• 2023 revenues: PLN 75.4 million (up 11.1% year-on-year), VIGO's revenue grew on the back of results in key areas: the industrial and military segments
  • In 2024, the company's focus will be on pro-development projects: developing sales in traditional business with particular emphasis on the US market, development of matrix technologies, HyperPIC

VIGO Photonics S.A. (WSE: VGO), a global manufacturer of the most advanced mid-infrared photonic detectors and detection modules as well as semiconductor materials, has released its
fourth quarter and 2023 results.

In the fourth quarter of 2023, VIGO Photonics generated PLN 21.8 million in consolidated revenue (up 7.3% year-on-year), a level comparable to the record-breaking fourth quarter of 2021 (PLN 22.2 million).

In 2023, the company's consolidated revenues totaled PLN 75.4 million (up 11.1% year-on-year), with adjusted EBITDA at PLN 20.0 million (up 33.8% year-on-year) and adjusted net profit at 11.2 PLN million (up 47.1% year-on-year). The 2023 consolidated gross profit margin stood at about 49%.

2024 revenue structure

In 2023, VIGO recorded year-on-year sales increases in the industrial, military and semiconductor materials segments. Sales in the transport segment were at a comparable level year-on-year, while the science and medicine segment declined.

In 2023, the industrial segment, which accounts for the largest share of VIGO sales, saw a rise in revenue by about 11% year-on-year to PLN 44.7 million, primarily due to robust US sales (gas analysis detectors, including methane analysis detectors), Europe (the semiconductor industry) and Asia
(measuring devices).

Revenue in the military segment was at PLN 11.9 million, up 47% year-on-year, which was mostly due to higher sales related to the Polish army.

In the transport segment, revenue amounted to PLN 7.9 million (up 1% year-on-year) due to orders from the Asian market, mostly China. The science and medicine segment witnessed a 34% decline in sales to PLN 4.7 million, while the semiconductor materials segment saw an uptick by nearly 50% to PLN 6.1 million, which was in part due to orders for QCL structures and semiconductor energy storage facilities.

The semiconductor materials segment recorded an increase in sales of almost 50% year-on-year to PLN 6.1 million, including thanks to orders for QCL (Quantum Cascade Lasers) structures and semiconductor energy storage facilities.

In 2023, the military segment grew at a significant pace (up 47% year-on-year). The upward trend in this segment is related to countries stepping up defense spending, which has been observable in the segment's revenue for a number of successive quarters now.

Geographically, in 2023, revenues from the American market and the Polish market went up significantly (respectively, up 74% to PLN 11.7 million and up 38% year-on-year to PLN 5.8 million, the military segment). In the European market, currently VIGO's largest market in terms of sales, revenue
grew by 9% year-on-year, while the Asian market shrank by about 22% year-on-year.

Current order value

Orders and contracts at the end of the first quarter of 2024 stood at nearly PLN 38 million (including PLN 21.5 million in confirmed delivery orders, compared to PLN 17.6 million at the end of the first quarter of 2023 and an additional PLN 16.4 million in the outstanding contracts for 2023-2025). This amount excludes a deal with a PGZ group company made in August 2023.

2023 saw a number of events of key importance for the company's development. In June 2023, the European Commission informed us that up to EUR 102.9 million in public aid had been approved under the European IPCEI ME/CT mechanism and earmarked for our HyperPIC project which aims at creating a complete, generic technological platform integrating key elements of the value chain of integrated mid- infrared photonic integrated circuits. Then, in November, we successfully completed an issue of series F
shares, raising almost PLN 63 million to speed up development in key segments, including sales development in the traditional segment of detectors and detection modules (with particular emphasis on the development of US sales), the matrix project, and the HyperPIC project. The above are our priorities for 2024 and for the years to come, says Adam Piotrowski, President of the Management Board of VIGO Photonics.

Issue of series F shares

In November 2023, the Company completed an issue of 145,799 series F shares, raising almost PLN 63 million gross. The funds will go to fund development initiatives, including investments in the development of the company's own sales structures, with a particular focus on the US market, the development of technologies and efforts in the field of infrared detector matrix technology, as well as photonic integrated circuit (PIC) technology, including the first phase of the HyperPIC project classified as an IPCEI by the EC.

