Issuer: XTPL S.A.
/ Key word(s): Quarter Results/Quarterly / Interim Statement
Press Release Wroclaw, May 22, 2024
Following the investments completed in Q1 2024, XTPL is poised for increased orders in subsequent periods
XTPL (WSE:XTP) in the first quarter of 2024 achieved PLN 2.9 million in total revenues, including PLN 2.7 million in revenues from the sale of products and services. The key revenue driver was the delivery of four Delta Printing System devices, twice as many as in the year-ago period. Q1 2024 saw intensified investment activity related to the implementation of the 2023-2026 Strategy and the process of scaling up the XTPL business with the goal of achieving PLN 100 million in commercial sales by the end of 2026. The Company significantly increased employment to 91 people as at the end of March, a target level that is deemed optimal to aid the Strategy execution. XTPL has also increased its production capacity in each of the three business lines, and halved the duration of the process of building DPS devices. As a result, the Company is poised for a major increase in sales over the Strategy horizon, looking forward to the second half of the year, traditionally the best season for its business. XTPL is also strengthening its activity on the US market, aiming to open a Demo Center in the coming months. "It's been 6 months since XTPL adopted its ambitious development vision outlined in the 2023-2026 Strategy. Our key direction is to strongly scale up our organization to achieve PLN 100 million in commercial sales by the end of 2026 and to carry out the first implementations of the XTPL technology on the industrial lines of global manufacturers of advanced electronics. The Company's activities in the first quarter of 2024 centred on intensified investments designed to realize this ambitious development vision and appropriately prepare the Company for the significant increase in revenues from all our three business lines anticipated over the Strategy horizon. We're now very well prepared for this" says Filip Granek, CEO of XTPL. "In the first quarter, we made an important decision to strengthen our presence on the US market. We hired Managing Director for North America, who has international experience in additive manufacturing and printed electronics. We also started preparations for the opening of the first Demo Center in Boston in the second half of 2024. These activities were accompanied by another success: an order for a DPS device from a US-based industrial client. And in the coming weeks we're going to attend several key industry conferences in the United States, including: The Electronics Components and Technology Conference (ECTC) in Colorado and TechBlick The Future of Electronics Reshaped in Massachusetts" Filip Granek adds. In Q1 2024, XTPL achieved PLN 2.9 million in total revenues, including PLN 2.7 million in revenues from the sale of products and services compared to PLN 3.6 million and PLN 3.0 million, respectively, in the same period last year. The difference between the two figures is due to grants, as the Company is currently implementing an international project as part of a consortium under the Horizon Europe program and looking towards the launch of another project around September this year. In Q1 2024, EBITDA was PLN -5.1 million, reflecting the Company's stepped up investment activities related to the delivery of its Strategy and implementation of the plan aimed at scaling up XTPL's business. As at March 31, 2024, the cash position was PLN 19.4 million, a result of investments in key areas: sales, production capacity and R&D. "The increase in costs and expenses in the first quarter of 2024 is primarily attributable to investments in scaling up our business, but is also related to a change in our sales mix: we delivered twice as many DPS devices to our clients as a year ago. The remaining items include the historically highest recruitment rate with an increase in employment from 53 to 91 staff members at the end of March 2024, including an increase in B2B contracts. Marketing and sales activities increased significantly, including the unveiling and positioning of a new website, as well as activity at international shows and industry conferences. In the first months of the year, we also incurred the costs of building a DPS for marketing purposes (a demonstration device) and rolled out an ERP system for process management throughout the organization. In addition, we provided new equipment for our laboratory. The pronounced increase in inventories is due to the decision to secure key components for the construction of DPS devices and industrial modules. As a result, we're well prepared for the second half of the year, the best business season. We've increased production capacity and halved the duration of the DPS construction process, which will allow us to deliver more devices in the coming quarters compared with what we were able to do just a few months before" says Jacek Olszanski, CFO of XTPL. "Processes related to industrial implementation remain on top of our agenda. We have 20 projects started here, 9 of which are at least at the second stage of progress, and 4 at a very advanced fourth stage: development of a large prototype industrial device with our module in it. The device is already at one of our end customers, a leading manufacturer of FPDs from South Korea, with subsequent devices being built or modules delivered as we speak. It should be noted that the first full implementation will be the final confirmation of the readiness of our technology to become part of the global value chain related to the production of advanced electronics by the world's largest manufacturers" Jacek Olszanski adds. XTPL's business model is based on three complementary business lines. These are printing modules for industrial implementation on the production lines of global manufacturers of electronics, the Delta Printing System (DPS) prototyping devices, and High Performance Materials (HPM, nanoinks). The Company has nine projects aimed at industrial implementation of its technology, which are at least in the second stage of that process. Most advanced are four projects covering areas the Company considers strategic: semiconductors and displays. The total potential of those nine industrial projects, assuming they are positively validated, is estimated by the Company at around PLN 400 million in average yearly revenues. The Company's end customers are global entities responsible for the production of next generation electronics, including a Chinese manufacturer of machines for the sector of modern displays, a leading semiconductor manufacturer from Taiwan, one of the world's largest producers of FPDs (Flat Panel Displays) from South Korea and a top manufacturer of industrial machines from the United States, listed on the Nasdaq 100 index.
XTPL S.A. is a deep-tech company providing ground-breaking precision printing solutions for the global microelectronics market. The company develops and commercializes products and solutions relying on its globally innovative Ultra-Precise Dispensing (UPD) platform technology protected by international patent applications. The technology enables ultra-precise deposition of conductive features with a resolution from 1 µm to over 50 µm. In the XTPL solution, the ultra-high resolution features are coupled with conductive materials characterized by a very high concentration of metallic nanoparticles and high viscosity. This combination makes the solution unique on a global scale. The innovative additive method designed by the company can be used in the fast-growing industry of printed electronics, particularly in such areas as semiconductors, displays, biosensors, advanced integrated circuits and security printing. Application areas of the XTPL printing technology can include electronic connections in advanced integrated circuits, 3D printed electronics, hybrid flexible electronics and the IoT. XTPL's goal is to license its technological solutions created for industrial implementation in dedicated application fields. The company may also achieve this goal by sales through distributors or strategic partnerships - in this way the cooperation can be geared to the needs of the future counterparty. Since 2019, XTPL S.A. has been listed on the main market of the Warsaw Stock Exchange, and since 2020 on the Open Market in Frankfurt. More information: www.xtpl.com
Additional information is available from:
Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
