FRIEDBERG, Germany — (BUSINESS WIRE) — November 14, 2019 — voxeljet AG (NYSE: VJET) (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 third quarter ended September 30, 2019.
Highlights - Third Quarter 2019 compared to the Third Quarter 2018
- Total revenues for the third quarter decreased 37.7% to kEUR 4,436 from kEUR 7,121
- Gross profit margin decreased to 19.5% from 32.5%
- Systems revenues decreased 56.3% to kEUR 1,636 from kEUR 3,744
- Services revenues decreased 17.1% to kEUR 2,800 from kEUR 3,377
- Restructuring of voxeljet UK
- Lowered full year 2019 revenue guidance to between kEUR 24,000 and kEUR 27,500
- Revenue for the fourth quarter of 2019 is expected to be in the range of kEUR 9,000 to kEUR 12,500.
Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented, “At voxeljet, it is our mission to establish new manufacturing standards. For metal parts, we have introduced VJET X last year and we are working on a project for a leading German automotive OEM. For functional plastic parts, we are thrilled to launch our new HSS-X 1000 3D printer at next week's formnext show. At the show in Frankfurt, we will present a prototype version of the HSS-X 1000 for series production of sports equipment, consumer goods & electronics, for mobility & transportation and similar end user markets. We believe this new 3D printer possesses a six times higher build volume than 3D printers from our closest competitors. In short, we continue to innovate and are very excited about the opportunities ahead.”
Third Quarter 2019 Results
Revenues for the third quarter of 2019 decreased by 37.7% to kEUR 4,436 compared to kEUR 7,121 in the third quarter of 2018.
Revenues from our Systems segment, which focuses on the development, production and sale of 3D printers, decreased 56.3% to kEUR 1,636 in the third quarter of 2019 from kEUR 3,744 in last year’s third quarter. The Company delivered three new 3D printers in the third quarter of 2019 as well as in last year’s third quarter. In the third quarter of 2019, the Company sold smaller printers compared to larger platforms in the comparative period last year, which resulted in significantly lower revenues. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. Those Systems-related revenues increased in the third quarter year over year, which reflects the higher installed base of 3D printers in the market and the associated growth in aftersales activities. Systems revenues represented 36.9% of total revenues in the third quarter of 2019 compared to 52.6% in last year’s third quarter.
Revenues from our Services segment, which focuses on the printing of on-demand parts for our customers, decreased 17.1% to kEUR 2,800 in the third quarter of 2019 from kEUR 3,377 in the comparative period of 2018. This was mainly due to lower revenue contributions from the German operation. Revenues from the German operation reflected the slight slowdown of the economy in Western Europe, mainly related to the automotive industry. Revenue contributions from our subsidiary voxeljet America Inc. (“voxeljet America”) also decreased mainly due to fewer orders placed under a volume contract which started in July 2018. This was partially offset by higher revenue contribution from voxeljet China Co. Ltd. (“voxeljet China”), mainly due to a growing market penetration in the region, which is accompanied by a larger customer base. Revenues from voxeljet UK Ltd. (“voxeljet UK”) slightly increased.
Cost of sales was kEUR 3,571 for the third quarter of 2019 compared to kEUR 4,810 for the third quarter of 2018.
Gross profit and gross profit margin were kEUR 865 and 19.5%, respectively, in the third quarter of 2019 compared to kEUR 2,311 and 32.5% in the third quarter of 2018.
Gross profit for our Systems segment decreased to kEUR 357 in the third quarter of 2019 from kEUR 1,197 in the third quarter of 2018. This was mainly related to the decrease in revenues of kEUR 2,108 compared to the last year’s same period. Gross profit margin for this segment decreased to 21.8% in the third quarter of 2019 compared to 32.0% in the third quarter of 2018. Gross profit margin from the sale of 3D printers was almost flat, while Systems-related revenues contributed a significant lower gross profit margin due to a higher portion of Systems-related revenues stems from printhead sales with lower gross profit margin.
Gross profit for our Services segment decreased to kEUR 508 in the third quarter of 2019 compared to kEUR 1,114 in the third quarter of 2018. This was partially due to the impacts from restructuring of voxeljet UK amounting to kEUR 284. The Company decided to consolidate 3D printing process to serve all customers in Europe from the German service center and restructure the voxeljet UK entity. The restructuring includes reduction in headcount and disposal of certain assets. The Company will also early-terminate the lease of the Milton Keynes facility during the fourth quarter of 2019. This will help to reduce overall costs and should lead to improved gross profit margins by realizing economies of scale in the German service center. voxeljet UK will expand its sales team and will focus on selling 3D printed parts and 3D printers. In addition gross profit from the German service center as well as voxeljet America decreased, mainly related to lower revenues. The gross profit margin for this segment decreased to 18.1% in the third quarter of 2019 from 33.0% in the third quarter of 2018. This was related to the restructuring of voxeljet UK as well as lower gross profit margin from voxeljet America as result of higher costs related to higher maintenance expenses compared to the last year’s same period. Gross profit margin from the German service center slightly increased due to a lower number of printhead replacements in the third quarter of 2019 compared to the third quarter of 2018.
Selling expenses were kEUR 1,687 for the third quarter of 2019 compared to kEUR 1,990 in the third quarter of 2018. Shipping and packaging expenses were a main driver of the selling expenses and can vary from quarter to quarter depending on quantity and types of products sold, as well as the destinations of where those goods are being delivered. The decrease was mainly due to lower distribution expenses as a result of the decrease in revenues. The third quarter of 2019 was also impacted by charges related to the restructuring of voxeljet UK which amounted to kEUR 35.
Administrative expenses were kEUR 1,567 for the third quarter of 2019 compared to kEUR 1,494 in the third quarter of 2018. This was mainly due to restructuring charges amounting to kEUR 212, which have been recorded in the third quarter of 2019 at voxeljet UK. This was partially offset by lower consulting fees related to our SAP ERP system in the third quarter of 2019 compared to last year’s same period.