Welding technology company K-TIG Limited (ASX: KTG) has posted a record $409,000 in revenue and $458,000 in cash receipts for the three months to December 2020, with continued momentum expected over the coming quarter.
The company’s results were boosted by a planned expansion into the US, facilitated this month by the signing of a five-year distribution agreement with Texas-based automatic welding and robotics welding provider Key Plant Automation.
Under the terms of that agreement, the two companies will establish a demonstration facility at Key Plant’s head office in Houston to showcase K-TIG’s disruptive welding technology.
During the quarter, Key Plant made its first sale of K-TIG equipment into the US nuclear decommissioning sector, demonstrating the efficiencies of K-TIG’s onsite sales force partnering with Key Plant’s turnkey solution.
K-TIG managing director Adrian Smith was pleased with the December results.
“The momentum continued with strong sales achieved during the period,” he said.
“We are seeing the benefits start to flow from the recent establishment of our US operations and we are confident of additional sales over coming quarters.”
Defence sector sale
K-TIG achieved its first defence sector revenue during the quarter, with sales of its technology to produce radiographically defect-free welds in high hardness armoured (HHA) steel applications.
The company said it would continue to work with Australian and global defence industry partners to expand its offerings and increase market opportunities.
The company remains focused on accelerating its “strategic pillars” growth strategy based on customer acceleration and expansion in the US; entry into the UK’s nuclear industry; planned partnerships; and continued research in the defence and space industries.
Over the current quarter, K-TIG expects to build on these pillars to deliver revenues of up to $600,000 over the next quarter.
Additionally, the company aims to finalise new distribution agreements in the US; make technical demonstration and proof-of-concept in-roads to the domestic and domestic defence markets; and advance key global partnerships.
K-TIG markets itself as a transformative, industry-disrupting welding technology business which “seeks to change the economics of fabrication”.
The company listed on the ASX in late 2019 with a high-speed precision technology that can weld up to 100 times faster than traditional TIG (tungsten inert gas) welding.
It claims to achieve full penetration in a single pass on materials of up to 16 millimetres thickness, and typically operates at twice the speed of plasma welding.
K-TIG’s technique works across a range of applications and is believed to be well-suited to corrosion-resistant materials such as stainless steel, and nickel and titanium alloys.
Originally developed by the CSIRO, K-TIG now owns all rights, title and interest in and to the proprietary and patented welding technology.