// // XTPL with the best quarter in its history - XTPL
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XTPL with the best quarter in its history

XTPL S.A., a global supplier of breakthrough nanoprinting solutions for the world’s electronics market, continues its strong growth initiated in 2022. The third quarter has turned out to be a record period in the history of the Company, as it has achieved PLN 3.7 million in revenues from the sale of products and services – 52x more than a year ago and +80% compared to the previous quarter.

The Company’s turnover was again driven by increased revenues from the sale of products and services, which cumulatively after the three quarters of 2022 already account for 78% of XTPL’s turnover, with a share of grants reduced to 22%, despite their year-on-year increase in absolute terms. In the third quarter, EBITDA was PLN 0.9 million, up PLN 2.7 million on the year-ago period. Operating cash flows reached PLN 0.9 million, growing by PLN 2.0 million year-on-year. For the first time in its history, XTPL generated net profit. In the third quarter, it stood at PLN 0.6 million, up PLN 2.5 million compared to the same period last year.

Successful commercialization of the Company’s innovative solutions based on its proprietary technology has resulted in XTPL posting robust sales growth and pronounced increases at all key levels of the income statement in 2022. In the third quarter, a growth has been reported in each of XTPL’s three business lines.

“We are pleased with the significant increases in revenues from the sales of products and services, which we have been reporting regularly since the beginning of the year. We know that the current performance is the result of several years of effort and the development of innovative technological solutions that are widely used in many areas important for the market, such as displays, advanced integrated circuits and PCBs. We feel more comfortable as we realize that our activity is no longer typical research and development, where the Company’s financial situation depended on grants and investor funds. Currently, we have a comfortable cash position of PLN 3.3 million and we are nearing the goal of balancing our total cash flows before the end of this year. We have achieved a difficult transformation in a demanding market becoming an entity that is starting to successfully commercialize its developed technologies and we can boast growth in all our three business lines” – says Filip Granek, CEO of XTPL.

In the third quarter of 2022, XTPL generated PLN 3.7 million in revenues from the sale of products and services, which translated into a growth rate of +80% q/q and as much as 52 times the revenues achieved in the same period last year. EBITDA stands at PLN 0.9 million compared to PLN -1.8 million a year earlier. The positive results are also reflected in our operating cash flows, which in the third quarter of this year came in at PLN 0.9 million compared to PLN -1.1 million in the year-ago period. For the first time in its history, the Company reported net profit: PLN 0.6 million compared to a loss of PLN -1.9 million in the third quarter of the previous year. XTPL maintains a safe and comfortable level of cash: PLN 3.3 million at the end of September, compared to PLN 3.5 million at the end of June this year. Cumulatively, after the three quarters of 2022, total revenues were PLN 8.5 million, including PLN 6.6 million in revenues from the sale of products and services, which is a 31-fold increase compared to the same period last year. EBITDA was PLN -1.3 million compared to PLN -6.1 million in the year-ago period. Operating cash flows were positive at PLN 1.1 million vs PLN -3.2 million in the previous year. Net result was PLN -2.1 million, compared to net loss of PLN -6.5 million after the three quarters of 2021. The total value of grants obtained on a year-to-date basis was PLN 3.0 million, including PLN 1.9 million recognized in the Company’s balance sheet as advances and grants to assets.

“The steady development of XTPL is reflected in its financial results, which were record-breaking in the third quarter of 2022. We achieved PLN 3.7 million in revenues from the sale of products and services, which is an increase of 80% quarter-on-quarter and up PLN 3.6 million year on year. After the three quarters, revenues from the sale of products and services represented a significant 78% of XTPL’s turnover, despite an increase in the value of grants in absolute terms. We are on track to meet our financial goal for 2022, which is to balance our total cash flow. In the third quarter this year, it stood at PLN -0.1 million. The successful commercialization of XTPL solutions in the form of implementation of contracts with industrial partners, regular orders for nanoinks and the recurring sales of Delta Printing System devices, including for the first time to an industrial client, a Nasdaq-listed US company, one of the Big Five tech giants, allowed us to generate net profit for the first time in history: PLN 0.6 million in the third quarter 2022. Our goal for the next year will be to further increase sales in all three business lines and to achieve profitability at the bottom-line level throughout the whole 12-month period” – says Jacek Olszański, CFO at XTPL.

