Xaar PLC Scheduled Trading Statement (8880R)
December 15 2016 - 1:00AM
UK Regulatory
TIDMXAR
RNS Number : 8880R
Xaar PLC
15 December 2016
15 December 2016
Xaar plc
Scheduled Trading Statement
Xaar plc ("Xaar", "the Group" or "the Company"), the digital
inkjet printing technology Group headquartered in Cambridge, UK,
announces an update on trading for the period beginning 1 July
2016.
The Board now expects total revenue in the second half of 2016
to be similar to the GBP44.5 million recorded in the first six
months of the year, before taking account of revenue delivered by
the acquired EPS business which contributed to the Group from 1
July 2016. The Board's expectation for overall full year earnings
remains unchanged.
In ceramic tile printing ("Ceramics"), initial demand for Xaar's
new 2001 and 2001+ printheads is strong following the launch of
those products in September. Longer than expected customer printer
re-designs and manufacturing ramp up, combined with the competitive
pressures we have previously highlighted in this sector, are
expected to result in lower Ceramics sales in the second half of
2016 than previously anticipated. The products launched this year
position the Company well in terms of maintaining Xaar's market
leading position and supporting our OEM partners in 2017 and
beyond.
In Packaging and Product Printing, sales are ahead of
expectations. All packaging sub-sectors, including labels, coding
& marking and direct to shape, are delivering organic growth
ahead of both H1 2016 and H2 2015 sales. Engineered Printing
Solutions ("EPS"), the US product printing equipment company
acquired on 1 July 2016, is performing to plan and a smooth
integration into the Xaar Group has been achieved.
Initial demand is high from our partner OEMs for the new Thin
Film printheads launched this year, the 5601 and the 1201. Both
products are on track to provide significant revenue contributions
in 2017.
Revenue from Xaar's licensing business has again been strong in
the second half of 2016, through a combination of favourable
exchange rates, higher licensee royalties and a significant royalty
audit resolution. Royalty related revenue in the second half of
2016 is therefore expected to be similar to the total recorded in
the first six months of the year.
The Company expects to announce its 2016 full year results on 22
March 2017.
This announcement has been determined to contain inside
information.
Contacts
Xaar plc
Alex Bevis, CFO +44 (0)1223-423663
Doug Edwards, CEO www.xaar.com
Tulchan Communications
James Macey White +44 (0)20-7353-4200
This information is provided by RNS
The company news service from the London Stock Exchange
END
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