integrated StereaxTM solid-state battery and a photovoltaic panel, offering
an autonomous energy harvesting device for wireless components. The initial concept
was designed to address opportunities in automotive and wearables, but publicity
around the project has also attracted interest from consumer goods companies looking
for innovative ways to promote their products in retail outlets.

The next product milestone on Ilika’s Stereax roadmap is its industrial battery,
code-named Endeavour, which will be able to operate in an extended temperature range
covering -40 to 150 degree Celsius. This battery is designed to meet the requirements
of Industrial IoT, sometimes called Industry 4.0. A discussion of applications is
covered in our recently-posted video featuring Meggitt and IBM which can be found
here – [http://www.ilika.com/news/videos](http://www.ilika.com/news/videos).

Materials development programmes

While the Company is deploying most of its operational and commercial resources 
on Stereax activities, it has also seen an increase in materials development programmes
on its high throughput technology platform. Last month Ilika announced that it had
received notification of a renewal of the commercial relationship it has with Seagate
Technology Plc (LON:STX) to develop photonic materials and processes for Hard Disk
Drive (“HDD”) technology.

Ilika has also recently announced the renewal and strengthening of its long-standing
relationship with Toyota. This has been triggered by the award of a contract by 
the Toyota Research Institute in the USA, which was founded at the end of 2015 with
an initial focus on artificial intelligence, robotics and materials innovation.

The Company will announce a more detailed update on the outturn for 2016/17 in May
prior to issuing its full year results in July.

> **Graeme Purdy, CEO of Ilika Plc, commented:** “We are continuing to see a reinforcement
> of our customer relationships, with long-standing partnerships with companies 
> like Toyota and Seagate being further cemented. It’s also great to see the upturn
> in revenues relative to last year allowing us to start 2017/18 with such a strong
> order book. The number of potential licensees, their level of interest and the
> diversity of applications is giving us growing confidence in our licensing model.”

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