Quantcast

XP Power Limited: Trading Update

May 15, 2009

LONDON, May 15 /PRNewswire-FirstCall/ — 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
30 June 2009 on 3 August 2009.

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.

SOURCE XP Power Ltd


Source: newswire



comments powered by Disqus