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voxeljet AG Reports Financial Results for the First Quarter Ended March 31, 2016

FRIEDBERG, Germany, May 12, 2016 (BUSINESS WIRE) -- voxeljet AG VJET, -5.39% (the “Company”, or “voxeljet”), a leading provider of high-speed, large-format 3D printers and on-demand parts services to industrial and commercial customers, today announced consolidated financial results for the first quarter ended March 31, 2016.

Highlights – First Quarter 2016

  • Total revenues decreased 12.9% to kEUR 4,870 from kEUR 5,589
  • Gross margin was 27.3% compared to 33.6%
  • Systems revenues decreased 1.2% to kEUR 2,783 from kEUR 2,817
  • Services revenues decreased 24.7% to kEUR 2,087 from kEUR 2,772
  • Establishment of our Indian subsidiary, located in the city of Pune, near Mumbai
  • Establishment of our Chinese subsidiary, located in Suzhou, near Shanghai
  • Reaffirm full year 2016 revenue guidance

Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented, “I am pleased with our first quarter results, where we successfully installed two printers with our new PDB process. In addition, the establishment of our new subsidiaries in India and China shows great progress. Demand for both our systems and on-demand printed parts remains robust.

Dr. Ederer continued, “We reaffirm our full year 2016 guidance of revenues between kEUR 28,000 and kEUR 30,000 for the Group.”

First Quarter 2016 Results

Revenues for the first quarter of 2016 decreased by 12.9% to kEUR 4,870 compared to kEUR 5,589 in the first quarter of 2015.

Revenues from our Systems segment, which focuses on the development, production and sale of 3D printers, decreased 1.2% to kEUR 2,783 in the first quarter of 2016 from kEUR 2,817 in last year’s first quarter. The Company delivered three new printers in the first quarter of 2016, compared to four printers (two new and two used) delivered in last year’s first quarter. Systems revenues also include all revenues from consumables, spare parts and maintenance. Systems revenues represented 57.1% of total revenues in the first quarter of 2016 compared to 50.4% in last year’s first quarter.

Revenues from our Services segment, which focuses on the printing of on-demand parts for our customers, decreased 24.7%, to kEUR 2,087 in the first quarter of 2016 from kEUR 2,772 for the same quarter last year. This was mainly due to lower revenue contribution from our subsidiary voxeljet UK Ltd. (“voxeljet UK”), which was successfully restructured in late 2015. The revenue contribution of voxeljet UK was kEUR 117 compared to kEUR 912 in last year’s first quarter. Moreover, revenue contribution from voxeljet AG for the first quarter of 2016 was lower than in the last year’s same period. This was partially offset by a higher revenue contribution from our subsidiary voxeljet America Inc. (“voxeljet America”).

Cost of sales was kEUR 3,539 for the first quarter of 2016 compared to kEUR 3,710 for the first quarter of 2015.

Gross profit was kEUR 1,331 in the first quarter of 2016 compared to kEUR 1,879 in the first quarter of 2015. This was due to lower gross profit contributions from voxeljet AG as well as voxeljet UK, whereas the gross profit contribution from voxeljet America improved significantly. Gross profit margin decreased to 27.3% in the first quarter of 2016 from 33.6% in the first quarter of 2016.

Gross profit for our Systems segment decreased to kEUR 693 in the first quarter of 2016 from kEUR 772 in the first quarter of 2015. The gross profit margin for this segment decreased to 24.9% in the first quarter of 2016 compared to 27.4% in the first quarter of 2015. The decrease resulted mainly from two of the three 3D printers sold in the first quarter of 2016 being equipped with new processes and products incorporating new processes typically contribute lower gross profit at the beginning of the product life cycle. Furthermore, higher headcount costs related to our growth strategy led to lower gross profit. As of March 31, 2016, 68 people were employed in the Systems segment, compared to 41 as of March 31, 2015.

Gross profit for our Services segment decreased to kEUR 638 in the first quarter of 2016 from kEUR 1,107 in the first quarter of 2015. The gross profit margin for this segment decreased to 30.6% in the first quarter of 2016 from 39.9% in the first quarter of 2015. This was mainly related to lower gross profit contributions from voxeljet AG, as well as voxeljet UK due to a lower utilization ratio. This was partially offset by higher gross profit and gross profit margin contributions from voxeljet America. Gross profit margin highly depends on the degree of capacity utilization. A ramp-up in Services revenues would lead to a stronger gross profit margin.

