TIDMXAR
RNS Number : 6219Q
Xaar PLC
16 April 2009
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| FOR IMMEDIATE RELEASE | 16 April 2009 |
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Xaar plc
INTERIM MANAGEMENT STATEMENT
Xaar plc ("Xaar" or "the Group"), the inkjet printing technology group
headquartered in Cambridge, is providing an Interim Management Statement
covering trading from 1 January 2009 to 31 March 2009.
Trading for the first quarter of the year, historically the Group's quietest
trading period due to the Chinese New Year holiday in February, was in line with
the Board's expectations at a level similar to that for Q1, 2008 and was stable
at the levels seen in the third and fourth quarters of 2008.
The first of Xaar's new second generation Platform 1 products, the Xaar Proton,
was successfully launched during the period at the Sign China show in Guangzhou.
Following the launch, sales of the Proton into China have been ahead of the
Board's expectations. The Proton will be released into India and Latin America
during the course of 2009 as the Group's OEM customers in those regions launch
new printing machines incorporating the printheads. The Xaar Electron, the
second new Platform 1 product, remains on course for its launch in customer
printing machines at the Shanghai Ad show in early July.
Original Equipment Manufacturers in western markets continue to launch printing
machines based on Xaar's Platform 3 (P3) technology with further product
launches during the period. Whilst the number of OEM customers bringing printing
machines based on P3 technology to market is encouraging, the transition from
product launch to volume sales remains slow and cannot be expected to be immune
from the effects of the global economic situation.
The Group has maintained its strong balance sheet throughout the period with
gross cash at 31 March 2009 of GBP12.4m (31 December 2008: GBP11.6m).Total debt
at 31 March 2009 was GBP0.6m (31 December 2008: GBP0.6m). The cash
inflow during the period reflects both stable trading and the benefits of
previously announced cost saving measures.
On 1 April 2009 the Group announced the rationalisation of its manufacturing
facilities which will involve the eventual closure of its plant in Stockholm,
Sweden and the relocation of that manufacturing capability to the Group's
manufacturing facility in Huntingdon, England. This process is expected to take
up to two years to complete and is expected to result in a substantial reduction
in the Group's cost base.
The Board is encouraged by trading in Q1 but, given both a continuing lack of
visibility of customer orders and the current uncertainty in the business
environment due to the ongoing global economic situation, must remain cautious
when looking forward.
Ends
CONTACTS
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| Xaar plc: | 01223-423663 |
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| Ian Dinwoodie, Chief Executive | www.xaar.com |
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| Andrew Taylor, Finance Director | |
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| Bankside Consultants: | |
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| Steve Liebmann | 020-7367-8883 / 07802-888159 |
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This information is provided by RNS
The company news service from the London Stock Exchange
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