xaar plc (XAR) Snapshot

Xaar plc revised sales guidance for the full year of 2013. Demand for Xaar's technology has continued to accelerate across the Industrial, Packaging and Graphic Arts sectors resulting in very strong product sales through the period January to May 2013. The strongest demand increase has again come from ceramic tile printing, where Xaar's market leading technology is driving the digitalisation of ceramic tile decoration worldwide. Xaar's products enable tile manufacturers to achieve superior image quality, reduced cost, and increased process flexibility when compared to the incumbent analogue process. This higher level of sales performance is now expected to continue through the remainder of the year and, as a result, the Board has increased its expectations for 2013 revenue. The Board now expects full year revenue for 2013 to grow approximately 50% above the £86.3 million achieved in 2012. Whilst the growth in R&D spend is expected to broadly match the percentage increase in revenue, the Board anticipates that in 2013 revenue will grow at a higher rate than the increase in total operating expenditure, which will result in a very strong operating margin for the year.

Xaar plc, Annual General Meeting, May 16, 2013., at 09:30 GMT Standard Time. Location: 316 Science Park.

Xaar plc announced interim management statement for the first quarter of 2013. Trading for the period was strong, with sales in the first three months of 2013 growing significantly over the first quarter of 2012. Sales also grew strongly versus the fourth quarter of 2012, which is in contrast to historic seasonal patterns with sales in the first quarter normally lower than the preceding quarter because of the impact of Chinese New Year. As a result of this higher level of sales, product gross margins also improved and were ahead of those achieved in the second half of 2012. The Board remains confident that strong growth in revenue and profit will be achieved in 2013 versus 2012.