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, 2017.
Highlights - Third Quarter 2017
- Total revenues for the third quarter
increased 50.8% to kEUR 7,387 from kEUR 4,897
- Gross profit margin improved to 43.5%
from 41.1%
- Systems revenues increased 62.9% to
kEUR 4,153 from kEUR 2,549
- Services revenues increased 37.7% to
kEUR 3,234 from kEUR 2,348
- Reaffirm full year 2017 guidance,
except EBITDA, which is expected to be neutral to positive in the
second half of the business year 2017, excluding impacts from
foreign exchange valuations
- Successful finalization and move to new
buildings in early October 2017 at our headquarter in Friedberg,
Germany
- Signing of loan contract with the
European Investment Bank on November 9, 2017
Dr. Ingo Ederer, Chief Executive Officer of voxeljet,
commented, “We are successfully driving towards a better and more
focused voxeljet group and as well are strongly executing on our
strategic goals. I am very pleased with our performance as we saw
the second strongest quarter in terms of revenues and, even more
important, gross profits at a record level. We are excited to have
signed off on a loan of up to 25 million Euros with the European
Investment Bank to fuel our ongoing research and development
initiatives for the upcoming years and to ignite the next level of
accelerated growth.”
Third Quarter 2017 Results
Revenues for the third quarter of 2017 increased by 50.8% to
kEUR 7,387 compared to kEUR 4,897 in the third quarter of
2016.
Revenues from our Systems segment, which focuses on the
development, production and sale of 3D printers, increased 62.9% to
kEUR 4,153 in the third quarter of 2017 from kEUR 2,549
in last year’s third quarter. This was mainly due to a higher
number of printer sales. The Company delivered six printers (three
new and three used and refurbished) in the third quarter of 2017,
compared to three new printers delivered in last year’s third
quarter. Systems revenues also include all revenues from
consumables, spare parts and maintenance, where we recorded a
slight decrease compared to the last year’s same period. Systems
revenues represented 56.2% of total revenues in the third quarter
of 2017 compared to 52.1% in last year’s second quarter.
Revenues from our Services segment, which focuses on the
printing of on-demand parts for our customers, increased 37.7%, to
kEUR 3,234 in the third quarter of 2017 from kEUR 2,348 in the
comparative period of 2016. This was mainly due to higher revenue
contribution from our subsidiaries, voxeljet America Inc.
(“voxeljet America”) and voxeljet China Co. Ltd (“voxeljet China”),
which was established during the second quarter of 2016. The
increase in revenue at our American and Chinese service centers
resulted from a growing market penetration in the respective sales
regions which is accompanied by a bigger customer base as well as a
slightly increased contribution from our German service center.
This was partially offset by lower contributions from our
subsidiary voxeljet UK Ltd. (“voxeljet UK”).
Cost of sales was kEUR 4,170 for the third quarter of 2017
compared to kEUR 2,882 for the third quarter of 2016.
Gross profit and gross profit margin were kEUR 3,217 and 43.5%,
respectively, in the third quarter of 2017 compared to
kEUR 2,015 and 41.1% in the third quarter of 2016.
Gross profit for our Systems segment increased to
kEUR 1,584 in the third quarter of 2017 from kEUR 1,013 in the
third quarter of 2016. This was due to the increase in revenues.
Gross profit margin for this segment decreased to 38.1% in the
third quarter of 2017 compared to 39.7% in the third quarter of
2016. The decrease mainly resulted from lower gross margin related
to consumables, spare parts and maintenance, partially offset by
slightly better gross profit margin on printer sales.
Gross profit for our Services segment significantly increased to
kEUR 1,633 in the third quarter of 2017 compared to kEUR 1,002 in
the third quarter of 2016. This is mainly due to the increase in
revenues. The gross profit margin for this segment increased to
50.5% in the third quarter of 2017 from 42.7% in the third quarter
of 2016. This was mainly related to stronger gross profit margin
contributions from our subsidiary voxeljet America partially offset
by weaker gross profit margin from voxeljet UK. The improvement
regarding voxeljet America resulted from a higher utilization of
this service center. Gross profit margin from the German operation
remained almost unchanged.
Selling expenses were kEUR 1,615 for the third quarter of
2017 compared to kEUR 1,206 in the third quarter of 2016. The
increase is mainly due to higher personnel expenses resulting from
higher headcount especially at our subsidiary voxeljet China
compared to the last year’s third quarter.
