Xeikon has blamed its poor results for the year 2000 on exchange rate fluctuations and a 50% fall in its sales to Xerox.


The Belgian group made a net loss of 16.9m ($24.6m) compared to a net income of 10.3m last year. Revenues also fell 14% to 119.3m. Xeikons share price fell by more than 25% on the news, and the stock was trading at a five-year low of 2.97 as PrintWeek went to press.


Xeikon president and chief executive Alfons Buts said: "Lower sales to OEMs had a substantial negative effect." Sales to Xerox fell from 29% of total revenues to 14%.


The 16% appreciation of the dollar, the companys reporting currency, against the euro, its functional currency, also hit results.


"We experienced a significantly lower than planned number of shipments of our new CSP system, as well as no growth in our black-and-white business," said Buts.


"Our costs increased due to the Agfa DPS integration. This acquisition has not yet translated into additional revenues."


In the forthcoming year Xeikon plans to develop its strategic relationships with MAN Roland and IBM.


Xeikon senior vice president of marketing and corporate planning Herman Remmerie said the firm did not anticipate substantial shipments to Xerox in 2001.


"Of course well still ship consumables and toner. Xerox was an important customer for us, but that isnt the case anymore," he added. Remmerie said that Xeikon expected to be back into the black by the second half of the year.


"The first thing we need to do is build revenue, and we can do that through our relationships with MAN and IBM as well as Xeikon-branded products.


"Revenue takes time to get results, but well implement measures to our gross margins and operating expenditure to get there."


Story by John Davies