XTPL’s business model is based on three complementary business lines with high potential to generate revenue streams. These are printing modules intended for industrial implementation on the production lines of global manufacturers of electronics, the Delta Printing System prototyping devices and conductive nanoinks.

In Q3 2022, the Company continued the parallel development of 9 projects with global partners for future implementations of XTPL technology on an industrial scale. In the reporting period, the second stage of the technological phase, implemented with Nasdaq-listed Israeli company Nano Dimension, was delivered and settled. The project concerns the area of metallic nanoparticles for the PCB market. Already in November this year, XTPL reported the delivery and acceptance of the next, third stage, which will have a positive impact on Q4 2022 results. Another significant progress in Q3 was the acceptance of XTPL’s technological solution by the Taiwanese partner and the decision to start building a prototype of a device which will include the Company’s printing module. As part of the final evaluation phase of the project, the device will be tested on the production line of the end customer – the world’s leading semiconductor manufacturer.

“Invariably, we are striving for the industrial implementation of XTPL technology on the production lines of global electronics manufacturers. Projects with industrial partners are a key business line for us in the long term as we are consistently taking those projects to subsequent stages. In the third quarter, we managed to achieve this with our partner from Taiwan, where after about 18 months of evaluation processes, the XTPL technology was tested, positively assessed and approved, which initiated the process of building a prototype device containing our printing module. The next phase of the tests will be to check the device on the actual production line of the end customer, which is the world’s leading semiconductor manufacturer. We expect this to happen next year. Such processes are labor-intensive, which is customary for the industry of innovative technological solutions intended for a mass-scale use. This is why we have at the evaluation stage 8 more projects with global entities. In this way, we are not dependent on the success of any single project” – Filip Granek adds.

Over the last 3 months, the Company signed a total of 3 orders for the sale and delivery of DPS prototyping devices. One of the buyers is a US entity, a Nasdaq-listed US company, one of the Big Five giants from the ICT (Information Communication Technologies) sector. This is the first industrial client and the first order from the United States. The Company’s device will be used, e.g. in for the development of virtual reality (VR) technologies and products. Another buyer of the device is IRIS Adlershof Institute from the prestigious Humboldt University in Berlin, which will use the technology of ultra-precise deposition of nanomaterials for the electronics industry in work on new sensor, photovoltaics and optoelectronics solutions. The third device was delivered to a Chinese research and development center from Beijing, which will use the XTPL technology in work on advanced integration of semiconductor elements in a new class of devices. The sale followed an order placed by Yi Xin (HK) Technology Co Ltd, based in China, the distributor of XTPL technological solutions.

Conductive nanoinks are the third, last business line of XTPL. In the third quarter, the Company entered into 11 sales and product delivery contracts, which is a record result, equaling the number of sales contracts from the entire first half of 2022. Nanoink development, conducted as part of R&D activities and based on new expectations of the Company’s current and prospective clients, allows XTPL to successfully compete with global players.

Building the Company’s value and technological solutions is also supported by properly developed and implemented policy of industrial and intellectual property protection. Ever since its establishment, XTPL has been consciously creating its patent cloud. At present, the Company has 4 patents granted and 23 pending applications processes.

In 2020, the value of the printed electronics market was USD 41.2 billion (+11.0% YoY), while in 2025 it is forecast to grow to USD 63.3 billion (source: IDTechEx). This means an increase in the market value at a CAGR of 9.0% in 2020–2025. The market of electronic prototyping devices (the category that includes the DPS prototyping devices) is to see CAGR of 31% in the years 2021–2031 (source: Transparency Market Research). Global annual sales of systems for R&D, rapid prototyping and small-lot production in the area of the broadly understood printed electronics sector amount to approx. 250–500 devices per annum, at a price of approx. EUR 50–500 thousand per device.

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