Revenue for Hybrid Software dropped slightly in 2022 compared to the previous year with supply chain issues getting the blame.
Revenue came in at €46.69 million (€48.56 million) with Meteor Inkjet being hit in particular by the difficulty in sourcing a specialised chip. Consequently after what CEO Mike Rottenborn calls a “stellar year” in 2021, 2022 revenues fell from €13.98 million to €8.66 million. A rapid redesign of the affected circuit board meant a more easily obtainable chip could be used and has redressed the problem. This was a £4 million shortfall against projects he says adding that 2023 has started very strongly for Meteor.
Elsewhere 2022 was a year of transition for the business. It brought the Hybrid Software business, Global Graphics, Meteor, ColourLogic and Xitron into one group, acquired the iC3D and Quadraxis operations and sold a bunch of IPv4 addresses which netted £3.3 million which more than covered the acquisition of iC3D.
The strategy is to deliver products that call on the expertise of more than one division and which help the transition to digital printing in ceramics, packaging, textiles and 3D printing. “We occupy a unique position in markets that are predicted to grow significantly,” the company says in its report and accounts for 2022.
The SmartDFE is a manifestation of this approach and is highlighted by Rottenborn in the CEO’s review section of the report. It integrates drive electronics, colour management, fast rasterisation and dot generation in a single package that will help developers in labels, flexible packaging and corrugated to produce solutions for highly automated production environments.
It received four patents during the year, one from Meteor was granted in the US and UK and relates to a way of detecting clogged nozzles and impending printhead failure. Another, granted after a contest from a rival in the US, was for its PrintFlat technology.
The company intends to monetise the patent portfolio it holds during this year and beyond.
Company chairman and major shareholder Guido Van der Scheuren says that the 2022 trading circumstances and expectations of an impending recession has meant cash conservation has been important, cutting some external expenditure and putting some acquisition activity on hold. “I predict a relatively shallow recession in most worldwide markets with a recovery starting in the second half of 2023,” he says.
Nevertheless Hybrid Software has increased its R&D spend to €13.5 million (€12.7 million) to ensure says Rottenborn that “Hybrid Software Group remains the technology leader and go-to company in each of our operating segments.
“There is no doubt that Hybrid Software is a stronger company as we enter 2023. We have a strong cash position, a leaner and more well organised R&D structure and successful products that are helping our customers every day, that our technology is best in class and that Hybrid Software is the only company that can deliver comprehensive software and electronics solutions for all digital inkjet applications.”
