According to preliminary estimates, XTPL generated revenue of 2.8 million PLN from the sale of products and services in the first quarter of 2024, compared to 3.0 million PLN in the same period last year. During this quarter, the company delivered a total of four Delta Printing System devices to its customers. The estimated cash balance of the company at the end of March 31, 2024, was 22.0 million PLN, a change from the estimated 27.1 million PLN at the end of the fourth quarter of 2023. This change is due to the implementation of the Strategy for 2023-2026 and investments including increasing production capacity, team expansion, and efforts to boost sales in subsequent periods. XTPL aims to achieve 100 million PLN in revenue from the sale of products and services by the end of 2026.
The number of employees at the end of the first quarter of 2024 was 90, a doubling over the past 12 months. Additionally, the production capacity of the Delta Printing System devices has been increased, allowing for approximately twice the speed of delivery. This creates the potential for a significantly higher number of deliveries during the most favorable period for this business line, the second half of the year.
Recent months at XTPL have been marked by significant investment outlays closely linked to the implementation of our Strategy for 2023-2026. A key element of this strategy is the substantial scaling of revenue from the sale of products and services to 100 million PLN by the end of 2026 and achieving the first industrial implementations of our technology in the production lines of global advanced electronics manufacturers. For this purpose, we have doubled our team, now counting 90 experts, and filled all key departments, allowing us to operate in a new, target structure suited to our strategic plans. Coupled with our investments in increasing production capacity and intensifying sales activities, this provides a strong basis for future growth. A key support in the revenue scaling process is Urs Berger, hired in 2024 as the Sales Director for North America. We are already seeing the first effects of strengthening our presence there with another order of the Delta Printing System for an industrial customer in the USA. In the second half of the year, we will launch a stationary sales and demonstration center, which will allow us to further establish ourselves in this promising market. According to our knowledge and industry signals, XTPL’s offer may encounter broad interest there, says Filip Granek, President of the XTPL Board.
XTPL commercializes three business lines and generates additional revenue from grants that co-finance some of the R&D projects carried out. In the first quarter of 2024, the company did not raise new funds from grants compared to 0.6 million PLN in the corresponding period last year, although it can show revenue from this title due to the settlement of grant advances. At the end of 2023, XTPL completed two grant projects and currently continues one international project in a consortium under the Horizon Europe program and is preparing to launch another international project in a consortium. Additionally, XTPL is currently involved in several processes related to obtaining further grants for innovative projects related to its activities.
Looking forward to 2024, we again aim to increase the number of Delta Printing System (DPS) devices sold, which will be significantly aided by our new organizational structure and additional production and assembly positions—currently, we can fulfill DPS orders twice as fast. Based on ongoing business discussions and preliminary agreements with clients, and considering the statistically better second half of the year for the DPS business line, we have already secured key components for production, anticipating future orders. A series of investments aimed at increasing sales in subsequent periods is behind us and were essential actions for the realization of our Strategy for 2023-2026, made possible by the public offering completed last year. We currently have a comfortable level and structure of employment, increased production capabilities across all business lines, and a number of new international distributors for our solutions. Gradual translation of these investments into sales growth will progressively support our cash flow, says Jacek Olszański, Board Member for Finance at XTPL.
XTPL’s business model is based on three complementary business lines: modules for industrial implementations on production lines of global electronics manufacturers, Delta Printing System (DPS) prototyping devices, and High Performance Materials (HPM, nanoin-ks). The company has a total of nine projects aimed at industrial implementations of its technology, with four projects at advanced stages of development covering three strategic areas for the company: semiconductors, displays, and advanced PCBs. The combined potential from all nine currently developed industrial projects, assuming positive validation, the company estimates at approximately 400 million PLN in annual revenue. The final customers are global entities responsible for the production of next-generation electronics, including a leading semiconductor manufacturer from Taiwan, one of the largest FPD (Flat Panel Display) manufacturers from South Korea, and a leading industrial machinery manufacturer listed on Nasdaq 100 from the USA.
The XTPL strategy for 2023-2026 focuses on two main areas of activity. The first is the development of the business and sales to achieve commercial revenues of 100 million PLN by the end of 2026 and achieve the first industrial implementations of XTPL technology on an industrial scale. Additionally, it plans to expand the developed projects into new industries such as telecommunications and biosensors, as well as further expand the international network of distributors and establish stationary sales centers in key technological destinations: USA, Taiwan, South Korea. The second area is the operational development of the entire organization to significantly increase production capabilities in all three business lines and continue R&D work on the existing portfolio and future products of the company. As a result, XTPL is building a strong and recognizable brand in the global market of entities specializing in ultra-precision printing technology for the electronics industry.
