Japan could prove major market for Quixant
Cambridge-based gaming technology company Quixant plc has posted interim results in line with management expectations with revenues and profits lower and is expecting a major boost for business in Japan following positive regulation changes.
The UK quoted company says it is on track to meet market consensus expectations for strong full year revenue and profit growth.
Quixant’s revenue has historically been second half-weighted and management expect this trend to be reflected in the full year 2018 results.
Quixant is a global provider of specialised computing platforms and monitors for gaming and slot machine application.
Group revenue in the six months to June 30 fell to $50.3 million from $56.9m year-on-year and pre-tax profit was down to $6.1m from $8.7m. The company’s cash reserves are also down to $2.5m from $4.4m at the end of December.
Robust growth in shipments of computer platforms in the first half of 2018 to a previously announced major global manufacturer was a first-half highlight.
A significant project currently in the design phase which will result in Quixant ultimately supplying the same customer with all of its jackpot controller requirements also boosts confidence for the months ahead.
CEO Jon Jayal (pictured) said: “I am very pleased with the performance of the group in the first six months of the year. The business is performing in line with management expectations and we are on track to achieve market expectations for the full year.
“The first six months of 2017 were unusually strong and reversed the second half weighting we have traditionally experienced. As previously indicated, this year we expect a return to a second half weighting.
“A robust group performance in July and August, alongside our record sales pipeline, supports our expectation of second half sales in line with market expectations.
“Looking forward, over recent months we have seen positive regulatory developments in a number of key gaming markets, particularly Japan. We believe these will result in significant market growth over the medium term that Quixant is well placed to exploit.
“The market across all our customers in gaming remains buoyant, and with a strengthened senior management team, the technical expertise of our staff, and a strong balance sheet, Quixant is in an excellent position to continue to develop new opportunities.”