29 Jan 2020 07:00
29 January 2020
Quixant plc
("Quixant" or the "Group")
Trading Update and Notice of Results
Quixant (AIM: QXT), a leading provider of innovative, highly engineered technology products principally for the global gaming and broadcast industries, today provides an update on trading for the year ended 31 December 2019.
The Board expects to report revenue for the year of $92.3m and adjusted profit before tax of $10.7m. The majority of the shortfall against expected revenue has been experienced in the Gaming Division which has had a consequential impact on profit.
Net cash at 31 December 2019 was $16.2m.
Jon Jayal, CEO of Quixant, commented:
"The previously announced softness in demand from several of our gaming customers has continued for a longer period and been slightly more pronounced than previously anticipated. This has impacted our financial performance in the Gaming Division over the second half of the year. We are confident in delivering healthy growth in 2020, however, the recent softness has led to having a more conservative view on the level of growth and we are reviewing costs in line with this lower revenue expectation. We have initial orders for significant new business which we believe will contribute to sustained growth into 2021.
"Within Densitron, our new product lines in the Broadcast sector have replaced lost revenue in the core Densitron business as these lower margin products go end of life. We expect this to continue into 2020 and therefore revenue within Densitron to be broadly flat.
"The Group remains profitable and cash generative with a strong balance sheet. The long-term market fundamentals remain intact and we look forward to providing more detail at the time of results in March."
Notice of Results
The Group's results for the full year to 31 December 2019 are expected to be announced on 23 March 2020.
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
For further information please contact:
Quixant plc | Tel: +44 (0)1223 892 696 |
Jon Jayal, Chief Executive Officer Guy Millward, Chief Financial Officer |
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Nominated Adviser and Broker: |
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finnCap Ltd | Tel: +44(0)20 7220 0500 |
Matt Goode / Simon Hicks (Corporate Finance) |
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Alice Lane (Corporate Broking) |
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Financial PR: | Tel: +44 (0) 20 3405 0205 |
Alma PR |
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John Coles / Hilary Buchanan / Kieran Breheny |
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About Quixant
Quixant, founded in 2005, designs and manufactures highly optimised computing solutions and monitors principally for the global gaming industry. The Company is headquartered in Cambridge in the UK where the global sales function is based. North America sales and sales support is run from their subsidiary in Las Vegas. Quixant has its own manufacturing and engineering operation based in Taiwan and software engineering and customer support team based in Italy. All the specialised products software and manufacturing are produced in-house and Quixant owns all its own IP some of which is protected by patents and design rights.
In November 2015 Quixant acquired Densitron Technologies plc. Densitron has a strong heritage in the sale of electronic display solutions to global industrial markets. Through Densitron's experienced sales team, Quixant has a robust platform to build its business into wider industrial markets. In-depth information on the Company's products, markets, activities and history can be found on the corporate website at www.quixant.com.