Currency in GBP
Last close As at 26/05/2023
GBP21.35
▲ −75.00 (−3.39%)
Market capitalisation
GBP421m
Research: TMT
On Friday 30 September, the judge in the COMET trades secret misappropriation case confirmed the jury award and imposed an injunction on XP Power in relation to certain trade secrets. With the award and related legal fees already provided for, and no current business using the trade secrets, we make no changes to estimates. The company will provide a Q322 trading update on 11 October but confirmed that trading in Q3 had improved from the H122 run rate.
XP Power |
Update on COMET legal action |
Litigation update |
Tech hardware and equipment |
3 October 2022 |
Share price performance Business description
Analyst
XP Power is a research client of Edison Investment Research Limited |
On Friday 30 September, the judge in the COMET trades secret misappropriation case confirmed the jury award and imposed an injunction on XP Power in relation to certain trade secrets. With the award and related legal fees already provided for, and no current business using the trade secrets, we make no changes to estimates. The company will provide a Q322 trading update on 11 October but confirmed that trading in Q3 had improved from the H122 run rate.
Year end |
Revenue (£m) |
PBT* |
Diluted EPS* |
DPS |
P/E |
Yield |
12/20 |
233.3 |
44.3 |
198.4 |
74 |
8.4 |
4.4% |
12/21 |
240.3 |
43.8 |
176.3 |
94 |
9.5 |
5.6% |
12/22e |
271.6 |
42.9 |
172.8 |
94 |
9.7 |
5.6% |
12/23e |
295.8 |
54.8 |
221.0 |
97 |
7.6 |
5.8% |
Note: *PBT and EPS (diluted) are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
In March, in a trade secrets misappropriation case brought by COMET Technologies USA, a jury awarded damages of $40m against XP. On Friday 30 September, the judge for the case confirmed the jury’s decision to award damages to COMET and imposed an injunction on XP against using three of the four trade secrets in question. The board is considering next steps, including potentially asking the judge to review the level of damages. As previously confirmed by management, the company has no current orders or revenue based upon the RF technology covered by the injunction. The damages award and related legal fees were provided for in H122.
Separately, the company noted that trading in Q322 had improved from the run rate in H122, a period in which component shortages and China’s COVID-19 lockdown combined to reduce the amount of product XP was able to ship, even while order intake increased 23% y-o-y.
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Research: Healthcare
OpGen has announced a $3.38m (gross) fund-raising through a private placement to an existing healthcare-focused institutional investor. This is in exchange for a combined 9.66m of common stock and pre-funded warrants at $0.35/unit plus an additional 33.8k shares of series C preferred stock. The investor was also issued warrants to purchase up to an aggregate of 9.66m in common stock, at an exercise price of $0.377/share. The offer is expected to close on 3 October 2022 and is subject to shareholders’ approval. Proceeds from the fund-raising are expected to be utilized in accelerating development of the company’s pipeline, capex and working capital needs and repayment of the EIB loan. Our overall valuation goes up to $84.6m due to additional cash available although per share valuation goes down to $1.46/share due to a higher share count (previously $1.70/share).
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