Operating loss was kEUR 3,882 in the second quarter of 2021, compared to an operating loss of kEUR 3,957 in the comparative period in 2020. The slight improvement was mainly due to the significant increase in gross profit, partially offset by higher selling, administrative and research and development expenses. The impact of the quarter over quarter changes in other operating expenses and other operating income was almost flat.

Financial result was positive kEUR 1,378 in the second quarter of 2021, compared to a financial result of negative kEUR 1,172 in the comparative period in 2020. This was mainly related to higher finance income related to the revaluation of derivative financial instruments amounting to kEUR 1,966 compared to a finance expense of kEUR 983 in the last year’s same period. The derivative financial instruments are revalued on each balance sheet date, with changes in the fair value between reporting periods recorded within financial result of the consolidated statements of comprehensive loss. An increase in our share price results in a finance expense, while a decrease leads to a finance income. Interest expense included interest from long term debt with other financial institutions which amounted to kEUR 537 for the second quarter of 2021, compared to kEUR 290 in the comparative period in 2020.

Net loss for the second quarter of 2021 was kEUR 2,504 or EUR 0.41 per share, as compared to net loss of kEUR 5,123, or EUR 1.06 per share, in the second quarter of 2020.

Six Months Ended June 30, 2021 Results

Revenues for the six months ended June 30, 2021 increased by 15.4% to kEUR 9,003 compared to kEUR 7,800 in the prior year period.

Systems revenues were kEUR 4,761 for the first six months of 2021 compared to kEUR 3,176 for the same period last year. The Company sold three new and one used and refurbished 3D printer during the first six months of 2021, compared to two new and one used and refurbished 3D printer in the prior year period. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. The increase in revenues from our Systems segment was mainly due to significantly higher revenues from the sale of 3D printers, associated with the increased number of units but also the product mix, as the Company sold more larger scale platforms. In addition, Systems-related revenues increased, which reflects the recovery from the economic slow-down mainly due to the ongoing global pandemic of COVID-19 disease (“the COVID-19 situation”). Currently, we are able to perform installations of 3D printers as well as to offer service visits in most regions of the world, but there are still some constraints and obstacles. Systems revenues represented 52.9% of total revenues for the six months ended June 30, 2021 compared to 40.7% for the same period in the prior year.

Services revenues were kEUR 4,242 for the six months ended June 30, 2021 compared to kEUR 4,624 for the same period last year. This decrease of 8.3% was mainly due to lower revenue contributions from our subsidiaries voxeljet America as well as voxeljet China, still impacted by lower market demand related to the slowdown of the economy caused by the COVID-19 situation during the first half of 2021. Revenue contributions from the German service center was almost on the same level like last year’s same period, due to a strong second quarter of 2021.

Cost of sales for the six months ended June 30, 2021 were kEUR 6,552, an increase of kEUR 922, over cost of sales of kEUR 5,630 for the same period in 2020.

Gross profit and gross profit margin for the six months ended June 30, 2021 were kEUR 2,451 and 27.2%, respectively, compared to kEUR 2,170 and 27.8% in the prior year period.

Gross profit for our Systems segment increased to kEUR 1,337 for the six months ended June 30, 2021 from kEUR 980 in the same period in 2020. This increase was mainly due to the significant increase in revenues of kEUR 1,611, due to higher sales of 3D printers, but also due to higher Systems-related revenues. The gross profit margin for this segment amounted to 28.1% compared to 30.9% for the prior year period. This was mainly due to lower gross profit margin from the sale of 3D printers related to the product mix, partially offset by improved gross profit margins from Systems-related revenues.

Gross profit for our Services segment slightly decreased to kEUR 1,114 for the six months ended June 30, 2021 from kEUR 1,190 in the same period of 2020. The gross profit margin for this segment increased to 26.3% for the first six months of 2021 from 25.7% in the same period in 2020 and was therefore almost flat. In spite of decreased revenues from the Services segment, there were no significant changes in gross profit as well as gross profit margin, due to cost saving measures.

Selling expenses were kEUR 2,914 for the six months ended June 30, 2021 compared to kEUR 2,841 in the same period in 2020. The year over year increase was mainly due to higher distribution expenses corresponding to the increase in revenues. Shipping and packaging expenses as a main driver of the selling expenses could vary from quarter to quarter depending on quantity and types of products, as well as the destinations where those goods are being delivered.

Administrative expenses increased by kEUR 252 to kEUR 3,469 for the first six months of 2021 from kEUR 3,217 in the prior year’s period. This was mainly related to higher legal advisor fees related to our stock market listing as well as our communication to financial institutions in connection with funding activities.

R&D expenses amounted to kEUR 3,274 for the six months ended June 30, 2021 compared to kEUR 3,255 in the same period in 2020, and were therefore almost unchanged.

Other operating expenses for the six months ended June 30, 2021 were kEUR 385 compared to kEUR 1,368 in the prior year period. This was mainly due to lower losses from foreign currency transactions amounting to kEUR 340 for the six months ended June 30, 2021 compared to kEUR 1,301 in the prior year’s period.

Other operating income was kEUR 1,026 for the six months ended June 30, 2021, compared to kEUR 1,035 in the prior year period. In April 2020, voxeljet America received a government grant from the United States Small Business Administration (“SBA”) under the COVID-19 funding program amounting to kEUR 295. The full amount was recognised in profit and loss, in the second quarter of 2020. We recorded significantly higher gains from foreign exchange transactions amounting to kEUR 810 for the six months ended June 30, 2021, compared to kEUR 490 in comparative period in 2020.

The changes in foreign currency gains and losses were primarily driven by the valuation of the intercompany loans granted by the parent company to our US subsidiary.

Operating loss was kEUR 6,565 in the six months ended June 30, 2021, compared to an operating loss of kEUR 7,476 in the comparative period in 2020. The improvement was primarily driven by the net impact from other operating expenses and other operating income amounting to kEUR 641 positive for the six months ended June 30, 2021, compared to kEUR 333 negative for the six months ended June 30, 2020. In addition, gross profit increased by kEUR 281. This was partially offset by higher operating expenses in the functions administration and sales and marketing, while research and development expenses remained almost unchanged.

Financial result was negative kEUR 4,320 for the six months ended June 30, 2021, compared to a financial result of negative kEUR 191 in the comparative period in 2020. This was mainly related to higher finance expense related to the revaluation of derivative financial instruments amounting to kEUR 3,222 compared to a finance income of kEUR 574 in the last year’s same period. The significant revaluation impact for the first half of 2021 was related to the performance participation interest (“PPI”) for tranche A and tranche B1 of the European Investment Bank (the “EIB”) loan in connection with the anti-dilution protection clause. As a result of two capital increases effective January 25, 2021 and February 17, 2021, the number of ordinary shares under the Synthetic Warrant Agreement was increased for tranches A and B1, which resulted in a significant finance expense in the first quarter of 2021. Financial result also consisted of interest expense for long-term debt amounting to kEUR 1,061 in the six months ended June 30, 2021, compared to kEUR 609 for the six months ended June 30, 2020.

Net loss for the six months ended June 30, 2021 was kEUR 10,833, or EUR 1.88 per share, as compared to net loss of kEUR 7,724, or EUR 1.59 per share in the prior year period.