voxeljet AG (NYSE:VJET) (the “Company”, or “voxeljet”), a
leading provider of high-speed, large-format 3D printers and
on-demand parts services to industrial and commercial customers,
today announced consolidated financial results for the third
quarter ended September 30, 2016.
Highlights — Third Quarter 2016
- Total revenues increased 4.0% to
kEUR 4,897 from kEUR 4,710
- Gross profit margin was 41.1% compared
to 32.7%
- Systems revenues increased 74.5% to
kEUR 2,549 from kEUR 1,461
- Services revenues decreased 27.7% to
kEUR 2,348 from kEUR 3,249
- Full impairment of Goodwill amounting
to kEUR 1,130 due to insolvency of our most significant customer of
voxeljet UK
- Lowered full year 2016 revenue guidance
to between kEUR 22,000 and kEUR 24,000
Dr. Ingo Ederer, Chief Executive Officer of voxeljet,
commented, “We are in the middle of executing on our Vision 2020
and we are making good progress. We focus on speed to market and
lowering our costs to serve our customers more effectively. Our key
initiatives for achieving these objectives include standardization
of our product portfolio as well as optimized internal processes.
Regarding short term business, we continue to operate in a complex
economic environment with lower than anticipated customer adoption
rates. For the mid to long term we are excited about upcoming
opportunities in all markets, especially with our new and improved
processes”.
Third Quarter 2016 Results
Revenues for the third quarter of 2016 increased by 4.0% to
kEUR 4,897 compared to kEUR 4,710 in the third quarter of
2015.
Revenues from our Systems segment, which focuses on the
development, production and sale of 3D printers, increased 74.5% to
kEUR 2,549 in the third quarter of 2016 from kEUR 1,461
in last year’s third quarter. The Company delivered three new
printers in the third quarter of 2016, compared to two new printers
delivered in last year’s third quarter. Systems revenues also
include all revenues from consumables, spare parts and maintenance.
Systems revenues represented 52.1% of total revenues in the third
quarter of 2016 compared to 31.0% in last year’s third quarter.
Revenues from our Services segment, which focuses on the
printing of on-demand parts for our customers, decreased 27.7%, to
kEUR 2,348 in the third quarter of 2016 from kEUR 3,249 in the
comparative period of 2015. This was mainly due to lower revenue
contribution from our subsidiary voxeljet UK Ltd. (“voxeljet UK”),
which was restructured in the fourth quarter of 2015. The revenue
contribution of voxeljet UK was kEUR 268 compared to kEUR
1,047 in last year’s third quarter. Moreover, due to lower market
demand revenue contribution from the German operation (the German
entity) for the third quarter of 2016 decreased by kEUR 447
compared to last year’s same period. This was partially offset by a
higher revenue contribution from our subsidiary voxeljet America
Inc. (“voxeljet America”).
Cost of sales was kEUR 2,882 for the third quarter of 2016
compared to kEUR 3,172 for the third quarter of 2015.
Gross profit was kEUR 2,015 in the third quarter of 2016
compared to kEUR 1,538 in the third quarter of 2015.
Gross profit for our Systems segment increased to kEUR 1,013 in
the third quarter of 2016 from kEUR 442 in the third quarter of
2015. The gross profit margin for this segment increased to 39.7%
in the third quarter of 2016 compared to 30.3% in the third quarter
of 2015. The increase resulted from higher revenues and improved
gross profit margins as we did not record any accruals regarding
the third tranche of the Long Term Cash Incentive Plan (“LTCIP”) as
well as bonus in the current quarter, whereas we recorded accruals
for LTCIP and bonus of kEUR 96 in the comparative period of
2015. In contrast, gross margin contributions from consumables and
service and maintenance were weaker compared to 2015.
Gross profit for our Services segment decreased to kEUR 1,002 in
the third quarter of 2016 from kEUR 1,096 in the third quarter of
2015. The gross profit margin for this segment increased to 42.7%
in the third quarter of 2016 from 33.7% in the third quarter of
2015. This was mainly related to higher gross profit margin
contributions from the German operation whereas gross profit
decreased. The gross profit and gross profit margin of voxeljet
America improved significantly. Gross profit and margin were also
impacted by the fact that we did not record accruals for the LTCIP
as well as bonus in the third quarter of 2016, compared to accruals
of kEUR 78 in the comparative period of 2015. These developments
which increased gross profit were more than offset by negative
gross profit contributions from voxeljet UK due to a lower
utilization ratio.
