Research and development (“R&D”) expenses increased to kEUR 831 in the second quarter of 2014 from kEUR 490 in the prior year period, as we continued to invest heavily in R&D with a number of active projects in various stages of development.
Our operating expenses for the second quarter of 2014 were affected by the LTCIP. Selling expenses, administrative expenses and R&D expenses related to the LTCIP were kEUR 35, kEUR 18 and kEUR 48, respectively.
Other operating expenses in the second quarter of 2014 were kEUR 8, substantially all of which reflect costs related to our follow-on public offering.
Other operating income was kEUR 397 for the second quarter of 2014 compared to kEUR 253 in the second quarter 2013. The increase was mainly due to the release of deferred income.
Operating loss was kEUR 1,379 in the second quarter of 2014, compared to an operating loss of kEUR 562 in the prior year period. Operating expenses increased in the second quarter of 2014 due in part to increased headcount related to the pursuit of our growth strategy and costs related to being a publicly-traded company, including compensation expenses related to the LTCIP of kEUR 156.
Total loss for the second quarter of 2014 was kEUR 1,405, or EUR 0.38 per share, as compared to total loss of kEUR 478, or EUR 0.24 per share, in the second quarter of 2013.
Six Months Ended June 30, 2014 Results
Revenues for the six months ended June 30, 2014 increased by 22.1% to kEUR 5,469 compared to kEUR 4,478 in the prior year period.
Systems revenues were kEUR 2,546 for the first six months of 2014 compared to kEUR 2,049 in last year’s period. The Company sold four new 3D printers in the first six months of 2014 compared to three 3D printers (two new and one used) printers in the prior year period. Systems revenues represented 46.6% of total revenue for the six months ended June 30, 2014 compared to 45.8% for the same period a year ago. Services revenues were kEUR 2,923 for the six months ended June 30, 2014 compared to kEUR 2,429 for the same period last year.
Cost of sales for the six months ended June 30, 2014 was kEUR 3,530, an increase of kEUR 565, or 19.1%, over cost of sales of kEUR 2,965 for the same period in 2013. For the six months ended June 30, 2014, the cost of sales related to the LTCIP was kEUR 112.
Gross profit and gross margin for the six months ended June 30, 2014 were kEUR 1,939 and 35.4%, respectively, compared to kEUR 1,513 and 33.8% in the prior year period.
Gross profit for our Systems segment increased to kEUR 691 for the six months ended June 30, 2014 from kEUR 609 in the same period of 2013. The gross profit margin for this segment decreased to 27.1% compared to 29.7% for the prior period primarily due to increased headcount costs as we pursue our growth strategy. In the first half of 2014, cost of sales related to the LTCIP was kEUR 64.
Gross profit for our Services segment increased to kEUR 1,248 for the six months ended June 30, 2014 from kEUR 904 in the same period of 2013. The gross profit margin for this segment increased to 42.7% from 37.2%. The increase in gross margin was primarily related to higher revenues resulting from increased capacity and a favorable product mix in the first half of 2014 compared to the same period in 2013. In the first half of 2014, cost of sales related to the LTCIP was kEUR 48.
Selling expenses were kEUR 1,538 for the six months ended June 30, 2014 compared to kEUR 829 in the same period in 2013, an increase of kEUR 709, or 85.5%. Administrative expenses increased by kEUR 1,090, to kEUR 1,566 for the first six months of 2014 from kEUR 476 in the prior year period. The increases in selling and administrative expenses were in line with our efforts to grow our business. R&D expenses increased to kEUR 1,679 for the six months ended June 30, 2014 from kEUR 921 in the same period in 2013, an increase of kEUR 758, or 82.3%. The increase in R&D expenses in the first six months of 2014 reflects our emphasis on developing new 3D printing technology and improving our existing 3D printing technology.
Our operating expenses for the six month months ended June 30, 2014 were affected by the LTCIP. Selling expenses, administrative expenses and R&D expenses related to the LTCIP were kEUR 70, kEUR 35 and kEUR 95, respectively.
Other operating expenses for the six months ended June 30, 2014 were kEUR 86 compared to kEUR 170 in the prior year period.
Other operating income was kEUR 948 for the six months ended June 30, 2014 compared to kEUR 530 in the prior year period. The increase was mainly due to the recognition of kEUR 401 of deferred income as a result of the early termination of three sale and leaseback transactions.
Total loss for the six months ended June 30, 2014 was kEUR 2,116, or EUR 0.62 per share, as compared to total loss of kEUR 376, or EUR 0.19 per share, in the prior year period.
