Selling expenses were kEUR 7,332 for the year ended December 31, 2018 compared to kEUR 6,474 in the same period in 2017, representing an increase of kEUR 858, or 13.3%. This was almost in line with the increase in revenues.
Administrative expenses increased by kEUR 458, or 8,9% to kEUR 5,587 for the year ended December 31, 2018 from kEUR 5,129 in the prior year period. This was mainly due to the significant increase in headcount resulting in higher personnel expenses resulting from higher headcount in order to meet our compliance requirements in connection with SOX.
Research and development expenses increased to kEUR 6,334 for the year ended December 31, 2018 from kEUR 5,528 in the same period in 2017, an increase of kEUR 806, or 14.6%. This was mainly due to higher labor costs related to salary increases and higher headcount as well as higher consumption of materials to support existing and future research and development projects.
Other operating expenses for the year ended December 31, 2018 were kEUR 751 compared to kEUR 1,844 in the prior year period. This is mainly due to lower losses from foreign currency translations. Foreign currency losses amounted to kEUR 511 for the year ended December 31, 2018, compared to kEUR 1,585 in the same period in 2017. The losses from foreign currency transactions were primarily driven by the valuation of the intercompany loans granted by the parent company to our US and UK subsidiaries.
Other operating income was kEUR 1,297 for the year ended December 31, 2018 compared to kEUR 1,001 in the prior year period. The increase was mainly due to higher gains from foreign currency transactions of kEUR 794 in 2018 compared to kEUR 135 in 2017.
Operating loss was kEUR 9,562 for the year ended December 31, 2018, compared to an operating loss of kEUR 8,649 in the comparative period in 2017. This was mainly due to higher operating expenses related to sales and marketing, administration and research and development, while gross profit was almost flat.
Financial result was positive of kEUR 809 for the year ended December 31, 2018, compared to a positive financial result of kEUR 175 in the comparative period in 2018. This was mainly due to finance income from the revaluation of the embedded derivative related to the Performance Participation Interest in connection with the first tranche of the loan received by the European Investment Bank.
Net loss for the year ended December 31, 2018 was kEUR 8,764, or EUR 2.21 per share, as compared to net loss of kEUR 8,554, or EUR 2.30 per share in the prior year period.
Based on a conversion rate of five ADSs per ordinary share, net loss was EUR 0.44 per ADS for the year ended December 31, 2018 compared to net loss of EUR 0.46 per ADS in the prior year period.
Our revenue guidance for the first quarter of 2019 is projected to be in the range of kEUR 5,000 to kEUR 5,500. We expect to release our financial results for the first quarter of 2019 after the closing of the financial markets on or about Thursday, May 16, 2019 and we will host a conference call and webcast to review the results for the quarter on or about Friday, May 17, 2019 at 8:30 a.m. Eastern Time.
Financial guidance for the full year ended December 31, 2019.
- Revenue is expected to be in the range of kEUR 27,000 and kEUR 30,000
- Gross margin is expected to be above 40%
- Operating expenses for the full year are expected as follows: SG&A expenses expected to be in the range of kEUR 12,000 to kEUR 12,500; R&D expenses expected to be between approximately kEUR 5,500 and kEUR 6,000. Depreciation and amortization expense is expected to be between kEUR 3,750 and kEUR 4,000.
- Adjusted EBITDA for the second half of the year ending December 31, 2019 is expected to be neutral-to-positive. Adjusted EBITDA is defined as net income (loss), as calculated under IFRS accounting principles before interest (income) expense, provision (benefit) for income taxes, depreciation and amortization, and excluding other (income) expense resulting from foreign exchange gains or losses on the intercompany loans granted to the subsidiaries, which are not determinable at this time.
- Capital expenditures are projected to be in the range of kEUR 2,000 to kEUR 2,500, which primarily includes ongoing investments in our global subsidiaries.
Our total backlog of 3D printer orders at December 31, 2018 was kEUR 3,392, which represents six 3D printers. This compares to a backlog of kEUR 2,770 at December 31, 2017, representing four 3D printers. As production and delivery of our printers is generally characterized by lead times ranging from three to nine months, the conversion rate of order backlog into revenue is dependent on the equipping process for the respective 3D printer as well as the timing of customers’ requested deliveries.
At December 31, 2018, we had cash and cash equivalents of kEUR 7,402 and
held kEUR 12,905 of investments in bond funds, which are included in
current financial assets on our consolidated statements of financial