Financial result was positive kEUR 93 in the second quarter of 2022, compared to a financial result of positive kEUR 1,378 in the comparative period in 2021. This was mainly related to lower finance income related to the revaluation of derivative financial instruments amounting to kEUR 1,037 in the second quarter of 2022, compared to a finance income of kEUR 1,966 in last year’s same period. In addition we recorded expenses of kEUR 330 related to the change in fair value of bond funds in the second quarter of 2022, compared to kEUR 22 in the comparative period in 2021.

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, holding other parameters constant.

Finance expense included interest from long term debt which amounted to kEUR 583 for the second quarter of 2022, compared to kEUR 537 in the comparative period in 2021.

Net loss for the second quarter of 2022 was kEUR 1,799 or EUR 0.26 per share, as compared to net loss of kEUR 2,504, or EUR 0.41 per share, in the second quarter of 2021.

Six Months Ended June 30, 2022 Results

Revenues for the six months ended June 30, 2022 increased by 25.9% to kEUR 11,331 compared to kEUR 9,003 in the prior year period.

Systems revenues were kEUR 5,028 for the first six months of 2022 compared to kEUR 4,761 for the same period last year. The Company sold three new and one used and refurbished 3D printer during the first six months of 2022, which equals to three 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 related to a significant increase in Systems-related revenues due to higher market demand in our after-sales activites in connection with an increased installed base of our 3D printers. This was partially offset by a slight decrease in revenues from the sale of 3D printers, due to a less favorable product mix. Systems revenues represented 44.4% of total revenue for the six months ended June 30, 2022 compared to 52.9% for the same period in the prior year.

Services revenues were kEUR 6,303 for the six months ended June 30, 2022 compared to kEUR 4,242 for the same period last year. This significant increase of 48.6% was mainly due to higher revenue contributions from our German service center as well as our subsidiary voxeljet America. But also revenue contributions from our Chinese service center improved. Since the beginning of the fiscal year 2022, we see a strong market demand in our Services segment from almost all geographical regions.

Cost of sales for the six months ended June 30, 2022 were kEUR 7,649, an increase of kEUR 1,097 compared to cost of sales of kEUR 6,552 for the same period in 2021.

Gross profit and gross profit margin for the six months ended June 30, 2022 were kEUR 3,682 and 32.5%, respectively, compared to kEUR 2,451 and 27.2% in the prior year period.

Gross profit for our Systems segment decreased to kEUR 1,114 for the six months ended June 30, 2022 from kEUR 1,337 in the same period in 2021. Also gross profit margin for our Systems segment decreased, amounting to 22.2% for the six months ended June 30, 2022 compared to 28.1% for the prior year period. This decrease in gross profit and gross profit margin was mainly related to Systems-related revenues due to the higher valuation allowance for inventories following the Company’s inventory reserve policy amounting to kEUR 334 negative for the six months ended June 30, 2022, compared to kEUR 57 negative in the last year’s same period.

Gross profit for our Services segment increased to kEUR 2,568 for the six months ended June 30, 2022 from kEUR 1,114 in the same period 2021. Also gross profit margin for this segment increased to 40.7% for the first six months of 2022 from 26.3% in the same period in 2021. Both increases were mainly related to significantly higher gross profit as well as gross profit margin contributions from our German operation as well as our subsidiary voxeljet America, as a result of the improved utilization of those service centers. Also regarding our subsidiary voxeljet China gross profit improved. As each service center was able to generate considerably higher revenues in the six months ended June 30, 2022 compared to last year’s same period, the utilization was very cost effective.

Selling expenses were kEUR 3,525 for the six months ended June 30, 2022 compared to kEUR 2,914 in the same period in 2021. The year over year increase is mainly due to higher distribution expenses primarily corresponding to the increase in revenues. Shipping and packaging expenses as a main driver of the selling expenses varies from quarter to quarter depending on quantity and types of products, as well as the destinations where those goods are being delivered.

Administrative expenses decreased by kEUR 287 to kEUR 3,182 for the first six months of 2022 from kEUR 3,469 in the prior year’s period. The decrease was mainly related to slightly lower legal advisor fees related to our stock market listing as well as our communication with financial institutions in connection with funding activities.

R&D expenses decreased to kEUR 3,094 for the six months ended June 30, 2022 from kEUR 3,274 in the same period in 2021, a decrease of kEUR 180. The decrease was mainly due to lower expenses for labor and material, partially offset by higher usage of external services. R&D expenses can vary from quarter to quarter and are usually driven by variations in project types and phases.

Other operating expenses for the six months ended June 30, 2022 were kEUR 414 compared to kEUR 385 in the prior year period. This was mainly due to higher impairment of trade receivables amounting to kEUR 129 for the six months ended June 30, 2022 compared to kEUR 13 for the six months ended June 30, 2021. This was partially offset by lower losses from foreign currency transactions amounting to kEUR 258 for the six months ended June 30, 2022 compared to kEUR 340 in the prior year’s period.

Other operating income was kEUR 3,458 for the six months ended June 30, 2022 compared to kEUR 1,026 in the prior year period. This increase was mainly due to the reclassification of foreign currency translation reserve, which was previously recognized in other comprehensive income on consolidation of voxeljet UK accounts, to profit and loss account on deconsolidation amounting to kEUR 1,475, related to the finalization of the wind-up on February 17, 2022. In addition, we recorded higher gains from foreign exchange transactions amounting to kEUR 1,409 for the six months ended June 30, 2022 compared to kEUR 810 for the comparative period in 2021.

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 3,075 in the six months ended June 30, 2022 compared to an operating loss of kEUR 6,565 in the comparative period in 2021. This was mainly due to a positive net impact from other operating expenses and other operating income amounting to kEUR 3,044 for the six months ended June 30, 2022 compared to a positive net impact amounting to kEUR 641 for the last year’s same period in combination with a significant improvement in gross profit. In addition, administration and R&D expenses decreased. This was partially offset by higher selling expenses.

Financial result was positive kEUR 444 for the six months ended June 30, 2022, compared to a financial result of negative kEUR 4,320 in the comparative period in 2021. This was mainly related to higher finance income related to the revaluation of derivative financial instruments, amounting to kEUR 2,353 for the six months ended June 30, 2022, compared to a finance expense of kEUR 3,222 in the last year’s same period. In addition we recorded expenses of kEUR 773 related to the change in fair value of bond funds for the six months ended June 30, 2022, compared to kEUR 66 in the comparative period in 2021.

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, holding other parameters constant.