Prospects for the upcoming periods

  • Sales development in the US

Seeing a very large potential of the US military and industrial markets, VIGO is intensely growing its sales capabilities in the US.

Currently, the company operates a 4-strong operational team with expertise in the industry and military fields, who meet the requirements of classified information access and cybersecurity, and there are plans to increase the US headcount to seven. On top of this, VIGO plans to strengthen its links with the American scientific community and launch joint development projects to speed up the pace of developing new products for American clients, especially the arms industry.

  • Infrared detector matrices

The company is also pursuing a project related to the development of infrared detector matrix technology for civilian and military applications and launching its mass production. The project is proceeding as planned. VIGO plans to begin producing prototypes for military tests in the second half
of 2024, with mass production scheduled to start in 2025 and to gradually scale up in 2026.

In 2023, the company signed a letter of intent with PCO regarding the launching of infrared matrices for mass production and for use in Polish army combat vehicles. The project is currently in its R&D phase.

In February 2024, VIGO's project, HyperPIC: Photonic Integrated Circuits for Mid-Infrared Applications, was included in the list of projects selected for funding under a call announced by FENG (European Funds for a Modern Economy). The project will be implemented as part of the integrated European project IPCEI ME/CT (Important Projects of Common European Interest on Microelectronics and Communication Technologies). The company expects the final agreement with NCBiR to be signed
soon.

The implementation of the project will accelerate the development of photonic sensor technologies, enabling the market launch of a new class of integrated photonics circuits for sensor applications. This will make it possible to incorporate single chips with advanced sensory features into everyday objects (smartphones, wearables, household appliances, vehicles).

INDUSTRY EVENTS

  • In 2023, VIGO Photonics attended the following industry events:
  • SPIE Photonics West (USA), the world's largest photonics industry conference
  • Smart City Summit (Taiwan)
  • Space Industry Days (Poland)
  • SPIE Optics and Optoelectronic fair (Czech Republic)
  • Infrared Colloquium (Germany)
  • LASER World of Photonics (Germany), the largest industry conference in Europe
  • Webinar on III-V detectors, held jointly with Photonics Media
  • OPIE industry conference (Japan)
  • Photonics 21 Partnership Annual Meeting 2023 (Belgium)
  • International Day of Light (Poland)
  • SEMICON West (USA)
  • Korea-Poland Business Forum (Poland)
  • Poland-Taiwan Business Round Table (Poland)
  • MSPO International Defense Industry Exhibition (Poland)
  • SEMICON Taiwan (Taiwan)
  • DSEI (England)
  • EPIC Technology Meeting on Photonics in Defense (Poland)
  • RAPID Research and Application of Photonics in Defense (USA)
  • Webinar on infrared detectors for gas analysis, held jointly with the Laser Focus World organization
  • CIOE China International Optoelectronic Expo (China)
  • CEM Emission Monitoring (Spain)
  • TRAKO (Poland)
  • Poland-Switzerland Economic and Technological Forum (Switzerland)
  • EU Regional Conference: New Perspective, New Opportunities 2021-2027 (Poland)
  • Photonics Days Berlin (Germany)
  • EPIC Technology Meeting for Quantum Technology (Germany)
  • Seoul ADEX (Korea)
  • EPIC New Product Release
  • Optoelectronics Conference (Poland)
  • SEMICON Europe (Germany
  • IPC IEEE Photonics Society Conference (USA)
  • Intelligent Rail Summit (Poland)
  • IR Fair (Japan)
  • Combat Aeroterrestre 2035 (France)

Contact for media and individual investors

Piotr Piotrowski, cc group

piotr.piotrowski@ccgroup.pl, +48,697,613,010

Contact for institutional investors

Małgorzata Młynarska, cc group

malgorzata.mlynarska@ccgroup.pl, +48,697,613,709

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Vigo Photonics SA published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2024 10:37:31 UTC.