XTPL achieved total revenues of PLN 2.9 million in Q1 2024, including PLN 2.7 million from the sale of products and services. The most significant impact on revenue came from delivering four Delta Printing System devices, twice as many as in the same period last year. The first quarter of 2024 was marked by intensified investment activities related to the implementation of the 2023-2026 Strategy and the scaling process of XTPL’s business, aiming to reach PLN 100 million in commercial sales by the end of 2026. The company significantly increased its workforce to 91 employees by the end of March, achieving the target and optimal level for the Strategy’s implementation. XTPL also expanded production capacities in each of its three developing business lines, and the DPS device construction process was halved, preparing the company for a significant revenue increase within the Strategy’s horizon and the seasonally best second half of the year. XTPL is also strengthening its presence in the US market with plans to open a sales and demonstration center in the coming months.
“Six months have passed since XTPL adopted its ambitious development vision described in the 2023-2026 Strategy. We have chosen a rapid scaling of our organization to achieve PLN 100 million in commercial sales by the end of 2026 and to implement the first XTPL technology deployments on industrial lines of global advanced electronics manufacturers. The company’s activities in Q1 focused on intensified investments to realize this development vision and appropriately prepare the company for the anticipated significant revenue growth within the Strategy’s horizon across all three XTPL business lines. We are now very well prepared for this,” commented Filip Granek, CEO of XTPL S.A.
“In the first quarter, we made an important decision to strengthen our presence in the US market. We hired a Sales Director for North America with international experience in additive manufacturing and printed electronics and began preparations to open our first sales and demonstration center in Boston in the second half of 2024. These activities were accompanied by another success in the form of a DPS device order from an industrial client in the US, and in the coming weeks, we plan to participate in several key industry conferences in this market, including The Electronics Components and Technology Conference (ECTC) in Colorado and TechBlick The Future of Electronics Reshaped in Massachusetts,” added Filip Granek.
In Q1 2024, XTPL generated total revenues of PLN 2.9 million, including PLN 2.7 million 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 remaining value consists of grants, with the company currently participating in one international project under the Horizon Europe program and preparing to launch a second project around September this year. EBITDA for Q1 2024 was PLN -5.1 million, a consequence of the company’s intensified investment activities related to the Strategy’s implementation and the plan aimed at scaling XTPL’s business. The cash balance amounted to PLN 19.4 million as of March 31, 2024, due to investments in key areas: sales activities, production capacities, and R&D.
“The increase in costs and expenditures incurred in Q1 2024 is primarily a consequence of investments in scaling the company but also relates to a change in the sales mix – we delivered twice as many DPS devices to clients as last year. Other factors include the historically highest recruitment rate and increase in employment from 53 to 91 people by the end of March 2024, including B2B settlements. Marketing and sales activities significantly increased, including the implementation of a new version of the website and its positioning, as well as participation in international trade fairs and industry conferences. In the first months, we also incurred costs for building a DPS device for marketing purposes (demonstration unit) and implemented an ERP system to manage processes across the organization, while also upgrading laboratory equipment with new tools. The visible increase in inventory results from the decision to secure key components for building DPS devices and industrial modules, preparing us well for the seasonally best period, the second half of the year. We increased production capacities and halved the DPS construction process, allowing us to deliver more devices in the coming quarters than was possible a few months ago,” said Jacek Olszański, CFO of XTPL.
“The key processes remain related to industrial implementations, where we have about 20 projects underway, of which 9 are at least at the second stage, and 4 are at a very advanced fourth stage, involving the construction of a large prototype industrial device with our module inside. Such a device is already with one of our end customers, a leading FPD manufacturer from South Korea, and others are in the process of construction or module delivery. It is worth noting that the first full implementation will constitute the final confirmation of our technology’s readiness to be included in the global value chain related to the production of advanced electronics by the world’s largest manufacturers,” added Jacek Olszański.
XTPL’s business model is based on three complementary business lines: modules for industrial implementations on the production lines of global electronics manufacturers, prototyping devices Delta Printing System (DPS), and High Performance Materials (HPM, nanoinks). The company has 9 projects aimed at industrial implementation of its technology, at least in the second stage of this process, with the most advanced being 4 projects in strategic areas for the company: semiconductors and displays. The total potential of these 9 industrial projects, assuming positive validation, is estimated by the company at around PLN 400 million in average annual revenues. End customers are global entities responsible for the production of next-generation electronics, including a leading manufacturer of machines for the modern display industry from China, a top semiconductor manufacturer from Taiwan, one of the largest FPD manufacturers in the world from South Korea, and a Nasdaq 100-listed leading industrial machinery manufacturer from the USA.