Administrative expenses were kEUR 1,354 for the third quarter of
2017 compared to kEUR 1,161 in the third quarter of 2016. This
increase is mainly due to higher expenses for the preparation of
several financing activities.
Research and development (“R&D”) expenses decreased to kEUR
1,142 in the third quarter of 2017 from kEUR 1,487. The
decrease of kEUR 345 was mainly due to lower expenses related
to material and external services for various projects compared to
the last year’s same period. Those expenses are usually driven by
individual projects and might differ on a quarter to quarter
comparison.
Other operating expenses in the third quarter of 2017 were kEUR
414 compared to kEUR 1,899 in the prior year period. This was
mainly due to the one-off impact of impairment charges totaling
kEUR 1,423 relating to our UK operations in the third quarter
of 2016. Foreign currency transaction losses amounting to
kEUR 305 for the third quarter of 2017 compared to
kEUR 442 in the third quarter of 2016.
Other operating income was kEUR 384 for the third quarter of
2017 compared to kEUR 204 in the third quarter of 2016. The
increase was mainly due to higher gains from foreign currency
transactions.
The losses and gains from foreign currency transactions was
primarily driven by the valuation of the intercompany loans granted
by the parent company to our UK and US subsidiaries. The loans are
denominated in GBP and USD, respectively. The financial impact
reflects the strengthening of the Euro against the USD in the third
quarter of 2017. The intercompany loans granted by the parent
company to our Chinese and Indian subsidiaries are denominated in
Euro. The decline of the CNY against the Euro in the third quarter
of 2017 led to foreign currency losses within the group.
Operating loss was kEUR 924 in the third quarter of 2017,
compared to an operating loss of kEUR 3,534 in the comparative
period in 2016. The significant improvement was primarily related
to higher gross profit in combination with the one-time impairment
charges of kEUR 1,423, recorded in the third quarter of 2016.
Net loss for the third quarter of 2017 was kEUR 960 or
EUR 0.26 per share, as compared to net loss of
kEUR 3,533, or EUR 0.94 per share, in the third quarter
of 2016.
Based on a conversion rate of five American Depositary Shares
(“ADSs”) per ordinary share, net loss was at EUR 0.05 per ADS
for the third quarter of 2017, compared to a net loss of
EUR 0.19 for the third quarter of 2016. Earnings per share is
computed by dividing net income attributable to stockholders of the
parent by the weighted-average number of ordinary shares
outstanding during the periods. Earnings per ADS is calculated by
dividing the above earnings per share by five as each ordinary
share represents five ADSs.
Nine Months Ended September 30, 2017
Results
Revenues for the nine months ended September 30, 2017
increased by 6.3% to kEUR 17,070 compared to kEUR 16,063
in the prior year’s period.
Systems revenues were kEUR 8,388 for the first nine months
of 2017 compared to kEUR 9,147 in last year’s period. The
Company sold eight new and three used and refurbished 3D printers
during the first nine months of 2017 compared to nine new and three
used and refurbished 3D printers in the prior year’s period.
Systems revenues represented 49.1% of total revenue for the nine
months ended September 30, 2017 compared to 56.9% for the
same period a year ago.
Services revenues were kEUR 8,682 for the nine months ended
September 30, 2017 compared to kEUR 6,916 for the same
period last year. This increase was mainly due to a higher revenue
contribution from the German operation and our subsidiaries
voxeljet America and voxeljet China. The pleasant development of
revenue at our German service center is due to the robust economy
on the European market. The growth in revenue at our American and
Chinese service centers resulted from a growing market penetration
in the respective sales regions which is accompanied by a bigger
customer base. This was partially offset by a lower revenue
contribution from voxeljet UK.
Cost of sales for the nine months ended
September 30, 2017 was kEUR 10,162, a slight decrease of
kEUR 252, or 2%, over cost of sales of kEUR 10,414 for the same
period in 2016.
Gross profit and gross profit margin for the nine months ended
September 30, 2017 were kEUR 6,908 and 40.5%,
respectively, compared to kEUR 5,649 and 35.2% in the prior year
period.
Gross profit for our Systems segment remained almost unchanged
at kEUR 2,862 for the nine months ended
September 30, 2017 compared to kEUR 2,818 in the
same period of 2016. The gross profit margin for this segment
increased to 34.1% compared to 30.8% for the prior period. The
increase mainly resulted from better gross profit margin regarding
printer sales due to the product mix. The gross profit margin for
revenues from consumables, spare parts and maintenance almost
remained on the same level, compared to the nine months ended
2016.