Selling expenses were kEUR 1,206 for the third quarter of 2016
compared to kEUR 1,788 in the third quarter of 2015. The decrease
of kEUR 582 was the result of lower selling expenses for voxeljet
UK following the restructuring, after which the headcount of our UK
sales force decreased from ten employees in the third quarter of
2015 to two employees in 2016. In 2015 we recorded accruals for
LTCIP and bonus of kEUR 83 compared to no accruals in the current
quarter.
Administrative expenses were kEUR 1,161 for the third quarter of
2016 compared to kEUR 1,317 in the third quarter of 2015. This
decrease of kEUR 156 was primarily the result of the decrease in
LTCIP and bonus related cost.
Research and development (“R&D”) expenses decreased to kEUR
1,487 in the third quarter of 2016 from kEUR 1,685. The
decrease of kEUR 198 was due to the restructuring of voxeljet
UK in the fourth quarter 2015, which resulted in the termination of
research and development activities in UK. Moreover, in the current
quarter we did not record any accruals for the LTCIP and bonus,
whereas we recorded accruals for LTCIP and bonus of kEUR 154
in the comparative period in 2015. This was partially offset by
higher personnel costs in the German operation as the headcount
increased from 37 employees in the third quarter of 2015 to 56
employees in the current quarter.
Other operating expenses in the third quarter of 2016 were kEUR
1,899 compared to kEUR 394 in the prior year period. This was
mainly due to the full impairment of goodwill of kEUR 1,130
relating to our UK operations, the full impairment of trade
receivables from our most significant customer in UK amounting to
kEUR 293, and foreign currency losses amounting to kEUR 442, which
was kEUR 304 in the third quarter of 2015.
Other operating income was kEUR 204 for the third quarter of
2016 compared to kEUR 119 in the third quarter of 2015. The
increase was mainly due to higher gains from foreign currency
transactions.
The increase of losses and gains from foreign currency
transactions was primarily driven by the valuation of the
intercompany loans granted by the parent company to our UK and US
subsidiaries. The loans are denominated in GBP and USD,
respectively. The financial impact reflects the strengthening of
the Euro against the GBP following the Brexit vote and its
weakening against the USD in the third quarter of 2016.
Operating loss was kEUR 3,534 in the third quarter of 2016,
compared to an operating loss of kEUR 3,527 in the comparative
period in 2015. Our operating loss in the third quarter of 2016
includes impairment charges of kEUR 1,423 compared to impairment
charges of kEUR 335 in the comparative period last year and a
net loss from foreign exchange rates amounting to kEUR 524
compared to a net gain of kEUR 271 in the comparative period
in 2015. These negative drivers were offset by higher revenues and
lower operating expenses, mainly due to lower personnel expense for
LTCIP and bonus accruals of kEUR 461.
Financial result was kEUR 1 in the third quarter of 2016,
compared to a financial result of kEUR 129 in the comparative
period in 2015. The decrease results from lower income from
financial assets of kEUR 30 in the third quarter of 2016 compared
to kEUR 151 in the comparative period in 2015. However interest
expense also decreased mainly driven by the lower number of finance
leases in 2016 following the restructuring of voxeljet UK in
2015.
Net loss for the third quarter of 2016 was kEUR 3,533 or
EUR 0.95 per share, as compared to net loss of kEUR 3,397, or
EUR 0.91 per share, in the third quarter of 2015.
Based on a conversion rate of five American Depositary Shares
(“ADSs”) per ordinary share, net loss remained at EUR 0.19 per
ADS for the nine months ended September 30, 2016, unchanged from
the comparative period of 2015.
Nine Months Ended September 30, 2016
Results
Revenues for the nine months ended September 30, 2016
slightly increased by 1.8% to kEUR 16,063 compared to
kEUR 15,783 in the prior year period.
Systems revenues were kEUR 9,147 for the first nine months
of 2016 compared to kEUR 6,211 in last year’s period. The
Company sold nine new and three used and refurbished 3D printers
during the first nine months of 2016 compared to seven new and two
used and refurbished 3D printers in the prior year period. Systems
revenues represented 56.9% of total revenue for the nine months
ended September 30, 2016 compared to 39.4% for the same
period a year ago.
Services revenues were kEUR 6,916 for the nine months ended
September 30, 2016 compared to kEUR 9,572 for the same
period last year. This decrease was mainly due to the lower revenue
contribution from our subsidiary voxeljet UK. Moreover, revenue
contribution from the German operation for the nine months of 2016
was kEUR 827 lower than in the last year’s same period due to lower
market demand.
