BLUGLASS LIMITED For personal use only
21 July 2022
June Quarter Activities Update
Highlights
- Shipped first alpha products to a customer for testing
- Latest prototypes demonstrating improved light-output and performance
- BluGlass' Silicon Valley facility has been awarded its Environmental Protection Authority (EPA) permit
Australian semiconductor developer BluGlass Limited (ASX: BLG) provides the following update and Appendix 4C Quarterly Report for the three months ended 30 June 2022 (Q4 FY22).
First laser diode products shipped
During the quarter, BluGlass shipped its first fully packaged alpha laser diodes to a customer for integration and testing within the customer's product design and development cycle. BluGlass' 405nm and 420nm multi-mode alpha products are now suitable for customer evaluation. An alpha product is an advanced prototype still in the design phase and is a valuable tool to collect customer feedback in real-world applications.
As these products are still in the design phase, design improvements and customer feedback can be incorporated ahead of beta products and mass production.
BluGlass President Jim Haden said, "Shipping our first prototype products is an important technical and commercial milestone, marking the start of our engagement with potential customers and real-world qualification within future applications. Implementing customer feedback while we are still in the design phase is crucial, as it is very expensive to adapt and change product design and manufacturing processes once you've moved into the beta or volume production phase."
Laser diode progress
The delivery of the Company's first alpha products to customers was enabled by improvements in light-output, electrical performance, and reliability due to enhanced epitaxy, metals, heat management, and packaging. BluGlass has multiple 405nm, 420nm, and 450nm single-mode and multi-mode iterations progressing through the manufacturing supply chain in both short-loop and full-loop cycles.
BluGlass' technical team continues to work with its contract manufacturers to enhance the design and performance of the four key laser diode elements - epitaxy, metals, facets, and bonds - to meet commercial lifetime reliability requirements. Initial laser diodes are being produced by BluGlass' contract manufacturers while the Company's newly acquired Silicon Valley fab is retrofitted for gallium nitride production. BluGlass has been awarded its Environmental Protection Authority (EPA) permit, which allows BluGlass to operate much of the facility and complete the air quality and waste management permits.
"While we are only just beginning to bring our fab online, we are already seeing the significant development cycle benefits that will come with being able to control the entire manufacturing process. The ability to accelerate our development cycles of core components is critical, particularly as we look to finalise product design and release beta products. Short-loop performance data from our latest iterations is encouraging, and we continue to fine-tune production processes to create brighter, better-performing laser diodes that cater to market demand in the 405nm, 420nm, and 450nm wavelengths," said Jim Haden.
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During the quarter, BluGlass demonstrated its best epitaxial optical and voltage performance to date. This next- generation epitaxy design has been extensively modelled and processed through short-loop cycles, demonstrating advanced performance, light-output, and efficiency. These new epitaxy designs are now being released to the wafer fabs for processing into laser diodes.
The Company has now demonstrated successful implementation of 'epi-down' fabrication processing at its contract manufacturers and in-house at its Nashua facility. Epi-down processing is commonly implemented in the industry to significantly improve the heat-management in the laser diode enabling higher power operation. This approach results in a significantly reduced thermal path, better heat management, and paves the way for higher value products.
MOCVD foundry contract
In June, BluGlass' MOCVD epitaxy foundry services contract with a European wafer developer was broadened to include additional GaN applications, which will lead to continued foundry revenues for the Company. The paid development contract has the potential to become a commercial manufacturing agreement.
Financials
Revenues increased over the previous quarter to $249,000 due to additional MOCVD epitaxy foundry services from a European wafer manufacturer.
BluGlass' total net operating expenditure in Q2 FY22 was $2,482k. Research and development expenses, including salaries, materials, and fabrication costs, accounted for $1,998k while non-R&D related staff costs totalled $195k. Payments to related parties in Q2 FY22 were $144k, comprising Executive Chair and Non- Executive Director fees. Cash at end of the quarter was $5.360 million.
Activity Undertaken | Amount paid during the Quarter |
$'000 | |
Laser Diode product development | $1,998k |
Micro LED and LED research and development | $18k |
RPCVD equipment development | $49k |
Total direct expenditure | $2,065k |
Outlook
BluGlass continues to optimise its laser diodes to solve its reliability challenges and secure first commercial orders. Customer feedback from alpha laser diodes will be incorporated into designs leading to product reliability validation, product launch, and subsequent volume production. At the same time, BluGlass will ramp development and manufacturing at its Silicon Valley fab in the coming quarters.
"We've made significant progress in the design and performance of our GaN laser diodes, culminating in sample products being integrated and tested by an initial customer, and we are engaging with other prospective customers. The high level of interest in our alpha products is indicative of the significant unmet demand in the market, reaffirming the need for alternative GaN laser diode suppliers.
