PLN 11.73 million revenue from sales by VIGO System in Q1 2022
VIGO System S.A. (WSE: VGO), a global manufacturer of the most advanced mid-infrared photonic detectors, modules dedicated to these detectors and semiconductor materials, generated nearly PLN 11.73 million in sales revenue in Q1 2022, compared to PLN 14.58 million in the same period last year. The main influence on the results achieved in this period was the planned and previously announced commissioning of the new investment of technological facilities and clean room. Revenues from the detector modules segment amounted to PLN 11.19 million, while from semiconductor materials – over PLN 0.53 million. The highest sales increase of 53.1% YOY to PLN 8.33 million was generated by VIGO System in industrial applications. The Company’s revenue forecast for 2022 in the amount of PLN 80 million, published in the development strategy, is upheld.
The lower sales revenue of VIGO System by 19.6% compared to Q1 2021 was due to the commissioning of the expansion of the technological facilities under construction, including the clean room, and the related necessity to temporarily suspend some of the production processes, which had been planned and previously announced by the Company. The Company took precautions for this period and used materials produced for this purpose in Q4 2021. The Management Board of VIGO System upholds the achievement of the level of sales revenue for 2022 in the amount of PLN 80 million, as announced in the new development strategy.
– The results of the first quarter are very good despite the visible and anticipated effect of the temporary production suspension. We predict that this effect will no longer be visible on the levels of sales generated in subsequent quarters of the year and the 80 million PLN revenue target set for the end of 2022 still stands. We are already seeing an increase in orders compared to the same period last year. We intend to maintain this trend, which will be facilitated by the launch of small- and medium-scale production in the new clean room – says Adam Piotrowski, CEO of VIGO System S.A.
In the quarter which has just ended, industrial applications accounted for the highest share in the revenue structure: industrial 71.1%, transport 12.9%, scientific and medical 9.1%, military 2.3% and other 0.1%. The share of semiconductor materials was 4.5%.
Science and medicine; Other; Industry, Transportation, Military, Semiconductor materials
The highest sales increases were achieved by VIGO System in the following applications: industry (+53.1%) and science and medicine (+13.8%), where the volume of orders increased compared to the previous year. At the same time the volume of orders in the military application decreased significantly (-94.7%).
– In the first quarter of this year, we won over 30% more orders overall than in the same period last year. Due to the current completion of orders for customers in the military segment, these sales are lower YOY. We will return to the production related to orders for the military sector as early as Q2 2022, although according to previously reported information these orders are smaller than in the previous year. Our goal for the coming months is to consistently increase orders in all applications, especially in the industrial segment – says Łukasz Piekarski, Board Member for Finance of VIGO System S.A.
In 2021, VIGO System generated the highest financial results in its history: PLN 71.5 million in sales revenue (+33.8% YOY), PLN 29.1 million in adjusted EBITDA (+19.1% YOY) and PLN 24.3 million in adjusted (cleared of the impact of deferred income tax) net profit (+34.5% YOY) – with high margins maintained. Revenue growth in the past year was achieved as a result of increased sales of products and services in the detection modules segment (+30.5% YOY) and in the conductive materials segment (+125% YOY).
NEW OBJECTIVES IN THE NEW DEVELOPMENT STRATEGY
In 2021, VIGO presented a new, two-stage development strategy for 2021-2026, which singles out 6 development initiatives – technological areas aimed at strengthening the Company’s position as one of the most innovative and dynamically developing companies on the market. By 2023, the Company’s objective will be to continue the R&D projects initiated in the field of photonic technologies, integrated circuits, detectors made of III-V materials, epitaxy of semiconductor materials and infrared source technologies. The technological and technical base will be developed. The development strategy will allow the Company to maintain a 20-30% annual growth rate and is expected to generate revenues of approximately PLN 80 million in 2022 and PLN 100 million in 2023. EBITDA at this stage is expected to grow to approximately PLN 40 million in 2023. The second stage of the strategy will be implemented until 2026 inclusive and will consist in the implementation of selected development initiatives.
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VIGO System S.A. (WSE: VGO) is a global manufacturer of high-technology solutions – the most advanced mid-infrared photonic detectors, modules dedicated for them and semiconductor materials. Innovative devices have been recognised and used by numerous international customers from the industrial and transportation segments as well as the environmental protection, medical, defence and security sectors. The quality of VIGO System detectors was also confirmed during NASA missions on Mars (e.g. in Curiosity rover) as they detected traces of methane on this planet.
VIGO System successfully develops its operations in the field of semiconductor materials production. For this purpose, the Company has perfected and uses the epitaxy technique (deposition of layers of selected crystals on a crystalline substrate) with the use of elements from groups III-V of the periodic table. In its development strategy VIGO System intends to provide the global market with photonic integrated circuits (PIC) based on semiconductors produced in this way. These chips will find numerous applications in consumer electronics industry. The Company also aims to become a leader in the emerging European silicon chip market.
The Company’s sales revenue between 2016 and 2021 increased nearly 3x to PLN 71.5 million. EBITDA in 2020 amounted to PLN 26.5 million (+42.3% YOY). As part of the strategy for the period 2021-2023, the Company plans further growth in sales revenue: up to PLN 80 million in 2022 and PLN 100 million in 2023, as well as PLN 103 million of normalised EBITDA for the years 2021-2023.
VIGO System commenced its operations in 1987 and has been listed on the main market of the Warsaw Stock Exchange since 2014. VIGO System is based in Ożarów Mazowiecki and has subsidiaries in the United States and Taiwan. The company employs about 200 high-class specialists and scientists.
In December 2021, the Company began the process of rebranding and changing its name to VIGO Photonics.