Xaar expects strong sales growth
Inkjet printing technology Xaar expects third quarter revenues to be in line with its expectations
The Cambridge-based firm said in its Interim Management Statement, covering trading from 1 July 2012, that sales continued to grow through the period, which resulted in a record revenue performance for the quarter.
According to the firm, the Board continue to anticipate further growth in sales in the fourth quarter, with the outlook for full year revenue in line with expectations.
Xaar said that gross margin in the third quarter was slightly higher than the margin achieved in the first half of the year, as production efficiencies from increased output more than offset the impact of the previously announced volume price discounts.
Overall gross margin in the second half of 2012 is expected to be at least as strong as the first half of the year, the firm said.
Operating profit in the third quarter benefited from the growth in both sales and gross margin although, as planned, the continued increase in investment in R&D resulted in a higher level of operating costs. The outlook for 2012 profitability continues to be in line with the Board’s expectations, according to Xaar.
The Group’s balance sheet remains strong with net cash at 30 September 2012 of £18.8 million (30 June 2012: £15.7 million, 31 December 2011: £17.4 million).
On Tuesday 23 October, Xaar is hosting an open day for investors and analysts at its Huntingdon manufacturing facility.
According to the firm, the purpose of the event is to explain how Xaar’s technology adds value in the end markets in which it operates, and to highlight the long term potential for digital inkjet. No new information will be presented.