Gross profit for our Services segment increased to kEUR 4,046
for the nine months ended September 30, 2017 from
kEUR 2,831 in the same period of 2016. This was mainly related
to the increase in revenues. The gross profit margin for this
segment increased to 46.6% from 40.9% mainly due to a better
utilization of the service centers regarding our subsidiaries
voxeljet America and voxeljet China. As a consequence gross profit
margins of voxeljet America as well as voxeljet China improved. The
gross profit margin at our German operation remained constant,
while the gross profit contribution from voxeljet UK decreased. The
weaker gross profit margin from our service center in the UK was
mainly due to a lower utilization.
Selling expenses were kEUR 4,400 for the nine months ended
September 30, 2017 compared to kEUR 3,674 in the same
period in 2016, an increase of kEUR 726, or 19.8%. This was mainly
due to higher personnel expenses.
Administrative expenses increased by kEUR 339 to kEUR 3,702 for
the first nine months of 2017 from kEUR 3,363 in the prior year’s
period. This increase is mainly due to higher expenses for the
preparation of several financing activities.
R&D expenses slightly increased to kEUR 3,954 for the nine
months ended September 30, 2017 from kEUR 3,843 in the
same period in 2016, an increase of kEUR 111, or 2.9%. The increase
was mainly due to higher personnel expenses and higher expenses for
materials related to various projects.
Other operating expenses for the nine months ended
September 30, 2017 were kEUR 1,605 compared to kEUR 3,846
in the prior year period. This improvement was mainly due to the
one-time impairment charges of kEUR 1,423 recorded in the third
quarter of 2016. Losses from foreign currency transactions, mostly
related to intercompany loans to our subsidiaries in UK and US,
amounted to kEUR 1,383 compared to kEUR 1,672 in the
prior year’s period.
The changes in foreign currency losses were primarily driven by
the valuation of the intercompany loans granted by the parent
company to our UK and US subsidiaries as well as to the Chinese
subsidiary.
Other operating income was kEUR 766 for the nine months ended
September 30, 2017 compared to kEUR 848 in the prior year
period. The decrease was mainly due to lower gains from foreign
currency transactions amounting to kEUR 78 compared to
kEUR 214 in comparative period and lower amortization of
deferred income of kEUR 28 compared to kEUR 148 in the
comparative period in 2016.
Net loss for the nine months ended September 30, 2017
was kEUR 6,065, or EUR 1.63 per share, as compared to net loss
of kEUR 8,352, or EUR 2.24 per share in the prior year period.
This is based on a weighted average number of ordinary shares
outstanding of 3.720 million for the first nine months ended
September 30, 2017. Compared to the last year’s same
period, the number of ordinary shares outstanding was unchanged.
Net loss was also impacted by our employee stock option plan, which
was granted in the second quarter of 2017 with an impact amounting
to kEUR 254.
Based on a conversion rate of five ADSs per ordinary share, net
loss was EUR 0.33 per ADS for the nine months ended
September 30, 2017 compared to net loss of EUR 0.45
per ADS in the prior year period. Earnings per share is computed by
dividing net income attributable to stockholders of the parent by
the weighted-average number of ordinary shares outstanding during
the periods. Earnings per ADS is calculated by dividing the above
earnings per share by five as each ordinary share represents five
ADSs.
Business Outlook
Our revenue guidance for the fourth quarter of 2017 is in the
range of kEUR 8,000 to kEUR 10,000.
We reaffirm our guidance for the full year ended December 31,
2017, except EBITDA.
- Full year revenue is expected to be in the
range of kEUR 26,000 and kEUR 28,000
- Gross margin is expected to be above
40%
- Operating expenses for the full year are
expected as follows: SG&A expenses in the range of
kEUR 9,250 and kEUR 10,250 and R&D expenses to be
approximately kEUR 4,750 to kEUR 5,750. Depreciation and
amortization expense is expected to be between kEUR 3,000 and
kEUR 4,000.
- EBITDA is expected to be
neutral-to-positive in the second half of the business year 2017,
excluding impacts from foreign exchange valuations
Our total backlog of 3D printer orders at
September 30, 2017 was kEUR 2,215, which represents
three 3D printers. This compares to a backlog of kEUR
3,784 representing five 3D printers, at December 31, 2016. As
production and delivery of our printers is generally characterized
by lead times ranging between 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 September 30, 2017, we had cash and cash
equivalents of kEUR 2,787 and held kEUR 10,672 of
investments in bond funds, which are included in current financial
assets on our consolidated statements of financial position.
