The company recorded sales of more than £20m during the three months from 1 July while net cash stood at £18.8m as of 30 September, a £2.7m increase from 30 June 2012.

Xaar finance director Alex Bevis said the introduction of its 1001 GS12 printhead for ceramic tile production was a key factor to its strong performance during the quarter.

The 1001 GS12, launched in May, jets larger 12 to 84 picolitre drops than the company's established GS6 printhead and offers output speeds up to 100% faster than the older model.

The first OEM adopters of its GS12 demonstrated their printers in Italy last month with manufacturers such as Intesa-Sacmi, Kerajet, and TecnoFerrari all showcasing printers featuring Xaar technology.

Xaar has increased operating costs by investing 8% of its revenue into research and development but boosted printhead production capacity in the process.

"We’ve increased our annual production capacity for our GS12 1001 printhead from 5,000 to 45,000," said Bevis.

Bevis added that increased printhead productivity had enabled the manufacturer to offset volume price discounts it had offered to combat increased competition in the market.

Xaar said that gross margin in the third quarter was "slightly higher" than the margin achieved in the first half of the year while overall gross margin in the second half is expected to be "at least as strong" as the first six months.

Growth in sales and gross margin benefited operating profit during the third quarter but ongoing investment into R&D resulted in a "higher level" of operating costs.