Xaar PLC Trading Statement (9048W)
November 20 2017 - 1:00AM
UK Regulatory
TIDMXAR
RNS Number : 9048W
Xaar PLC
20 November 2017
Xaar plc
Trading Update
Xaar plc ("Xaar"), a world leader in industrial inkjet
technology, provides a trading update today.
Further to our interim results statement in September and our
earlier trading update in July, in which we indicated that growth
in revenues from new products was expected to be second half
weighted, the board now expects that revenue in the second half
year will be broadly in line with the first half. The shortfall
against previous expectations results largely from fewer than
planned new printer installs of Xaar's 2001 Printhead, and slower
than anticipated ramp up of the Xaar 1201 Printhead due to supply
constraints.
In ceramics, the printhead replacement business is now
anticipated to represent c.70% of revenues in 2017. The new 1003
Printhead has performed strongly in this market but as competition
for new printer installs continues to intensify, we have seen more
limited success with the 2001 product.
Demand for the 1201 Printhead remains strong, but due to supply
constraints, we have not been able to fulfil all of the demand this
year. We expect supply will improve with new capacity coming on
stream next year, and we continue to expect significant growth in
2018.
Although disappointed by the revenue shortfall on the underlying
business, we are encouraged by our reducing dependence on our
legacy ceramics business, where there is little visibility, and
increasing competitive pressure. Our 2020 vision and commitment to
delivering growth from new products in new markets is undiminished
but the timing of ramp up of the range of new products we have
introduced remains less predictable. In 2017 we expect that 80% of
our underlying revenues will be from the seven new products
introduced and new businesses acquired in the last two years. This
progress, together with our previously announced increased
investment in sales and marketing, supports our continuing
transformation to a more diversified and customer-centric
company.
Enquiries:
Xaar plc
Doug Edwards, Chief Executive
Officer
Lily Liu, Chief Financial
Officer +44 (0)1223 423 663
Tulchan Communications
James Macey White
David Ison
Deborah Roney +44 (0)20 7353 4200
About Xaar
Xaar is a world-leader in the development of inkjet technology
and manufacture of piezoelectric drop-on-demand industrial
printheads. The company also develops and sells ink systems,
electronics and fluid optimisation services to accelerate inkjet
system development and adoption. Xaar printheads incorporate
patented technology, which delivers unbeatable performance when
decorating, patterning, depositing functional coatings on, or
adding structure to, a variety of industrial and consumer products.
Today leading manufacturers worldwide, in sectors ranging from
ceramics, wide-format graphics and labels to direct-to-shape
packaging and decorative laminates, choose Xaar's printheads
because they are extremely precise, exceptionally versatile,
incredibly reliable, and designed for high-volume production.
Additional information about Xaar is available at www.xaar.com
This information is provided by RNS
The company news service from the London Stock Exchange
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