Selling expenses were kEUR 1,203 for the first quarter of 2016 compared to kEUR 1,416 in the first quarter of 2015. The decrease of kEUR 213 was the result of lower selling expenses for voxeljet UK. As part of the voxeljet UK restructuring, headcount of our sales force decreased from eight employees in the first quarter of 2015 to one employee in the current year’s same period.

Administrative expenses were kEUR 1,096 for the first quarter of 2016 compared to kEUR 1,619 in the first quarter of 2015. This decrease of kEUR 523 was the result of lower administrative expenses for voxeljet UK due to the restructuring. In addition, consulting fees decreased significantly due to a lower number of ongoing projects.

Research and development (“R&D”) expenses decreased to kEUR 1,307 in the first quarter of 2016 from kEUR 1,560. The decrease of kEUR 253 was mainly due to the restructuring ofvoxeljet UK, which resulted in the cancellation of research and development activities in UK, partially offset by higher research and development expenses for voxeljet AG due to an increase in headcount of 6 employees compared to the first quarter of 2015.

Other operating expenses in the first quarter of 2016 were kEUR 1,129 compared to kEUR 206 in the prior year period. This was mainly due to expenses from foreign currency transactions amounting to kEUR 759 (q1 2015:kEUR 100).

Other operating income was kEUR 317 for the first quarter of 2016 compared to kEUR 1,456 in the first quarter of 2015. This was mainly due to gain from foreign currency transactions amounting to kEUR 37 in the first quarter of 2016 compared to kEUR 924 in last year’s same period. In addition, other operating income included the release of deferred income amounting to kEUR 74 in the first quarter of 2016 compared to kEUR 304 in the comparative period.

The increase of losses and the decrease of gains from foreign currency transactions were primarily driven by the valuation of the intercompany loans granted by voxeljet AG to its UK and U.S. subsidiaries. The loans are denominated in GBP and USD, respectively. The financial impact reflects the strengthening of the euro, which has gained against the GBP and USD in the first quarter of 2016 whereas in last year’s same period the effect was in the opposite direction.

Operating loss was kEUR 3,087 in the first quarter of 2016, compared to an operating loss of kEUR 1,466 in the prior year period. Our operating loss in the first quarter of 2016 was a result of lower gross profit contribution from both segments Systems and Services as well as a negative net impact from foreign exchange valuation amounting to kEUR 721 compared to a positive net impact of kEUR 824 in last year’s same period. This was partially offset by lower operating expenses within the functions R&D, sales and marketing as well as administration.

Financial result was negative kEUR 27 in the first quarter of 2016, compared to a financial result of negative kEUR 99 in the prior year period. The decrease in interest expense was mainly driven by the reduced number of finance leases after the restructuring of voxeljet UK in 2015.

Net loss for the first quarter of 2016 was kEUR 3,114, or EUR 0.84 per share, as compared to net loss of kEUR 1,630, or EUR 0.49 per share, in the first quarter of 2015.

Based on a conversion rate of five American Depositary Shares (“ADSs”) per ordinary share, net loss was EUR 0.17 per ADS for the three months ended March 31, 2016 compared to net loss of EUR 0.10 per ADS in the prior year period.

Business Outlook

We reaffirm our revenue guidance in a range of between kEUR 28,000 and kEUR 30,000 for the year ending December 31, 2016.

Our revenue guidance for the second quarter of 2016 is in the range of kEUR 6,500 to kEUR 7,000.

The primary drivers of the Company’s anticipated revenue growth for the year ending December 31, 2016 are expected to be: (1) increased global Systems sales; (2) continued Services revenue growth at its facility in Friedberg, Germany; (3) contribution from voxeljet America, which began operating in January 2015; and (4) offset by a smaller revenue contribution from voxeljet UK after the restructuring in the fourth quarter of 2015.

Our total backlog of 3D printer orders at March 31, 2016 was kEUR 5,407, which represents eight 3D printers. This compares to a backlog of kEUR 5,613, representing nine 3D printers, at December 31, 2015. As production and delivery of our printers varies and is characterized by lead times between three and nine months, the conversion rate of order backlog into revenue is dependent on the equipping process for...


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