7th Dec 2006 07:01
Xaar PLC07 December 2006 FOR IMMEDIATE RELEASE 7 December 2006 Xaar plc TRADING UPDATE FOR YEAR ENDING 31 DECEMBER 2006 Xaar plc ("Xaar" or the "Company"), the inkjet printing technology groupheadquartered in Cambridge, UK, presents an update on its expected performancefor the year ended 31 December 2006. Ian Dinwoodie, Xaar's Chief Executive said: "We are pleased that we can now move on from the issues which have affectedperformance during the past six months, allowing us to focus our efforts ondriving future growth." Results for 2006 Xaar is pleased to report that sales to China have recovered progressively sincethe Company's trading update in early August and are now expected to recoverfully by early 2007. The new logistics arrangements for the Chinese market have been implemented andare working well with product shipped directly into mainland China forcollection by customers from one of two bonded warehouses. This has created arobust platform for future sales to the region. As part of the new tradingarrangements, the Company has implemented sterling pricing and invoicing. Thisreplaces the previous invoicing currency, the US dollar, and has removed themajority of the Company's US dollar exposure. The Company's Platform 2 product, the OmniDot, continues to generate interestand product launches incorporating it are expected during the course of 2007. Subject to trading for the remainder of December, it is anticipated that theresults for the year will be in line with Directors' expectations. New production facility The Company's new Huntingdon production facility, which will manufacture theXaar 1001 (HSS) product range, is on target to begin commercial production inJanuary next year. Interest continues to build in this product range and theCompany expects its test partners to begin commercialising equipment over thenext twelve months. Initially the fixed costs of the new production facility are expected to be£2.5m per annum; these costs, and the associated early sales revenues from theXaar 1001, will be reflected in the results of the Company for the first time in2007. Whilst this is expected to have an effect on overall reported margins, theDirectors view the coming year with confidence. Announcement of preliminary results for 2006 Detailed results for the year to 31 December 2006 are expected to be released onThursday 15 March 2007. Contacts Xaar plc: 01223-423663Ian Dinwoodie, Chief ExecutiveNigel Berry, Group Finance Director & DeputyChief Executive Bankside Consultants:Steve Liebmann or Simon Bloomfield 020-7367-8883 / 07802-888159 Notes 1 Nothing in this announcement is intended to constitute a profit forecast or estimate or to mean that Xaar's future revenue, profits or earnings per share will necessarily match or exceed those for any previous period. 2 This announcement contains statements that are or may be forward-looking with respect to the financial condition, results of operations and businesses of Xaar. These forward-looking statements include risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors which could or may cause actual results or developments to differ materially from those expressed or implied by such forward-looking statements. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Xaar