XP Power - A testing year
XP entered FY20 with a strong order backlog, having managed the business through a number of issues in FY19. The COVID-19 virus represents a new challenge for the company – changes to the supply chain and the shift of some manufacturing to Vietnam should help to mitigate the risks. We have reduced our FY20 forecasts to reflect short-term supply chain issues. Longer term, it remains to be seen if the virus will have a more material impact on customer demand.XP Power is engaged in the design and manufacture of electronic power converters, which is required to convert the power output from the mains wall socket to the usable power that allows the equipment to function. Co. supplies these products to the healthcare, industrial and technology industries.
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