Webcast and Conference Call Details
The Company will host a conference call and webcast to review
the results for the third quarter on Friday,
November 10, 2017 at 8:30 a.m. Eastern Time. Participants
from voxeljet will include its Chief Executive Officer,
Dr. Ingo Ederer, and its Chief Financial Officer, Rudolf
Franz, who will provide a general business update and respond to
investor questions.
Interested parties may access the live audio broadcast by
dialing 1-877-705-6003 in the United States/Canada, or
1-201-493-6725 for international, Conference Title “voxeljet AG
Third Quarter 2017 Financial Results Conference Call”. Investors
are requested to access the call at least five minutes before the
scheduled start time in order to complete a brief registration. An
audio replay will be available approximately two hours after the
completion of the call at 1-844-512-2921 or 1-412-317-6671, Replay
Conference ID number 13672710. The recording will be available for
replay through November 17, 2017.
A live webcast of the call will also be available on the
investor relations section of the Company’s website. Please go to
the website
https://event.webcasts.com/starthere.jsp?ei=1168358&tp_key=f0f59e10c7
at least fifteen minutes prior to the start of the call to
register, download and install any necessary audio software. A
replay will also be available as a webcast on the investor
relations section of the Company’s website.
Exchange rate
This press release contains translations of certain U.S. dollar
amounts into euros at specified rates solely for the convenience of
readers. Unless otherwise noted, all translations from U.S. dollars
to euros in this press release were made at a rate of USD 1.1831 to
EUR 1.00, the noon buying rate of the Federal Reserve Bank of New
York for the euro on September 30, 2017.
About voxeljet
voxeljet is a leading provider of high-speed, large-format 3D
printers and on-demand parts services to industrial and commercial
customers. The Company’s 3D printers employ a powder binding,
additive manufacturing technology to produce parts using various
material sets, which consist of particulate materials and
proprietary chemical binding agents. The Company provides its 3D
printers and on-demand parts services to industrial and commercial
customers serving the automotive, aerospace, film and
entertainment, art and architecture, engineering and consumer
product end markets. For more information, visit
http://www.voxeljet.de/en/.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements
concerning our business, operations and financial performance. Any
statements that are not of historical facts may be deemed to be
forward-looking statements. You can identify these forward-looking
statements by words such as ‘‘believes,’’ ‘‘estimates,’’
‘‘anticipates,’’ ‘‘expects,’’ ‘‘plans,’’ ‘‘intends,’’ ‘‘may,’’
‘‘could,’’ ‘‘might,’’ ‘‘will,’’ ‘‘should,’’ ‘‘aims,’’ or other
similar expressions that convey uncertainty of future events or
outcomes. Forward-looking statements include statements regarding
our intentions, beliefs, assumptions, projections, outlook,
analyses or current expectations concerning, among other things,
our results of operations, financial condition, business outlook,
the industry in which we operate and the trends that may affect the
industry or us. Although we believe that we have a reasonable basis
for each forward-looking statement contained in this press release,
we caution you that forward-looking statements are not guarantees
of future performance. All of our forward-looking statements are
subject to known and unknown risks, uncertainties and other factors
that are in some cases beyond our control and that may cause our
actual results to differ materially from our expectations,
including those risks identified under the caption “Risk Factors”
in the Company’s Annual Report on Form 20-F and in other
reports the Company files with the U.S. Securities and Exchange
Commission, as well as the risk that our revenues may fall short of
the guidance we have provided in this press release. Except as
required by law, the Company undertakes no obligation to publicly
update any forward-looking statements for any reason after the date
of this press release whether as a result of new information,
future events or otherwise.