"BluGlass has a large and growing addressable market with significant barriers to entry. Our latest performance data and customer interest reaffirms our ability to compete by catering to underserved wavelengths and offering greater flexibility to meet our customer's requirements. Our own production fab is key to executing this strategy, allowing us to expedite development and bring forward next generation products."
This announcement has been approved for release by the BluGlass Board.
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For more information, please contact:
Stefanie Winwood | +61 2 9334 2300 |swinwood@bluglass.com.au
About BluGlass
Developing leading-edge semiconductor manufacturing technology and devices for more than a decade, BluGlass Limited (ASX:BLG) is a provider to the global GaN photonics industries, delivering cutting-edge, custom laser diode and LED development across the industrial, defence, display, and scientific markets.
Listed on the ASX, we are an Australian public company established to power the smarter, cleaner, more efficient photonics of tomorrow with our proprietary low temperature, low hydrogen, remote plasma chemical vapour deposition (RPCVD) manufacturing technology.
Backed by an extensive network of supply-chain partners, BluGlass is developing a suite of laser diode products, from small batch custom lasers through to high-volume and off-the-shelf products.
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Rule 4.7B
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Name of entity
BluGlass Limited | |
ABN | Quarter ended ("current quarter") |
20 116 825 793 | June 2022 |
Consolidated statement of cash flows | Current quarter | Year to date (12 | ||
$A'000 | months) | |||
$A'000 | ||||
1. | Cash flows from operating activities | |||
1.1 | Receipts from customers | 249 | 605 | |
1.2 | Payments for | |||
(a) | research and development | (1,244) | (4,377) | |
(b) product manufacturing and operating | - | - | ||
costs | ||||
(c) | advertising and marketing | (20) | (36) | |
(d) | leased assets | (195) | (529) | |
(e) | staff costs | (1,043) | (4,483) | |
(f) administration and corporate costs | (229) | (1,037) | ||
1.3 | Dividends received (see note 3) | |||
1.4 | Interest received | - | - | |
1.5 | Interest and other costs of finance paid | - | (32) | |
1.6 | Income taxes paid | - | - | |
1.7 | Government grants and tax incentives | - | 3,648 | |
1.8 | Other (provide details if material) | - | - | |
1.9 | Net cash from / (used in) operating | (2,482) | (6,241) | |
activities | ||||
2. | Cash flows from investing activities | |||
2.1 | Payments to acquire or for: | |||
(a) | entities | - | - | |
(b) | businesses | - | - | |
(c) property, plant and equipment | (537) | (3,967) | ||
(d) | investments | - | - | |
(e) | intellectual property | - | - |
ASX Listing Rules Appendix 4C (17/07/20) | Page 1 |
+ See chapter 19 of the ASX Listing Rules for defined terms. |
For personal use only
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Consolidated statement of cash flows | Current quarter | Year to date (12 | ||
$A'000 | months) | |||
$A'000 | ||||
(f) | other non-current assets(Security | (297) | (297) | |
Deposit) | ||||
2.2 | Proceeds from disposal of: | |||
(a) | entities | - | - | |
(b) | businesses | - | - | |
(c) | property, plant and equipment | 361 | 361 | |
(d) | investments | - | - | |
(e) | intellectual property | - | - | |
(f) | other non-current assets | - | - | |
2.3 | Cash flows from loans to other entities | - | - | |
2.4 | Dividends received (see note 3) | - | - | |
2.5 | Other (provide details if material) | - | - | |
2.6 | Net cash from / (used in) investing | (473) | (3,903) | |
activities |
3. Cash flows from financing activities
3.1 Proceeds from issues of equity securities
(excluding convertible debt securities) | 4,053 | 13,889 | |
3.2 | Proceeds from issue of convertible debt | - | - |
securities | |||
3.3 | Proceeds from exercise of options | - | - |
3.4 | Transaction costs related to issues of | (120) | (608) |
equity securities or convertible debt | |||
securities | |||
3.5 | Proceeds from borrowings | - | - |
3.6 | Repayment of borrowings | - | (1,953) |
3.7 | Transaction costs related to loans and | - | - |
borrowings | |||
3.8 | Dividends paid | - | - |
3.9 | Other (provide details if material) | - | - |
3.10 | Net cash from / (used in) financing | 3,933 | 11,328 |
activities |
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period | 4,382 | 4,176 | |
4.2 | Net cash from / (used in) operating | (2,482) | (6,241) |
activities (item 1.9 above) |
ASX Listing Rules Appendix 4C (17/07/20) | Page 2 |
+ See chapter 19 of the ASX Listing Rules for defined terms. |
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Bluglass Limited published this content on 21 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2022 01:23:05 UTC.
