Last checked at 15 May 2009 07:00
15 May 2009 XP Power Limited Trading Update
XP Power, one of the world's leading developers and manufacturers of mission critical power control solutions to the electronics industry, is today issuing an update on trading for the four months ended 30 April 2009 in line with its normal practice.
Trading in the first four months of the current financial year has been satisfactory and in line with expectations, with revenues being in line with those achieved in the same period of 2008.
In line with the guidance given in the 2008 full year results statement issued on 23 February 2009, a combination of new programs secured from existing blue chip customers and the favourable benefits from a stronger US Dollar have enabled XP to maintain revenues in line with those of 2008. In addition strong gross margins were maintained as a result of a further increase in the proportion of our own products in the sales mix, which, being developed in-house and based on our own intellectual property ("IP"), are higher margin. In line with its well-established strategy, XP has continued to invest in research and development across its key markets - the industrial, healthcare and technology sectors - to establish a pipeline of class leading products which capitalise on the fundamental and increasing demand for smaller, more efficient and more environmentally friendly power control components.
XP Power's new flagship manufacturing facility in Kunshan, China is due to open this quarter. This investment is crucial not only to meet the growing demand for higher margin products based on XP's own IP but also to secure "approved vendor" status with our blue chip customers, a vital step in growing revenues with them.
Duncan Penny, Chief Executive, commented: "I am pleased to report that trading in the year to date has been in line with our expectations, underpinned by design wins on a number of new blue chip programmes and a stronger US dollar. Our strategy of investing in the development of our own portfolio of XP branded products has continued to support margin growth and the forthcoming launch of our new manufacturing facility will give us the capacity to meet growing demand as we capitalise on the fundamental growth drivers of our core markets."
XP Power expects to publish its interim results for the six months ending 30June 2009 on 3 August 2009. - Ends - Enquiries:XP Power
Larry Tracey, Executive Chairman +44 (0)7785 387142
James Peters, Deputy Chairman +44 (0)7785 353066
Duncan Penny, Chief Executive +65 8322 9520
Citigate Dewe Rogerson +44 (0)20 7638 9571
Kevin Smith/Ged Brumby
Note to editors
XP designs and manufactures power controllers, the essential hardware component in every piece of electrical equipment that converts the power from the electricity grid into the right form for the equipment to function.
XP typically designs in power control solutions into the end products of major blue chip OEMs, with a focus on the industrial (circa 52% of sales), healthcare (circa 22% sales) and technology (circa 26% of sales) sectors. Once designed into a program, XP has a revenue annuity over the life cycle of the customer's product which is typically 5 to 7 years depending on the industry sector.
XP has invested in research and development and its own manufacturing facility in China, to develop a range of tailored products based on its own intellectual property that provide its customers with significantly improved functionality and efficiency.
Headquartered in Singapore and listed on the Main Market of the London Stock Exchange since 2000, XP serves a global blue chip customer base from 27 locations in Europe, North America and Asia.
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