voxeljet AGCONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
Notes
9/30/2017 12/31/2016
(€ in
thousands)unaudited
Current assets 29,840 37,506 Cash and cash
equivalents 7 2,787 7,849 Financial assets 7 10,744 12,579 Trade
receivables 5,155 4,133 Inventories 4 9,391 11,213 Income tax
receivables 3 8 Other assets 1,760 1,724
Non-current
assets 28,990 24,633 Financial assets 7 211 211
Intangible assets 1,064 842 Property, plant and equipment 5 27,617
23,521 Investments in joint venture 7 45 -- Other assets 53 59
Total assets 58,830 62,139
Notes 9/30/2017 12/31/2016
Current liabilities 5,945 5,517 Deferred
income 366 332 Trade payables 2,556 1,765 Financial liabilities 7
1,276 1,297 Other liabilities and provisions 6 1,747 2,123
Non-current liabilities 6,763 5,086 Deferred
income 45 177 Deferred tax liabilities 1 1 Financial liabilities 7
6,662 4,817 Other liabilities and provisions 6 55 91
Equity 46,122 51,449 Subscribed capital 3,720
3,720 Capital reserves 76,081 75,827 Accumulated deficit (35,022)
(28,971) Accumulated other comprehensive income 1,270 873
Equity
attributable to the owners of the company 46,049
51,449 Non controlling interest 73 87
Total equity and liabilities 58,830 62,139
voxeljet AGCONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS (UNAUDITED)
Three months ended September 30, Nine
months ended September 30, Notes 2017
2016 2017 2016
(€ in thousands except share and share
data)
Revenues 8, 9 7,387 4,897 17,070 16,063 Cost of sales (4,170)
(2,882) (10,162) (10,414)
Gross profit 8 3,217
2,015 6,908 5,649 Selling expenses (1,615)
(1,206) (4,400) (3,674) Administrative expenses (1,354) (1,161)
(3,702) (3,363) Research and development expenses (1,142) (1,487)
(3,954) (3,843) Other operating expenses (414) (1,899) (1,605)
(3,846) Other operating income 384 204 766 848
Operating
loss (924) (3,534) (5,987) (8,229)
Finance expense (41) (8) (90) (135) Finance income 5 9 12 14
Financial result (36) 1 (78)
(121) Loss before income taxes (960)
(3,533) (6,065) (8,350) Income taxes — — — (2)
Net loss (960) (3,533) (6,065)
(8,352) Other comprehensive income 67 275 397
1,210
Total comprehensive loss (893) (3,258)
(5,668) (7,142) Loss attributable to:
Owners of the Company (955) (3,513) (6,051) (8,332) Non-controlling
interests (5) (20) (14) (20)
(960) (3,533)
(6,065) (8,352) Total comprehensive loss
attributable to: Owners of the Company (888) (3,238) (5,654)
(7,122) Non-controlling interests (5) (20) (14) (20)
(893)
(3,258) (5,668) (7,142)
Weighted average number of ordinary
sharesoutstanding
3,720,000 3,720,000 3,720,000 3,720,000 Loss per share - basic/
diluted (EUR) (0.26) (0.94) (1.63) (2.24)
voxeljet AGCONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY (UNAUDITED)
Attributable to the owners of the company
Accumulated other
Subscribed Capital Accumulate
comprehensive Non controlling (€ in thousands)
capital reserves deficit income (loss)
Total interest Total equity Balance at
January 1, 2016 3,720 75,671 (17,684)
(238) 61,469 — 61,469
Establishment of subsidiary withnon
controlling interest
— — — —
— 113
113 Loss for the period — — (8,332) —
(8,332) (20)
(8,352)
Net changes in fair value ofavailable for
sale financial assets
— — — 21
21 —
21 Foreign currency translations — — —
1,189
1,189 —
1,189
Equity-settled share-based
paymenttransaction
— 156 — —
156 —
156 Balance at September 30,
2016 3,720 75,827 (26,016) 972
54,503 93 54,596 Attributable to the
owners of the company
Subscribedcapital
Capitalreserves
Accumulateddeficit
Accumulatedothercomprehensivegain
Total
Non-controllinginterests
Totalequity
Balance at January 1, 2017 3,720 75,827
(28,971) 873 51,449 87 51,536
Loss for the period -- -- (6,051) --
(6,051) (14)
(6,065)
Net changes in fair value of available
forsale financial assets
-- -- -- 1
1 --
1 Foreign currency translations -- --
-- 396
396 --
396 Equity-settled share-based payment
-- 254 -- --
254 --
254 Balance at September 30,
2017 3,720 76,081 (35,022) 1,270
46,049 73 46,122
voxeljet AGCONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)
Nine months ended September 30, 2017
2016 (€ in thousands) Cash Flow from operating
activities Loss for the period (6,065)
(8,352) Depreciation and amortization 2,272 1,878
Foreign currency exchange differences on loans to subsidiaries 213
1,158 Equity-settled share-based payment transaction 254 256
Impairment losses on trade receivables 214 293 Impairment of
goodwill -- 1,130
Change in working capital
(3,460) (7,840) Trade receivables, inventories and
other assets (3,415) (5,996) Trade payables 455 329 Other
liabilities and provisions and deferred income (505) (2,219) Income
tax receivable/ payable 5 46
Total (6,572)
