LONDON, May 15 /PRNewswire/ -- 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.
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