Cost of sales for the nine months ended
September 30, 2016 was kEUR 10,414, a decrease of kEUR
118, or 1% over cost of sales of kEUR 10,532 for the same period in
2015.
Gross profit and gross margin for the nine months ended
September 30, 2016 were kEUR 5,649 and 35.2%,
respectively, compared to kEUR 5,251 and 33.3% in the prior year
period.
Gross profit for our Systems segment increased to kEUR 2,818 for
the nine months ended September 30, 2016 from
kEUR 1,846 in the same period of 2015. The gross profit margin
for this segment slightly increased to 30.8% compared to 29.7% for
the prior period. This increase resulted mainly from higher gross
profit margin contributions from consumables and service and
maintenance, partially offset by lower gross profit margin
contribution from the printer sales compared to comparative period
2015. Gross profit and margin were also improved by the release of
accruals for the LTCIP as well as bonus amounting to kEUR 93,
compared to an accrual of kEUR 341 in the comparative period of
2015.
Gross profit for our Services segment decreased to kEUR 2,831
for the nine months ended September 30, 2016 from
kEUR 3,405 in the same period of 2015. The gross profit margin
for this segment increased to 40.9% from 35.6%. The gross profit
margin improved as the weak gross margin contributions from
voxeljet UK decreased following the restructuring in October 2015.
Gross profit and margin were also impacted by the release of
accruals for the LTCIP as well as bonus amounting to kEUR 79,
compared to an accrual of kEUR 243 in the comparative period of
2015.
Selling expenses were kEUR 3,674 for the nine months ended
September 30, 2016 compared to kEUR 4,947 in the same
period in 2015, a decrease of kEUR 1,273, or 25.7%. Administrative
expenses decreased by kEUR 670 to kEUR 3,363 for the first nine
months of 2016 from kEUR 4,033 in the prior year period. The
decrease in selling and administrative expenses was mainly driven
by the restructuring of voxeljet UK last year as well as the
release of accruals for LTCIP and bonus of kEUR 150 compared
to expenses of kEUR 477 in 2015. Selling expenses also decreased
due to lower commissions to third-party sales agents, which
declined to kEUR 136 in the first nine months of 2016 compared
to kEUR 578 in the last year’s same period.
R&D expenses decreased to kEUR 3,843 for the nine months
ended September 30, 2016 from kEUR 4,662 in the same
period in 2015, a decrease of kEUR 819, or 17.6%. The decrease in
R&D expenses in the first nine months ended
September 30, 2016 was due to the restructuring of
voxeljet UK, which resulted in the termination of research and
development activities in UK, as well as from the release of
accruals for the LTCIP and bonus of kEUR 156 compared to kEUR
490 charges in 2015. This was partially offset by higher personnel
costs in the German operation as the headcount increased from 37
employees as of September, 30 2015 to 56 employees as of September,
30 2016.
Other operating expenses for the nine months ended
September 30, 2016 were kEUR 3,846 compared to kEUR 391
in the prior year period. This was mainly due to the impairment of
goodwill of kEUR 1,130 related to our UK operations and impairment
of trade receivables from our most significant customer in UK
amounting to kEUR 293, as well as foreign currency losses amounting
to kEUR 1,672 compared to kEUR 150 in the same period in
2015.
The increase of losses and gains from foreign currency
transactions was primarily driven by the valuation of the
intercompany loans granted by the parent company to our UK and US
subsidiaries. The loans are denominated in GBP and USD,
respectively. The financial impact reflects the strengthening of
the Euro against the GBP following the Brexit vote and its
weakening against the USD in the third quarter of 2016.
Other operating income was kEUR 848 for the nine months ended
September 30, 2016 compared to kEUR 1,694 in the prior
year period. The decrease was mainly due to lower gains from
foreign exchange transactions amounting to kEUR 215 compared
to kEUR 674 in comparative period and lower recognition of
deferred income of kEUR 222 compared to kEUR 452 in the
comparative period in 2015.
Net loss for the nine months ended September 30, 2016
was kEUR 8,352, or EUR 2.25 per share, as compared to net loss of
kEUR 7,163, or EUR 1.93 per share in the prior year period.
This is based on a weighted average number of ordinary shares
outstanding of 3.720 million for the first nine months ended
September 30, 2016. Compared to the last year’s same
period, the number of ordinary shares outstanding was
unchanged.
