We are very pleased with the progress of our development projects. Recently, we have achieved, among others: very good results for pre-production series of detectors cooled with liquid nitrogen - clearly better than the results of competitive products. In the near future, we will begin to agree with the customer the terms of serial deliveries of new products - says Adam Piotrowski, President of the Management Board of VIGO Photonics.

Good prospects for the military segment

For several quarters, we have been reporting clearly growing revenues from our military segment. In the first half of 2023, the total revenues of this segment amounted to over PLN 6 million (including PLN 3 million in Poland). This is the result of the geopolitical situation and significantly increasing spendingon security and defense in the USA and Europe, including Poland. We expect that these expenses, and therefore our sales in this segment, will continue to increase. We have very high hopes for this segment, and this applies both to the prospects related to the Polish army and foreign contracts, including the key American market. Sales are growing in Poland, but what is extremely important, further prospects are being realized - such as the contract for the supply of detectors used in automatic fire detection and extinguishing systems to the PGZ Group, or the letter of intent with PCO recently signed during the MSPO fair regarding the implementation of the infrared matrices we are developing for mass production and use in the Polish army - says Adam Piotrowski.

On August 29 this year VIGO signed an agreement with an entity from the PGZ Group to supply detectors worth a total of at least PLN 15.8 million (as at the date of signing the agreement) by the end of 2035. The implementation of the contract has already started. VIGO detectors covered by this contract are one of the most important components of the explosion suppression and fire extinguishing system developed by Polish entities in tanks, combat vehicles and other vehicles for both military and civilian purposes. The actual revenues from the implementation of this contract may be much higher due to the possibility of using the system in other types of military vehicles.

On September 7 this year During the International Defense Industry Exhibition in Kielce, VIGO signed a letter of intent with PCO regarding cooperation aimed at developing innovative solutions tailored to the needs of the modern battlefield, in particular infrared matrices based on T2SL supernet technology (Type II Superlattice).

One of the elements of VIGO's strategy is the development of infrared detector array technology, which is used primarily in the military. Infrared detector arrays containing hundreds of thousands or millions of active pixels are used in thermal imaging cameras for military and space applications. VIGO matrices will be based on the latest technological solutions, including the so-called T2SL (Type II Superlattice) superlattices, which offer better quality and repeatability of the product, and also enable the detector to operate at higher temperatures.

Recently, we have obtained positive results from tests of array detector demonstrators. This is particularly important to us, because within two years we plan to launch serial production of this type of detectors, which will be used in the military industry, primarily in military vehicles equipped with thermal imaging cameras. Ultimately, we would like to become the main supplier of matrix detectors for the Polish military industry, as well as expand cooperation in VIGO's core business - detectors and detection modules - says Adam Piotrowski.

Contracts signed in H1 2023 and after the end of the reporting period

The total value of orders and contracts obtained by VIGO Photonics from the beginning of this year to the end of August amounted to over PLN 80 million (including PLN 44.7 million in confirmed delivery orders, compared to PLN 58.9 million at the end of the same period last year and additionally PLN 37.7 million in contracts obtained for 2023-2025). This amount does not include the contract with an entity from the PGZ group signed in August this year.

This year, we decided to change the method of contracting with key clients and with a number of them we managed to negotiate framework contracts for deliveries for the entire 2023, and with some even until 2025. These include contracts in the industrial segment, which we informed about in separate reports - i.e. renewed contracts with a German partner, or a new contract with Caterpillar. Additionally, we have concluded contracts with two German and Swiss entities for detectors for use in measuring devices, another German company for detectors used in semiconductor production devices, and with our Finnish client for detectors for devices monitoring the level of pollutant emissions. This year, we expect to sign contracts for the supply of liquid nitrogen-cooled detectors to our new American customers, says Łukasz Piekarski, member of the management board of VIGO Photonics.

In the first half of 2023, VIGO signed new contracts, including: in an emission monitoring application - FTIR spectroscopy (contract value EUR 1.62 million), in an industrial application - for measuring the thickness of paint coatings (value approximately EUR 0.5 million) and for a supplier of optoelectronic systems (value approximately EUR 0.2 million). EUR). Further contracts were signed in July, including: for devices producing the latest generation of semiconductors (contract value: EUR 2 million) and for spectroscopy (value: EUR 200,000).

On May 4 this year another framework agreement was concluded with a German contractor for the supply of detectors worth from EUR 2.9 to 3.5 million until the end of December 2023 (with the possibility of postponement until the end of March 2024). In turn, on July 31 this year VIGO signed a renewed framework agreement for the sale of detectors with a company from the Caterpillar Group worth EUR 3.67 million until May 30, 2025 (with the possibility of postponing it until the end of August 2025).

Project HyperPIC

On June 12 this year VIGO Photonics received information from the European Commission about the approval of public aid in the amount of up to EUR 102.9 million under the European IPCEI ME/CT mechanism for the implementation of the HyperPIC project, the main goal of which is to create a complete, generic technological platform integrating key elements of the value chain of integrated photonics systems (PIC) for the mid-infrared range (Mid-IR Photonic Integrated Circuits, MIRPICs).

Obtaining the EC decision approving financing for the HyperPIC project shows that VIGO is an innovative company that can cope with the current reality of the global economy. The demand for our products in various industries will grow, supported by global technological, geopolitical and ecological trends - emphasizes Adam Piotrowski.

The decision to grant the Company funding and the determination of the final amount of funding will be made as part of the competition procedure under the European Funds for a Modern Economy (FENG) program. Entities for which the European Commission has issued a positive decision allowing aid will be able to apply for funding. Currently, the Company is preparing an application for funding under the above-mentioned procedures - the deadline is October 17, 2023.

Funding for other projects

VIGO regularly obtains new funding to maintain a high pace of technology development. May 10 this year VIGO, the company's project called "Development of an innovative photonic system for monitoring water resources in Poland" was included on the list of projects to be co-financed under the first competition of the Government Hydrostrateg Program "Innovations for water management and inland navigation". The funding for VIGO will amount to PLN 9.4 million and concerns the project of a sensor for testing water quality.

Industry events

In 2023, VIGO Photonics participated in the following industry events: SPIE Photonics West (USA) - the largest photonics industry conference in the world, Smart City Summit (Taiwan), Space Industry Days (Poland), SPIE Optics and Optoelectronic fair (Czech Republic, April), Infrared Colloquium (Germany, May), LASER World of Photonics in Germany (June), IDEF (July, Turkey), MSPO Kielce (September) and Semicon Taiwan (September), CIOE (September, China). DSEI (September, UK), RAPID (September, USA).

Until the end of this year VIGO will also take part in the TRAKO fair (September, Poland), CEM - Emission Monitoring (September, Barcelona), ADEX (October, Korea), the Optoelectronics Conference (November, Poland), and Combat Aeroterrestre 2035 (November, France)

Contact for the media and individual investors:

Piotr Piotrowski, cc group

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

Contact for institutional investors:

Malgorzata Mlynarska, cc group

malgorzata.mlynarska@ccgroup.pl, +48 697 613 709

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Vigo Photonics SA published this content on 22 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 September 2023 11:51:05 UTC.