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VIGO revenue estimates for Q4 2024

Summary of VIGO Photonics financial results for Q4 2024

VIGO Photonics S.A. (WSE: VGO), a global technological manufacturer of the most advanced photonic detectors and mid-infrared detection modules, as well as semiconductor materials, achieved consolidated revenues of PLN 24.1 million in Q4 2024 (+10% year-on-year). The revenue level achieved in Q4 2024 is a record quarterly revenue in the company's history.

Sales of detectors and detection modules in Q4 2024 totaled PLN 21.2 million (+6% year-on-year), while sales of semiconductor materials amounted to PLN 2.9 million (+64% year-on-year).

In total, VIGO's revenues for 2024 reached PLN 78.3 million (+4% year-on-year), with sales of detectors and detection modules amounting to PLN 69.6 million (+0.5% year-on-year), and sales of semiconductor materials reaching PLN 8.7 million (+42% year-on-year).

Once again, the military segment recorded a significant year-on-year revenue increase. The segment's revenue in Q4 2024 amounted to PLN 6.9 million, which is more than 89% higher compared to Q4 2023. In total, the military segment generated PLN 23.2 million in 2024, representing an increase of over 78% compared to 2023. In 2024, the military segment accounted for approximately 30% of VIGO's total revenues.

The industrial segment recorded a year-on-year sales decline of approximately 14% in Q4 2024, reaching PLN 11.5 million. This result reflects trends observed over the past few quarters, including lower demand for detectors used in the semiconductor industry and weaker economic conditions in industrial markets across Europe. In total, the industrial segment's revenue for 2024 amounted to PLN 34 million (-11% year-on-year), accounting for approximately 43% of VIGO's total revenues.

Sales in the semiconductor materials segment amounted to PLN 2.9 million in Q4 2024 (+64% year-on-year) and PLN 8.7 million for the entire 2024 (+42% year-on-year). This segment's revenue accounted for approximately 11% of VIGO's total revenue.

The total value of orders and contracts at the end of 2024 amounted to PLN 95.9 million (including PLN 84.6 million in confirmed delivery orders, compared to PLN 80.9 million at the end of the same period last year, and an additional PLN 11.3 million in other contracts to be executed between 2023 and 2025). This amount does not include the contract with an entity from the PGZ group signed in August 2023.

The revenue structure by application in 2024 was as follows: industrial applications accounted for 43.5%, military applications for 30%, semiconductor materials for 11%, transportation applications for 9.5%, and science and medicine for 6%.

Sales in 2023 and 2024 by Application

Bar chart titled "Sales in 2023 and 2024 by Application" shows sales in thousand PLN for Science & Medicine, Other, Industry, Transport, Military, and Semiconductor Materials. Industry has the highest sales with 42901 in 2023 and 34026 in 2024.

We are pleased with the record revenue achieved in Q4. The trend of increasing revenue from the military segment is intensifying, which is evident in the dynamics of this segment seen both in the last quarter and throughout the year. Sales in the military segment grew due to orders from regular customers in Poland and Europe, including Safran Aerospace, PGZ, and other European contractors. On the other hand, the industrial segment is still under pressure from weaker market conditions in European markets and lower demand for detectors in the semiconductor industry. However, sales are slowly recovering. It is worth noting that in Q4 of last year, we signed our first "volume" order for low-cost detection modules for a Chinese customer, which will also positively impact the segment's revenue in the coming quarters - says Adam Piotrowski, CEO of VIGO Photonics.

We are also focusing on other pillars of our strategy. In the HyperPic project, we obtained conditional financing from the EIB - this agreement is one of the options securing the financing of this project. However, the decision to release the funds has not been made yet - it will be dictated by the interests of the Company and its shareholders and will depend on external economic conditions - says Adam Piotrowski.

In Q4 of last year, VIGO secured its first serial order for low-cost detection modules for a customer in China. The order is for a volume of over 10,000 units, with the potential for several-fold increases in the coming years. The order covers detectors used for detecting carbon monoxide in the mining industry.

I would like to highlight the fact that in 2024, the growing revenue from the military segment offset the effect of weaker sales in the industrial segment. With the expected continued growth in military sales, combined with the anticipated recovery in industrial segment sales, we are optimistic about the revenue outlook for 2025 – we expect year-on-year growth in each segment - adds Adam Piotrowski.

It is also worth mentioning that sales in the semiconductor materials segment are picking up pace. The total revenue from this segment last year amounted to nearly 9 million PLN, accounting for 11% of VIGO's total revenue, which is already a noticeable level. The segment's revenue is growing dynamically due to orders for QCL structures (Quantum Cascade Lasers), structures for the production of semiconductor energy storage, and for the production of edge-emitting lasers. We expect the revenue from this segment to continue growing in the current year – summarizes Adam Piotrowski.

 

  • Funding for the project "Integrated Photonics Circuits for Free-Space Optical Communication Systems (FSOC)"

In November 2024, the company announced that the project "Integrated Photonics Circuits for Free-Space Optical Communication Systems (FSOC)" had been placed on the list of projects selected for funding under the Priority "Support for Entrepreneurs" within the European Funds for the Modern Economy 2021-2027 program. The project will be carried out by a scientific-industrial consortium, led by VIGO Photonics. The consortium partners include the Warsaw University of Technology (Institute of Microelectronics and Optoelectronics and the Center for Advanced Materials and Technologies CEZAMAT) and the Institute of Microelectronics and Photonics of the Łukasiewicz Research Network.

