2nd Oct 2014 06:43
LONDON (Alliance News) - Xaar PLC Thursday said it now expects revenue for the full year to be 5%-10% below the bottom of its previously guided range of GBP115-125 million, citing further reduced orders from its original equipment manufacturer partners in the ceramic tile market in China.
In a statement, the digital inkjet printing technology group said that monitoring of the ceramic tile market in China has indicated a further decline in activity, prompting the revision of its revenue guidance for 2014.
Xaar said it is now planning to cut costs in anticipation of revenue for 2015 being below GBP100.0 million, though it said visibility into 2015 remains low. The group expects its cost-cutting actions to result in a 15% reduction in operating expenditures, and potentially a total reduction in headcount of about 20% of its 800 employees.
"We are highly disappointed to have to make this level of cost reduction given the progress achieved over the last four years. Our exposure to the ceramic tile market in China, which delivered such strong growth over the last few years, is now driving a reduction in our sales. This change re-emphasises the need for Xaar's revenues over time to become more broadly spread across multiple markets and applications," Chief Executive Ian Dinwoodie said in a statement.
Xaar shares Wednesday closed flat at 367.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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