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Trading statements

Xaar sales up

06 September 2017 07:28

Xaar said revenue in the first half of 2017 was in line with the Board's expectations at £44m.

Revenue excluding licensee royalty grew by 5%. Product revenue outside of Ceramics grew by 60%. The revenue from Engineered Printing Solutions (EPS) for the first half of the year was £6.5m.

FINANCIAL HIGHLIGHTS:

- Profitability consistent with the first half of 2016; gross margin of 47% (H1 2016: 45%); product gross margin was 43% (H1 2016: 36%); and adjusted operating profit margin of 18% (H1 2016: 19%)

- Net cash at 30 June 2017 of £38.3m (31 December 2016: £49.3m), after investment in Thin Film Platform and working capital

- Interim dividend up 3% to 3.4p per share (2016: 3.3p per share)

OPERATIONAL AND STRATEGIC HIGHLIGHTS:

- Announcement of the joint development agreement with Xerox to develop the next generation of Industrial Bulk piezo printheads using the extensive combined resources and IP of both companies. The efficiency gains from this agreement will allow Xaar to redeploy resources to strengthen the go-to-market functions to transform the business to become more customer-centric

- First printhead arising from Xerox collaboration, the Xaar 5501 printhead, generates its first revenues

- Good progress achieved in launching the new Thin Film printhead 1201, with a master distribution agreement signed for two years for +90,000 printheads

- 5,601 design frozen, first development kits shipped, capitalisation stopped at the end of July

- Establishing European distribution channel for EPS digital product portfolio

CEO Doug Edwards commented: "We are making good progress in transforming Xaar to a more diversified and customer-centric company.

"I am particularly pleased with the new product revenue streams we are delivering in Product Printing & Packaging, Graphic Arts, 3D and Advanced Manufacturing.

"Product revenue in the first half, outside of Ceramics, has grown by 60%.

"This transformation is not easy so I would like to thank all of our staff for their continued hard work and dedication as we continue to lay the foundations to deliver our 2020 vision."

Story provided by StockMarketWire.com

Related Company: XAR

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