Administrative expenses were kEUR 1,096 for the first quarter of 2016 compared to kEUR 1,619 in the first quarter of 2015. This decrease of kEUR 523 was the result of lower administrative expenses for voxeljet UK due to the restructuring. In addition, consulting fees decreased significantly due to a lower number of ongoing projects.
Research and development (“R&D”) expenses decreased to kEUR 1,307 in the first quarter of 2016 from kEUR 1,560. The decrease of kEUR 253 was mainly due to the restructuring of voxeljet UK, which resulted in the cancellation of research and development activities in UK, partially offset by higher research and development expenses for voxeljet AG due to an increase in headcount of 6 employees compared to the first quarter of 2015.
Other operating expenses in the first quarter of 2016 were kEUR 1,129 compared to kEUR 206 in the prior year period. This was mainly due to expenses from foreign currency transactions amounting to kEUR 759 (Q1 2015: kEUR 100).
Other operating income was kEUR 317 for the first quarter of 2016 compared to kEUR 1,456 in the first quarter of 2015. This was mainly due to gain from foreign currency transactions amounting to kEUR 37 in the first quarter of 2016 compared to kEUR 924 in last year’s same period. In addition, other operating income included the release of deferred income amounting to kEUR 74 in the first quarter of 2016 compared to kEUR 304 in the comparative period.
The increase of losses and the decrease of gains from foreign currency transactions were primarily driven by the valuation of the intercompany loans granted by voxeljet AG to its UK and U.S. subsidiaries. The loans are denominated in GBP and USD, respectively. The financial impact reflects the strengthening of the euro, which has gained against the GBP and USD in the first quarter of 2016 whereas in last year’s same period the effect was in the opposite direction.
Operating loss was kEUR 3,087 in the first quarter of 2016, compared to an operating loss of kEUR 1,466 in the prior year period. Our operating loss in the first quarter of 2016 was a result of lower gross profit contribution from both segments Systems and Services as well as a negative net impact from foreign exchange valuation amounting to kEUR 721 compared to a positive net impact of kEUR 824 in last year’s same period. This was partially offset by lower operating expenses within the functions R&D, sales and marketing as well as administration.
Financial result was negative kEUR 27 in the first quarter of 2016, compared to a financial result of negative kEUR 99 in the prior year period. The decrease in interest expense was mainly driven by the reduced number of finance leases after the restructuring of voxeljet UK in 2015.
Net loss for the first quarter of 2016 was kEUR 3,114, or EUR 0.84 per share, as compared to net loss of kEUR 1,630, or EUR 0.49 per share, in the first quarter of 2015.
Based on a conversion rate of five American Depositary Shares (“ADSs”) per ordinary share, net loss was EUR 0.17 per ADS for the three months ended March 31, 2016 compared to net loss of EUR 0.10 per ADS in the prior year period.
Business Outlook
We reaffirm our revenue guidance in a range of between kEUR 28,000 and kEUR 30,000 for the year ending December 31, 2016.
Our revenue guidance for the second quarter of 2016 is in the range of kEUR 6,500 to kEUR 7,000.
The primary drivers of the Company’s anticipated revenue growth for the year ending December 31, 2016 are expected to be: (1) increased global Systems sales; (2) continued Services revenue growth at its facility in Friedberg, Germany; (3) contribution from voxeljet America, which began operating in January 2015; and (4) offset by a smaller revenue contribution from voxeljet UK after the restructuring in the fourth quarter of 2015.
Our total backlog of 3D printer orders at March 31, 2016 was kEUR 5,407, which represents eight 3D printers. This compares to a backlog of kEUR 5,613, representing nine 3D printers, at December 31, 2015. As production and delivery of our printers varies and is characterized by lead times between three and 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 March 31, 2016, we had cash and cash equivalents of kEUR 1,589 and held kEUR 30,727 of investments in three bond funds and one note receivable which are included in current financial assets on our consolidated statement of financial position.
voxeljet India Pvt. Ltd at Pune
On November 30, 2015, we established our subsidiary voxeljet India
Pvt. Ltd ("voxeljet India") to pursue opportunities in the industrial 3D
printing market in India. voxeljet India is headquartered in the city of
Pune, a large automotive and manufacturing center near Mumbai. Similar
to our already established subsidiaries, we plan to establish a service
center for the on-demand manufacture of 3D-printed molds within the next
18 months. The new Indian subsidiary will also support selling
activities related to the sale of 3D printers in the South Asian market.
The capitalization of voxeljet India shall be INR 20.0 million
(€0.3 million). On January 21, 2016, we injected approximately
two-thirds of the required capital, amounting to INR 13.3 million
(€0.2 million).