The total amount of eligible costs for the project is 25,000,187.50 PLN, with the funding amounting to 21,451,628.08 PLN, which represents 85.81% of the total eligible costs for support. VIGO's eligible costs amount to 12,500,187.50 PLN, with the funding for the company totaling 8,951,628.08 PLN. The duration of the project and funding is 36 months. The project implementation started on January 1, 2025.

 

  • Agreement for the supply of thermoelectric coolers

On December 11, 2024, VIGO entered into a framework agreement with a limited liability company registered in Poland for the supply of thermoelectric coolers. Under the agreement, VIGO committed to placing orders with a minimum annual value of 1,000,000 EUR gross, with the first year considered for placing orders being 2025. The commitment to place minimum orders will remain in effect until the end of 2030.

The agreement for the supply of thermoelectric coolers is significant due to ensuring long-term security of supply for critical electronic components for VIGO through supplier diversification and the relocation of cooler production to Poland.

 

Outlook for the coming periods

  • Sales growth in the United States

The company is actively expanding its sales forces in the United States, identifying a significant potential in both the military and industrial markets. The company has met all the key formal requirements related to cooperation with clients from the U.S. military sector (ITAR Registered status, full CMMC certification), which enables formal and detailed discussions with contractors from the U.S. defense industry.

Currently, the U.S. team consists of 6 people (with plans to expand to 7), possessing expertise in both the industrial and military sectors, and meeting the requirements for access to classified information and cybersecurity. The U.S. team at VIGO is currently intensifying its direct efforts aimed at acquiring new customers.

 

  • Infrared Focal Plane Array Project

At the end of June last year, VIGO announced the acquisition of a license granted by the Ministry of the Interior and Administration for conducting business related to the production of equipment dedicated to military needs. With this license, VIGO will be able to implement its development strategy to meet the growing demand in the defense sector in Poland, including the development of the infrared focal plane array project. The array project is being carried out as planned. In 2023, VIGO signed a letter of intent with PCO regarding the implementation of infrared arrays for mass production and use in vehicles and combat platforms of the Polish army, such as the New BWP Borsuk, KTO Rosomak, and the Pilica anti-aircraft missile-artillery system.

Currently, the project is in the R&D phase – the first series of arrays for military tests are being prepared, and the development of the LWIR array is ongoing. In parallel, work is underway on optimizing the investment in the new production line. In 2025, low-scale production is planned to begin, which will be gradually increased in the following years.

 

  • HyperPIC Project

In May 2024, the company signed an agreement with the National Centre for Research and Development for the funding of the HyperPIC project. The total value of eligible costs in the project amounts to 853,117,563.35 PLN, with the maximum public assistance amounting to 440,535,480.00 PLN.

In September of last year, VIGO entered into a conditional financing agreement with the European Investment Bank (EIB). Under the agreement, the EIB committed to providing the company with financing in the form of venture debt loans, with a maximum amount of up to 21,000,000 EUR (90,014,400 PLN), to support research and development activities within the HyperPIC project, as well as infrared (IR) detectors and modules.

The company has begun promotional activities related to the project, including delivering a presentation on HyperPIC and the potential applications of new integrated photonics circuits at the largest semiconductor industry trade show, SEMICON Taiwan.

 

  • Strategic Options

The company announced in September 2024 the initiation of a strategic options review process, aimed at analyzing and assessing possible directions for further development, including financing the development of photonic integrated circuits (PIC) technology, as well as infrared (IR) detectors and modules, and other company products. The company will consider potential strategic options, which may include attracting a financial or strategic investor or executing another transaction that could result in a change in the company’s ownership structure.

 

INDUSTRY EVENTS

Key selected events scheduled for 2025:

o SPIE Photonics West (USA, January)

o Infrared Colloquium (Germany, March)

o SPIE Defense + Commercial Sensing (USA, April)

o Laser World of Photonics (Germany, June)

o China International Optoelectronic Exposition (China, September)

o SEMICON Taiwan (Taiwan, September)

o International Defense Industry Exhibition (Poland, September)

o ADEX (Seoul, South Korea, October)

 

Contact for media and individual investors:

Piotr Piotrowski, cc group

piotr.piotrowski@ccgroup.pl, +48 697 613 010

 

VIGO Photonics S.A. (WSE: VGO) is a global manufacturer of high-tech solutions - the most advanced mid-infrared photonic detectors, dedicated modules and semiconductor materials. Innovative devices have been recognized and used by numerous international customers from the industrial and transport sectors, environmental protection, medicine, defense and security. The quality of VIGO Photonics detectors was also confirmed during NASA's mission to Mars (including in the Curiosity rover) and their detection of traces of methane on this planet.

VIGO Photonics is successfully developing its activities in the field of semiconductor materials production. For this purpose, the Company has improved and uses the epitaxy technique (deposition of layers of selected crystals on a crystal substrate) using elements from groups III-V of the periodic table. In its development strategy, VIGO Photonics intends to supply the global market with photonic integrated circuits PIC (Photonic Integrated Circuits) based on semiconductors produced in this way. These systems will find numerous applications in the consumer electronics industry. The Company's goal is also to achieve a leading position in the emerging European silicon chip market.

VIGO Photonics (formerly VIGO Photonics) began its operations in 1987, and since 2014 has been listed on the main market of the Warsaw Stock Exchange. VIGO Photonics is headquartered in Ożarów Mazowiecki and has a subsidiary in the United States. The company employs approximately 200 high-class specialists and scientists.

In August 2022, the Company changed its name to VIGO Photonics, previously known as VIGO Photonics.

 

More information:

vigo.com.pl

linkedin.com/company/vigo-photonics