(11,477) Cash Flow from investing activities
Payments to acquire property, plant and equipment and
intangible assets (2,118) (2,172) Net proceeds from disposal of
financial assets 1,835 17,218 Investment in Joint Venture (50) --
Total (333) 15,046 Cash Flow from
financing activities Repayment from bank overdrafts and
lines of credit (94) (165) Repayment of sale and leaseback
obligation (292) (373) Repayment of finance lease obligation (33)
(28) Repayment of long-term debt (533) (235) Proceeds of long-term
debt 2,611 2,335
Total 1,659 1,534
Net increase
(decrease) in cash and cash equivalents (5,246)
5,103 Cash and cash equivalents at beginning of
period 7,849 2,086 Changes to cash and
equivalents due to foreign exchanges rates 184 (4)
Cash and cash
equivalents at end of period 2,787 7,185
Supplemental Cash Flow Information Interest paid 159 128
Interest received 14 37 PPE added under finance lease 123 54
voxeljet AG
NOTES TO THE INTERIM FINANCIAL
STATEMENTS
1. Preparation of financial statements
Our consolidated interim financial statements include the
accounts of voxeljet AG, which is listed on the New York Stock
Exchange, and its wholly-owned subsidiaries voxeljet America Inc,
voxeljet UK Ltd. and voxeljet India Pvt. Ltd., as well as voxeljet
China Co. Ltd., which are collectively referred to herein as the
‘Group’ or the ‘Company.’
Our consolidated interim financial statements were prepared in
compliance with all applicable measurement and presentation
rules contained in International Financial Reporting Standards
(‘IFRS’) as set forth by the International Accounting Standards
Board (‘IASB’) and Interpretations of the IFRS Interpretations
Committee (‘IFRIC’). The designation IFRS also includes all valid
International Accounting Standards (‘IAS’); and the designation
IFRIC also includes all valid interpretations of the Standing
Interpretations Committee (‘SIC’). Specifically, these financial
statements were prepared in accordance with the disclosure
requirements and the measurement principles for interim financial
reporting purposes specified by IAS 34.
The IASB issued a number of new IFRS standards which are
required to be adopted in annual periods beginning after January 1,
2017.
Standard Effective date
Descriptions IFRS 9 01/2018 Financial
Instruments IFRS 15 01/2018 Revenue from Contracts with Customers
IFRS 2 01/2018 Amendments Classifications and Measurement of
Share-based Payments Transactions IFRS 4 01/2018 Amendments
Applying IFRS 9 Financial Instruments with IFRS 4 Insurance
Contracts IAS 40 01/2018 Amendment of Transfers of Investment
Property IFRIC 22 01/2018 Foreign Currency Transactions and Advance
Considerations IFRS 16 01/2019 Leases IFRIC 23 01/2019 Uncertainty
over Income Tax Treatments IFRS 17 01/2021 Insurance Contracts IFRS
10, IAS 28 indefinite
Amendment Sale or Contribution of Assets
between Investor and its Associate or JointVenture
IFRS 15 establishes a comprehensive framework for determining
whether, how much and when revenue is recognized. It replaces
existing revenue recognition guidance, including IAS 18 Revenue,
IAS 11 Construction Contracts and IFRIC 13 Customer Loyalty
Programmes. IFRS 15 is effective for annual periods beginning on or
after January 1, 2018, with early adoption permitted. The Company
has developed a project plan to analyze the potential impact IFRS
15 will have on its consolidated financial statements and related
disclosures as well as its business processes, systems and
controls. This includes reviewing revenue contracts across all
revenue streams and evaluating potential differences that would
result from applying the requirements under the new guidance. Based
on the analysis conducted to date, the Company is currently
evaluating the impact of the adoption of this standard on its
consolidated financial statements and the method of adoption. We
only expect an impact related to the revenue recognition regarding
the revenue streams from maintenance contracts. The adoption of
IFRS 15 will lead to minor timing differences for revenue
recognition related to those kind of contracts with customers.
IFRS 9 Financial Instruments is the IASB’s replacement of IAS 39
Financial Instruments. The standard includes requirements for
recognition and measurement, impairment, derecognition and general
hedge accounting. The Company has developed a project plan to
analyze the potential impact IFRS 9 will have on its consolidated
financial statements and related disclosures as well as its
business processes, systems and controls. This includes the
assessment of credit risk related to financial assets as well as
the reconsideration of classification of financial instruments.
