Second Quarter 2018 Results
Except as otherwise required by the context, references to Materialise, Company, we, us and our are
to Materialise NV and its subsidiaries.
ACTech
On
October 4, 2017, we acquired ACTech, a full-service manufacturer of complex metal parts. As described in more detail below, the acquired business has increased the scope of our Materialise Manufacturing segments operations and had a
significant impact on our results of operations for the second quarter of 2018, resulting in increases to our revenues, operating expenses and net result, among other items.
Second Quarter 2018 Results
Total revenue for the second
quarter of 2018 increased 34.1% (1.5% excluding ACTech) to 45,076 kEUR (34,113 kEUR excluding ACTech) compared to 33,612 kEUR for the second quarter of 2017. Total deferred revenue from annual software sales and maintenance contracts amounted to
21,142 kEUR at the end of the second quarter of 2018 compared to 18,723 kEUR at year end 2017.
Revenue from our Materialise Software segment increased
9.9% to 9,131 kEUR for the second quarter of 2018 from 8,305 kEUR for the same quarter last year.
Revenue from our Materialise Medical segment increased
16.5% to 12,400 kEUR for the second quarter of 2018 compared to 10,646 kEUR for the same period in 2017. Compared to the same quarter in 2017, revenue from our medical software decreased 5.2%. Including deferred revenues from software and
maintenance fees, medical software sales increased 8.9%. Revenue from medical devices and services grew 28.8%.
Revenue from our Materialise Manufacturing
segment increased 61.8% to 23,387 kEUR for the second quarter of 2018 from 14,455 kEUR for the second quarter of 2017. ACTech contributed revenue of 10,958 kEUR. Excluding ACTech, revenue decreased 14.0% to 12,429 kEUR.
Gross profit was 24,788 kEUR, or 55.0% of total revenue, for the second quarter of 2018. Excluding ACTech, gross profit was 21,189 kEUR, or 62.1% of total
revenue, compared to 19,388 kEUR, or 57.7% of total revenue, for the second quarter of 2017.
Research and development (R&D), sales and
marketing (S&M) and general and administrative (G&A) expenses increased, in the aggregate, 22.9% to 25,700 kEUR for the second quarter of 2018 from 20,911 kEUR for the second quarter of 2017. Excluding ACTech,
operating expenses increased, in the aggregate, 10.5% to 23,096 kEUR. Excluding ACTech, R&D expenses increased from 5,131 kEUR to 5,830 kEUR while S&M expenses increased from 10,009 kEUR to 11,038 kEUR and G&A expenses increased from
5,771 kEUR to 6,228 kEUR.
Net other operating income increased by 613 kEUR to 1,841 kEUR compared to 1,228 kEUR for the second quarter of 2017. Excluding
ACTech, net other operating income increased by 557 kEUR. Net other operating income consists primarily of withholding tax exemptions for qualifying researchers, development grants, partial funding of R&D projects, currency exchange results on
purchase and sales transactions, and the depreciation of intangible assets from business combinations.
Operating result increased to 929 kEUR from
(295) kEUR for the same period prior year, primarily as a result of the contribution by ACTech. Excluding ACTech, operating result amounted to (122) kEUR.
Net financial result was (376) kEUR compared to (427) kEUR for the prior-year period. The financial result included (414) kEUR net financial
expenses related to ACTech. The share in loss of joint venture increased to (141) kEUR from (42) kEUR for the same period last year.
The second
quarter of 2018 contained income tax expense of 43 kEUR, of which 206 kEUR was related to ACTech, compared to 191 kEUR in the second quarter of 2017.
As
a result of the above, net profit for the second quarter of 2018 was 369 kEUR or ((62) kEUR excluding ACTech), compared to net loss of (955) KEUR for the same period in 2017. Total comprehensive profit for the second quarter of 2018, which
includes exchange differences on translation of foreign operations, was 422 kEUR compared to a loss of (1,403) kEUR for the same period in 2017.
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