Industrial scale additive manufacturing company Titomic has begun producing demonstration parts to satisfy its breakthrough sale of two massive production machines valued at $25.5 million.
Titomic told investors that it had completed the technical research and development phase for its sale to Composite Technology, an Australian R&D and commercialisation division of a global defence product manufacturer.
The company’s Titomic kinetic fusion (TKF) production process is now being used to produce and certify demonstrator defence products, namely NATO replacement parts, destined for the global defence market.
“Once the demonstrator parts are certified, the delivery schedule for the custom TKF Systems for Composite Technology can be finalised with a deposit anticipated to be received in early 2021, with revenues recognised in accordance with agreed delivery and commissioning milestones.”
The deal is the largest made by an Australian additive manufacturing company, and has been a highlight of a year of progress in Australian additive manufacturing.
During the year Titomic has remained fully operational during the pandemic, though it has experienced a major turnover of staff and board.
Founding chairman Philip Vafiadis left and was replaced by Dr Andreas Schwer, while Dag W.R. Stromme and Humphrey Nolan joined the board.
Founder and managing director Jeff Lang kept the company on course while also seeking a new COO and CFO.
However revenues were delayed by the pandemic, with the company now expecting to book revenue of $4.5 million in 2020, with the balance to come in 2021.
In the latest quarter the company commissioned Deloitte to conduct a strategic review of the TKF process’ capabilities and opportunities.
“Titomic has implemented cost reductions during the quarter to mitigate the effect of delayed orders.
“Several of the initiatives will continue into the second quarter, aligning the cost base with the business environment.”
The company’s Melbourne production bureau has continued to operate during the year on eight projects for clients in the aerospace, defence and tooling sectors.
It is now focused on developing new quality systems to meet higher standards including NIST 800-171, AS27001 and AS9100D.
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