Xp Power Share News (XPP)

Wed, 6th Apr 2011 07:51

* Says shortages of Japanese components not to affect it

* Says confident of strong revenue growth for full year



April 6 (Reuters) - Electrical components maker XP Power said its first-quarter revenue rose 37 percent as the share of in-house products rose to more than half, and it was confident of strong growth for the full year.

The Singapore-based company said high levels of inventory would offset the shortage of components from Japan due to the recent earthquake and tsunami.

'These are largely limited to capacitors and connectors, of which we routinely retain high levels of safety inventories,' the company said.

XP Power said its products designed and manufactured in house accounted for 53 percent of revenue in the first quarter, compared with 48 percent of revenue for the year ended Dec. 31.

It is aiming to get three-fourth of its revenue from its own products, which will result in better margins.

The company makes power converters for healthcare, military and industrial markets, such as respirators and battlefield communication kits.

XP Power said its market share in the key industrial, healthcare and technology sectors was rising.

In February, the company said it had an 8 percent share in a fragmented market worth about 1.2 billion pounds ($1.92 billion).

Shares of the company have gained almost 9 percent since Feb. 21, when it posted strong results for full-year 2010. They closed at 1760 pence on Tuesday on the London Stock Exchange.

(Reporting by Purwa Naveen Raman in Bangalore; Editing by Don Sebastian) Keywords: XPPOWER/

(purwa.naveen@thomsonreuters.com; +91 80 4135 5800; Reuters Messaging: purwa.naveen.thomsonreuters.com@reuters.net)

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