Second Quarter 2019 Financial Results
Except as otherwise required by the context, references to Materialise, Company, we, us and
our are to Materialise NV and its subsidiaries.
Second Quarter 2019 Results
Total revenue for the second quarter of 2019 increased 7.4% to 48,404 kEUR compared to 45,076 kEUR for the second quarter of 2018.
Revenue from our Materialise Software segment increased 2.1% to 9,320 kEUR for the second quarter of 2019 from 9,131 kEUR for the same quarter last year.
Revenue from our Materialise Medical segment increased 17.3% to 14,546 kEUR for the second quarter of 2019 compared to 12,400 kEUR for the same
period in 2018. Compared to the same quarter in 2018, revenues from medical devices and services grew 12.8%, and revenues from our medical software grew 28.0%.
Revenue from our Materialise Manufacturing segment increased 5.0% to 24,550 kEUR for the second quarter of 2019 from 23,387 kEUR for the second quarter
of 2018.
Gross profit was 26,527 kEUR, or 54.8% of total revenue, for the second quarter of 2019 compared to 24,788 kEUR, or 55.0% of total revenue,
for the second quarter of 2018.
Research and development (R&D), sales and marketing (S&M) and general and
administrative (G&A) expenses increased, in the aggregate, 8.4% to 27,861 kEUR for the second quarter of 2019 from 25,699 kEUR for the second quarter of 2018.
Net other operating income decreased to 1,370 kEUR from 1,840 kEUR for the second quarter of 2018.
Operating result decreased to 36 kEUR from 928 kEUR for the same period in the prior year.
Net financial result was (190) kEUR compared to (376) kEUR for the prior-year period. The share in loss of joint venture amounted to
(82) kEUR compared to (141) kEUR for the same period last year.
The second quarter of 2019 contained income tax expenses of
(61) kEUR, compared to (42) kEUR in the second quarter of 2018.
As a result of the above, net loss for the second quarter of 2019 was
(297) kEUR, compared to 369 kEUR for the same period in 2018. Total comprehensive income for the second quarter of 2019, which includes exchange differences on translation of foreign operations, was (727) kEUR compared to a gain of 422
kEUR for the same period in 2018.
Adjusted EBITDA decreased to 5,059 kEUR from 5,219 kEUR. The Adjusted EBITDA margin (Adjusted EBITDA divided by
total revenue) for the second quarter of 2019 was 10.5% compared to 11.6% in the second quarter of 2018.
Segment EBITDA from our Materialise
Software segment decreased to 2,055 kEUR from 2,859 kEUR while the segment EBITDA margin (the segments EBITDA divided by the segments revenue) was 22.1% compared to 31.3% in the prior-year period.
Segment EBITDA from our Materialise Medical segment was 2,738 kEUR compared to 2,124 kEUR while the segment EBITDA margin increased from 17.1% to 18.8%
for the second quarter of 2019.
Segment EBITDA from our Materialise Manufacturing segment increased to 2,835 kEUR from 2,264 kEUR while the segment
EBITDA margin increased to 11.5% from 9.7% for the second quarter of 2018.
At June 30, 2019, we had cash and equivalents of 108,865 kEUR
compared to 115,506 kEUR at December 31, 2018. Gross debt amounted to 107,698 kEUR (including 5,050 kEUR lease liabilities from the new accounting standard IFRS 16), as compared to 106,037 kEUR at December 31, 2018. Cash flow from
operating activities for the second quarter of 2019 was 4,759 kEUR compared to 4,831 kEUR for the same period in 2018. Total capital expenditures for the quarter amounted to 3,052 kEUR. This amount includes 366 kEUR of capitalized R&D
expenditures from medical programs.
Net shareholders equity at June 30, 2019 was 135,781 kEUR compared to 135,989 kEUR at
December 31, 2018.
Note on Comparability