Xaar PLC (LON:XAR) shares dropped in early trading Wednesday after it announced cost reductions as a result of disappointing trading in its legacy ceramics business for the first five months of the year.
The inkjet technology company said the reductions were to "better align capacity in the legacy business with the expected future demand" after trading had come in “below expectations”.
READ: Xaar posts drop in full year profit as margins of inkjet printheads fall
The company added that it was likely that its full-year revenue expectations for the ceramics market would not be achieved, although with the cost reductions implemented it expected full-year profits to be in-line with expectations.
The company added that it expects second-half revenue to have a "stronger weighting" on annual results, as it increased the proportion of revenue represented by sales of new products.
The announcement follows a fairly grim set of full-year results for Xaar in the last financial year, when it reported a decline in full-year profits which it blamed on lower margins caused by lower output from its Swedish manufacturing facility in the first half of 2016, competitive pricing pressures, and worse-than-expected production levels of new products in the second half of 2017.
Shares were down 14.9% at 233.5p.