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UK company Xaar plc has reported first half 2009 earnings that showed the company had returned to profitability after losses in the second half of 2008.

Chairman Phil Lawler said: "Whilst the Board is somewhat encouraged by trading volumes in the period, the continuing lack of visibility and uncertainty in the economic environment means that caution must be maintained when looking forward."

The company said in a statement that following difficult trading in 2008, it was essential, in the first half of 2009, to accelerate the development of new products to re-establish Xaar's market leadership in China, still its biggest market.

The first new product launched was the Proton, followed by the Electron (formally launched in early July 2009).

A modified launch strategy was used to develop a sharper competitive edge. Focus was placed on a small number of leading original equipment manufacturers as launch partners, rather than making the new products available to the market as a whole.

Proton has exceeded Xaar's expectations in terms of initial sales and been instrumental in helping it to win back market share and regain its market leadership in China.

Xaar Plc
http://www.xaar.co.uk/

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