The interim financial statements as of and for the nine months
ended September 30, 2017 and 2016 were authorized for issue by the
Management Board on November 9, 2017.
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of
these interim financial statements are set out in the Company’s
financial statements as of December 31, 2016, which can be
found in its Annual Report on Form 20-F that was filed with
the U.S. Securities and Exchange Commission. These policies have
been applied to all financial periods presented.
3. Share based payment arrangements
On April 7, 2017 voxeljet AG established a share option plan
that entitles key management personnel and senior employees of
voxeljet AG and its subsidiaries to purchase shares of the parent
company.
Total options available under the share option plan are 372,000
of which 279,000 (75%) were granted on April 7, 2017. The vesting
conditions include a service condition (the options vest after a
period of four years) and a market condition (the options may only
be exercised if the share price exceeds the exercise price over a
period of 90 consecutive days by at least 20% in the period between
the issue date and the respective exercise time frame) which both
must be met.
The fair value of the employee share purchase plan has been
measured using a Monte Carlo simulation. The market condition has
been incorporated into the fair value at grant date.
The inputs used in the measurement of the fair value at grant
date are as follows:
- share price at grant date:
USD 13.80
- exercise price: USD 13.90
- expected volatility: 55%
- expected dividends: --
- risk-free interest rate: 2.49%
- fair value at grant date:
USD 8.00
The expected volatility has been based on an evaluation of the
historical volatility of the company’s share price. As at September
30, 2017 no options are exercisable and 279,000 options are
outstanding.
The expenses recognized in the profit and loss statement amount
to kEUR 132 in the three months and kEUR 254 in the nine
months ended September 30, 2017, respectively. (2016: kEUR 0
and KEUR -478, respectively, in relation to the release of certain
accruals on long-term cash incentive plan).
4. Inventories
9/30/2017 12/31/2016
(€ in thousands) Raw materials and merchandise 3,274 1,850
Work in progress 6,117 9,363
Total 9,391
11,213
5. Property, plant and equipment, net
9/30/2017 12/31/2016
(€ in thousands) Land, buildings and leasehold improvements
11,944 12,020 Plant and machinery (includes assets under finance
lease) 8,992 6,730 Other facilities, factory and office equipment
1,527 1,522 Assets under construction 5,154 3,249
Total
27,617 23,521 Leased assets included in
Property, Plant and Equipment: 880 1,067 Printers
680 964 Other factory equipment 200 103
Printers leased
to customers under operating lease 108 141
Assets under construction mainly relate to a new production
building as well as a new office building at voxeljet’s headquarter
in Friedberg, Germany.
6. Other liabilities and provisions
9/30/2017 12/31/2016
(€ in thousands) Customer deposits 191 183 Liabilities from
VAT 9 174 Employee bonus 48 143 Accruals for vacation and overtime
251 170 Accruals for licenses 163 258 Liabilities from payroll 192
211 Accruals for commissions 73 190 Accruals for compensation of
supervisory board 135 180 Accrual for warranty 406 400 Others 334
305
Total 1,802 2,214
7. Financial instruments
The fair value of a financial instrument is the price that would
be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement
date.
The fair value hierarchy defines the following levels:
- Level 1: Quoted prices of the
respective financial asset or financial liability in active
markets
- Level 2: Other directly observable
input parameters which contribute to establishing the fair value
based on a valuation model
- Level 3: Input parameters not
based on observable market data
Under IAS 39 there are the following categories:
(I) A financial asset or financial liability
at fair value through profit or loss
(II) Held-to-maturity investments
(III) Available-for-sale financial assets
(IV) Loans and receivables
(V) Financial liabilities measured at
amortized cost
9/30/2017 I.
II. III. IV. V. Fair Value
Level Assets
Non-current
assets
Restricted cash -- -- -- 206 -- 206 Level 1 Equity securities -- --
5 -- -- 5 Level 3 Investments in joint venture -- 45 -- -- -- 45
Level 3
Current
assets
Bond funds -- -- 10,744 -- -- 10,744 Level 1 Cash and cash
equivalents -- -- -- 2,787 -- 2,787 Level 1
Liabilities
Non-current
liabilities
Long-term debt -- -- -- -- 6,428 5,264 Level 2 Finance lease
obligation -- -- -- -- 234 199 Level 2
Current
liabilities
Bank overdraft -- -- -- -- 131 131 Long-term debt -- -- -- -- 791
785 Level 2 Finance lease obligation -- -- -- -- 354 379 Level 2
12/31/2016 I. II. III.
