Xaar Regulatory News (XAR)

13 May 2008 06:00



Xaar plc

INTERIM MANAGEMENT AND AGM STATEMENT

Xaar plc ("Xaar"), the inkjet printing technology group headquartered in Cambridge, is holding its Annual General Meeting today and is providing an Interim Management Statement covering trading from 1 January 2008 to date.

Trading to date in 2008 has followed its historic pattern. The first quarter of the calendar year is Xaar's quietest trading period due to the Chinese New Year holiday period and, therefore, is not indicative of any trend for the year as a whole. Since the end of the first quarter momentum is now building as the second quarter progresses. China is by far the largest market for Platform 1 products which currently comprise the bulk of sales.

Progress in OEM (Original Equipment Manufacturer) product launches incorporating Xaar's new Platform 2 and Platform 3 product ranges is encouraging with 12 committed product launches made public to date. A number of other announcements are expected to be made during the forthcoming Drupa 2008 international trade show to be held in Dusseldorf from 29 May to 11 June 2008.  Volumes of these new products are expected to grow through the balance of 2008 and begin to contribute significantly over the next few years.

The next stage of growth for the company is directly related to the rate of adoption of Xaar's new Platform 2 and, more significantly, Platform 3 products and their successful implementation remain the company's primary goal. Sales of these new products are expected to be incremental to the sales of the existing Platform 1 products which continue to provide a solid base for the company.

Gross margins across the product range are stable, operating costs continue to be controlled successfully and trading for the company as a whole for 2008 is in line with Directors' expectations.

Ends

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