VIGO Photonics is looking to continue its development on the global photonics market and branch out into new areas, maintaining high margins and the revenue growth rate at the level of 20-30% annually. The manufacturer of the most advanced mid-infrared detectors and semiconductor materials has presented development plans for 2021-26.
The VIGO Photonics Management Board has outlined the most promising business opportunities on the photonics market, the use of which may allow the implementation of the growth strategy.
These are:
• Exploring the market of MCT (HgCdTe) detectors, including expansion (geographic, segmental) in market areas not covered by regulations, excluding the use of mercury and cadmium in detectors,
• Advances in the infrared detector technology and infrared modules made of materials based on compounds from groups III and V from the periodic table of elements, in line with the EU Restriction of Hazardous Substances (RoHS) directive,
• Advances in III-V semiconductor material epitaxy and the production of near-infrared sources (VCSEL lasers),
• Advances in infrared sources technology,
• The development of the optoelectronic systems technology and photonic integrated circuits for mid and short infrared,
• Advances in the infrared detector array technology.
The implementation of the new strategy is divided into two stages.
In the first stage, covering the years 2021-2023, the company intends to focus on the continuation of the initiated development projects, including the technology of photonic integrated circuits, detectors made of III-V materials, epitaxy of semiconductor materials, and technology of infrared sources. It is also important to develop the technological and technical base common to key pro-growth initiatives, due to investments in R&D and universal infrastructure. Another of the planned activities is carrying out e.g. based on the effects of R&D projects, the analysis of the market situation, selection of the most prospective and promising growth initiatives, and the preparation of an investment plan necessary for their implementation.
In the second stage, the company will focus on implementing the most promising growth initiatives. Furthermore, VIGO Photonics intends to continue its expansion into new geographic and product markets, including investing in the development of its own sales structures in key markets. The management board’s goal is to maintain the revenue growth rate at the level of 20-30% annually, as well as high profitability of core operating activities, including the gross margin on sales above 60% and the EBITDA margin above 40%. VIGO Photonics estimates the potential for growth in sales revenues and EBITDA at:
• 67 million PLN revenues, and PLN 29.5 million of EBITDA in 2021,
• 80 million PLN revenues, and PLN 33.5 million of EBITDA in 2022,
• 100 million PLN revenues, and PLN 40 million of EBITDA in 2023
In order to achieve strategic goals, in 2021-2023 the company plans to invest in research and development and technical infrastructure in the amount of 30-40 PLN million per year. The company intends to finance it from its own funds and public subsidies for research and development projects.