IV. V. Fair Value Level
Assets
Non-current
assets
Restricted cash -- -- -- 206 -- 206 Level 1 Equity securities -- --
5 -- -- 5 Level 3
Current
assets
Bond funds -- -- 11,657 -- -- 11,657 Level 1 Note receivable -- --
922 -- -- 922 Level 1 Cash and cash equivalents -- -- -- 7,849 --
7,849 Level 1
Liabilities
Non-current
liabilities
Long-term debt -- -- -- -- 4,448 3,770 Level 2 Finance lease
obligation -- -- -- -- 369 354 Level 2
Current
liabilities
Bank overdraft -- -- -- -- 224 224 Long-term debt -- -- -- -- 651
644 Level 2 Finance lease obligation -- -- -- -- 422 416 Level 2
The fair value of the Company’s investments in the bond funds
was determined based on the unit prices quoted by the respective
fund management company.
The fair value of long-term debt was determined using discounted
cash flow models based on the relevant forward interest rate yield
curves. The fair value of finance lease obligations was determined
using discounted cash flow models on market interest rates
available to the Company for similar transactions at the relevant
date.
Due to their short maturity and the current low level of
interest rates, the carrying amounts of credit lines and bank
overdrafts approximate fair value.
8. Segment reporting
The following table summarizes segment reporting. The sum of the
amounts of the two segments equals the total for the Group in each
of the periods.
Three months ended September 30, 2017
2016
(€ in thousands)
SYSTEMS SERVICES SYSTEMS
SERVICES Revenues 4,153 3,234 2,549 2,348 Gross
profit 1,584 1,633 1,013 1,002 Gross profit in % 38.1 % 50.5 % 39.7
% 42.7 %
Nine months ended September
30, 2017 2016
(€ in thousands)
SYSTEMS SERVICES SYSTEMS
SERVICES Revenues 8,388 8,682 9,147 6,916 Gross
profit 2,862 4,046 2,818 2,831 Gross profit in % 34.1 % 46.6 % 30.8
% 40.9 %
9. Revenues
Three months ended September 30,
Nine months ended September 30, 2017
2016 2017 2016 (€ in thousands)
(€ in thousands) EMEA 5,660 3,093
12,053 10,800 Germany 1,202 1,303 4,656 4,541 France
1,077 299 2,105 2,383 Great Britain 942 354 1,201 966 Netherlands
50 605 151 654 Sweden 1,167 45 1,367 132 Others 1,222 487 2,573
2,124
Asia Pacific 653 581 1,933
3,087 Americas 1,074 1,223 3,084
2,176 United States 911 1,204 2,742 2,157 Others 163 19 342
19
Total 7,387 4,897 17,070
16,063
10. Subsequent events
Finance Contract
On November 9, 2017, the European Investment Bank (“EIB”) and
the Company entered into a Finance Contract and Synthetic Warrant
Agreement to support the Company’s undertaking of research and
development projects for growth from 2017 to 2020. The contract
provides a credit of EUR 25,000,000 in up to three tranches at the
amounts of EUR 10,000,000, EUR 8,000,000, and EUR 7,000,000,
respectively.
Under the Contract, the Company may borrow under the credit up
to EUR 25,000,000, subject to a limit of 50% of the total research
and development expenditures and manufacturing capital expenditures
from 2017 to 2020. The interest rates for the three tranches are
0%, 7% and 3%, respectively. The Company may borrow the second and
third tranche only if certain revenue and EBITDA levels are met.
The Contract also includes a financial covenant that requires the
Company to meet certain minimum financial ratios from 2019 to 2025.
Under a First Demand Guarantee Agreement the Finance Contract is
guaranteed by the voxeljet USA subsidiary.
In connection with the disbursement of the first Tranche, the
EIB under the Synthetic Warrant Agreement is entitled to receive as
consideration in cash equal to the market value of 195,790 ordinary
shares of the Company (or equivalent number of ADS of the Company)
at the maturity date (5 years after draw down) or when a trigger
event occurs.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171109006606/en/
voxeljet AGInvestors and MediaJohannes
PeschDirector Investor Relations and Business
Developmentjohannes.pesch@voxeljet.deOffice: +49 821 7483172Mobile:
+49 176 45398316
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