Research and development expenses decreased to kEUR 6,500 for the year ended December 31, 2020 from kEUR 7,212 in the same period in 2019, a decrease of kEUR 712, or 9.9%. This was mainly due to lower personnel expenses as a result of the restructuring of the German operation initiated in the first quarter of 2020.
Other operating expenses for the year ended December 31, 2020 were kEUR 2,799 compared to kEUR 945 in the prior year period. This is mainly due to higher losses from foreign currency translations. Foreign currency losses amounted to kEUR 2,545 for the year ended December 31, 2020, compared to kEUR 880 in the same period in 2019.
Other operating income was kEUR 1,603 for the year ended December 31, 2020 compared to kEUR 2,143 in the prior year period. The decrease was mainly due to lower gains from foreign currency transactions of kEUR 849 in 2020 compared to kEUR 1,657 in 2019. This was partially offset by a government grant received by voxeljet America in April 2020 from the United States Small Business Administration (“SBA”) under the COVID-19 funding program amounting to kEUR 295. The full amount was recognized in profit and loss, in the second quarter of 2020, as the related costs for which the grant is intended to compensate occurred in this period and we assume that we comply with the conditions of the funding. The assessment of SBA whether we are in compliance with the conditions has not been performed yet.
The changes in foreign currency losses and gains were primarily driven by the valuation of the intercompany loans granted by the parent company to our UK and US subsidiaries.
Operating loss was kEUR 13,164 for the year ended December 31, 2020, compared to an operating loss of kEUR 12,908 in the comparative period in 2019. This was mainly due to a negative net impact of the year over year changes in other operating expenses and other operating income amounting to kEUR 2,394. In addition, gross profit for 2020 decreased by kEUR 421 compared to last year. This was almost fully offset by significant cost savings within each of our functions. Year over year, selling expenses, research and development expenses and administrative expenses declined by kEUR 1,302, kEUR 712 and kEUR 545, respectively.
Financial result was negative kEUR 2,405 for the year ended December 31, 2020, compared to negative kEUR 1,031 in the comparative period in 2019. This was mainly due to higher interest expense for long-term debt which amounted to kEUR 1,602 in 2020, compared to kEUR 993 in 2019. This was mainly related to the fixed interest related to the first portion of the second tranche (tranche B1) of the loan granted by the EIB amounting to kEUR 5,000, which has been drawn down in June 2020. In addition, the impact from the revaluation of derivative financial instruments amounted to negative kEUR 807 for 2020, compared to negative kEUR 106 in 2019, which leads to a year over year change of negative kEUR 701.
Net loss for the year ended December 31, 2020 was kEUR 15,481, or EUR 3.20 per share, as compared to net loss of kEUR 13,978, or EUR 2.89 per share in the prior year period.
Effective August 14, 2020, we changed the ratio of our ADSs to ordinary shares from each ADS representing one-fifth (1/5) of one ordinary share (5:1) to each ADS representing one ordinary share (1:1). Based on a conversion rate of one ADSs per ordinary share, net loss was EUR 3.20 per ADS for the year ended December 31, 2020, compared to net loss of EUR 0.58 per ADS in the prior year period, based on a conversion rate of five ADSs per ordinary share.
Business Outlook
Our revenue guidance for the first quarter of 2021 is projected to be in the range of kEUR 3,750 to kEUR 4,000. We expect to release our financial results for the first quarter of 2021 after the closing of the financial markets on or about Thursday, May 13, 2021 and we will host a conference call and webcast to review the results for the quarter on or about Friday, May 14, 2021 at 8:30 a.m. Eastern Time.
Financial guidance for the full year ended December 31, 2021:
- Revenue is expected to be in the range of kEUR 22,500 and kEUR 27,500
- Gross margin is expected to be above 32.5%
- Operating expenses for the full year are expected as follows: SG&A expenses expected to be in the range of kEUR 11,400 to kEUR 11,900; R&D expenses expected to be between approximately kEUR 6,000 and kEUR 6,250. Depreciation and amortization expense is expected to be between kEUR 3,000 and kEUR 3,250.
- Adjusted EBITDA for the fourth quarter of 2021 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 1,000 to kEUR 1,250, which primarily includes ongoing investments in our global subsidiaries.
Our total backlog of 3D printer orders at December 31, 2020 was kEUR 6,844, which represents nine 3D printers. This compares to a backlog of kEUR 2,792 at December 31, 2019, representing three 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, 2020, we had cash and cash equivalents of kEUR 5,324 and held kEUR 2,984 of investments in bond funds, thereof kEUR 2,000 restricted, which are included in current financial assets on our consolidated statements of financial position.
In June 2020, the Company announced that the EIB and voxeljet further expanded their partnership. The EIB disbursed € 5.0 million of the second tranche (tranche B1) of the loan in June 2020 with a bullet repayment after five years. In addition, the EIB and the Company amended the financial covenants in the Finance Contract to replace the Total Net Financial Debt to EBITDA ratio with the Minimum Cash Covenant. As of June 30, 2020, pursuant to the semi-annual financial testing prescribed by the Finance Contract, as amended, the Company was in compliance with the Minimum Cash Covenant. As of December 31, 2020 the Company was not in compliance with the Minimum Cash Covenant. In March 2021, the Company received a waiver from the EIB for the noncompliance with the Minimum Cash Covenant, pursuant to which (i) the EIB agreed that it will not demand immediate repayment of the outstanding amounts owed and (ii) the EIB and the Company amended the financial covenants in the Finance Contract to clarify the calculation of cash and cash equivalents for determining compliance with the Minimum Cash Covenant.
Webcast and Conference Call Details
The Company will host a conference call and webcast to review the results for the fourth quarter and full year ended December 31, 2020 on Wednesday, March 31, 2021 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 Fourth Quarter and Full Year 2020 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 13717012. The recording will be available for replay through April 7, 2021.
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.on24.com/wcc/r/2947522/C3A53331D0BFB6C30A86EDDC8BCCE19A 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 1.2230 to EUR 1.00, the noon buying rate of the Federal Reserve Bank of New York for the euro on December 31, 2020.
