High-speed welding technology developer K-TIG (ASX: KTG) has revealed a significant increase in revenue for the December quarter to date, showing it is making real progress in the execution of its growth strategy.
In an operational update to the market, the company has reported seeing significant traction across its four strategic pillars – customer acceleration expansion in the United States market, the United Kingdom nuclear industry, planned partnerships, and continued research in the defence and space industries.
As well as a “significant improvement” in the project pipeline size and quality, the welding specialist said it anticipates sales exceeding $400,000 for the quarter.
K-TIG managing director Adrian Smith described the current quarter as “pleasing” given the strong sales achieved to date.
“The recent establishment of the USA operations is driving increasing interest in K-TIG technology and customer enquiries, which we are confident will result in additional sales over coming months,” he added.
According to K-TIG, the US expansion is tracking well with sales already achieved through a memorandum of understanding with automatic welding and robotics welding provider Key Plant Automation as well as the on-the-ground sales force.
“This includes the company’s first sale into the US nuclear decommissioning sector, which demonstrates the strength of the on-the-ground sales force partnering with Key Plant’s turnkey solution,” it said.
Both sales channels are expected to scale up over the coming quarters with the establishment of the Key Plant demonstration site, on-the-ground spare parts and technical support, as well as the “ever-expanding pipeline” being driven by K-TIG’s US-based employees.
High hardness milestone
K-TIG recently proved its technology can automatically weld high hardness armoured steel, a significant step towards being utilised by domestic and global defence fabricators.
It also achieved its first defence sector revenue through a new partnership with Axiom Precision Manufacturing and Bisalloy Steel Group (ASX: BIS).
“The company continues to work with Australian and global defence industry participants to further increase this market opportunity and expects to make further announcements in this area,” K-TIG stated in today’s market update.
Research and development
K-TIG also announced the appointment of Zhenyu Fei as the manager of welding research and development, who is expected to lead the research into new and innovative solutions for the defence and civil welding markets.
“This will expand the company’s offering and allow customers to use the technology on more materials with differing specifications,” the company said.
Disruptive welding technology
Debuting on the ASX late last year, K-TIG is a transformative, industry disrupting welding technology company that “seeks to change the economics of fabrication”.
It claims its technology can weld what would take a conventional TIG weld about six hours to do, in three minutes.
The technology has been field tested and exported to customers in 20 countries and is being utilised by some of the world’s largest fabricators.