The Cambridge-based group reported that trading was in-line with expectations for the period from 1 January 2009 to 31 March 2009, traditionally Xaar's quietest months.

Gross cash at 31 March 2009 was £12.4m, compared with £11.6m at 31 December 2008, while total debt at 31 March 2009 was £600,000, the same as the previous quarter.

In the first quarter, Xaar launched two new second generation Platform 1 products, the Xaar Proton and the Electron.

The former was launched at the Sign China show, and, according to the manufacturer, sales of the Proton head in China are ahead of expectations. The Electron printhead is expected to launch at the Shanghai Ad show in early July.

Last month, Xaar announced it planned to create 100 UK jobs by relocating the operation of its Swedish manufacturing plant to Huntingdon. The two-year process will help the group substantially cut its cost base.

Elsewhere, the manufacturer said that while OEMs were launching printers that used Xaar's Platform 3 (P3) technology, but sales volumes remained slow.

Xaar chief executive Ian Dinwoodie, said a drop in capital investments had caused the adoption rate of printers using Platform 3 products to slow, but he added that going forward the group is focused on utilising its new Electron and Proton technology to help regain market share in Asia.