Disappointing sales in the colour sector have led to a near 25-fold rise in Xeikons second-quarter losses.


It produced a net loss of 7.3m ($10.4m) on revenue down 29% to 24.3m.
Executive chairman Gino Despeghel branded the results a substantial disappointment, particularly those of North American colour systems.
Sales of colour equipment were down 57% to 6m. OEM sales were down 70% although Xeikon-branded sales remained stable.



It has also been hit hard by delays in shipping its cut-sheet CSP 320 D, which has resulted in customers getting other Xeikon machines as an interim measure.
Non-equipment revenues from spares, service and consumables were down 12% to 8.1m. More is being done under warranty, said Despeghel.


It expects to see an improvement in the third quarter as the CSP 320 D begins shipping and sales improve in North America around Print 01 in Chicago next month. Print 01 will also see the US launch of the Xeikon-based DICOpress range from MAN Roland.


Xeikon is undertaking a series of cost-cutting measures and refocusing its sales operation in an attempt to return to profitability. It claims the measures will include no job losses.
Despeghel, who joined the firms board in June, described his role as executive chairman as here to help, not replace [president and chief executive] Alfons Buts.


Xeikon has also launched a short-run digital newspaper print system, claimed to offer the largest digitally printed format and to match the look and feel of conventional newsprint.


Story by Barney Cox