Based on a conversion rate of five ADSs per ordinary share, net
loss was EUR 0.45 per ADS for the nine months ended
September 30, 2016 compared to net loss of EUR 0.39
per ADS in the prior year period.
Business Outlook
We decreased our full year 2016 guidance of revenues from
between kEUR 24,000 and kEUR 25,000 to between kEUR 22,000 and
kEUR 24,000 for the Group.
Our revenue guidance for the fourth quarter of 2016 is in the
range of kEUR 6,000 to kEUR 8,000.
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) expected Services
revenue growth at our 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 and a loss of our most significant customer during
the third quarter of 2016.
Our total backlog of 3D printer orders at September 30, 2016 was
kEUR 5,846, which represents ten 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 ranging between
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 September 30, 2016, we had cash and cash equivalents of
kEUR 7,185 and held kEUR 14,574 of investments in two
bond funds and one note receivable which are included in current
financial assets on our consolidated statements of financial
position.
Webcast and Conference Call Details
The company will host a conference call and webcast to review
the results for the quarter on Friday, November 11, 2016 at 8:30
a.m. Eastern Time. Participants from voxeljet will include our
Chief Executive Officer, Dr. Ingo Ederer, and our 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
Third Quarter 2016 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 13648164. The recording will be
available for replay through November 18, 2016.
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.webcasts.com/starthere.jsp?ei=1114286 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 1.1238 to
EUR 1.00, the noon buying rate of the Federal Reserve Bank of New
York for the euro on September 30, 2016.
About voxeljet
voxeljet is a leading provider of high-speed, large-format 3D
printers and on-demand parts services to industrial and commercial
customers. The Company’s 3D printers employ a powder binding,
additive manufacturing technology to produce parts using various
material sets, which consist of particulate materials and
proprietary chemical binding agents. The Company provides its 3D
printers and on-demand parts services to industrial and commercial
customers serving the automotive, aerospace, film and
entertainment, art and architecture, engineering and consumer
product end markets. For more information, visit
http://www.voxeljet.de/en/.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements
concerning our business, operations and financial performance. Any
statements that are not of historical facts may be deemed to be
forward-looking statements. You can identify these forward-looking
statements by words such as ‘‘believes,’’ ‘‘estimates,’’
‘‘anticipates,’’ ‘‘expects,’’ ‘‘plans,’’ ‘‘intends,’’ ‘‘may,’’
‘‘could,’’ ‘‘might,’’ ‘‘will,’’ ‘‘should,’’ ‘‘aims,’’ or other
similar expressions that convey uncertainty of future events or
outcomes. Forward-looking statements include statements regarding
our intentions, beliefs, assumptions, projections, outlook,
analyses or current expectations concerning, among other things,
our results of operations, financial condition, business outlook,
the industry in which we operate and the trends that may affect the
industry or us. Although we believe that we have a reasonable basis
for each forward-looking statement contained in this press release,
we caution you that forward-looking statements are not guarantees
of future performance. All of our forward-looking statements are
subject to known and unknown risks, uncertainties and other factors
that are in some cases beyond our control and that may cause our
actual results to differ materially from our expectations,
including those risks identified under the caption “Risk Factors”
in the Company’s Annual Report on Form 20-F and in other
reports the Company files with the U.S. Securities and Exchange
Commission, as well as the risk that our revenues may fall short of
the guidance we have provided in this press release. Except as
required by law, the Company undertakes no obligation to publicly
update any forward-looking statements for any reason after the date
of this press release whether as a result of new information,
future events or otherwise.
voxeljet AG
CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
Notes 9/30/2016
12/31/2015
(€ in thousands)
unaudited
Current assets 39,917 46,550 Cash and
cash equivalents 7 7,185 2,086 Financial assets 7 14,574 31,746
Trade receivables 2,904 3,348 Inventories 3 13,239 7,841 Income tax
receivables 8 54 Other assets 2,007 1,475
Non-current
assets 23,015 23,570 Financial assets 7 206 206
Intangible assets 4 827 627 Goodwill 4 — 1,273 Property, plant and
equipment 5 21,930 21,383 Other assets 52 81
Total
assets 62,932 70,120 Notes
9/30/2016 12/31/2015 Current
liabilities 5,188 6,402 Deferred income 412 472
Trade payables 2,088 1,759 Financial liabilities 7 1,182 1,150
Other liabilities and provisions 6 1,506 3,021
Non-current liabilities 3,148 2,249 Deferred
income 205 397 Deferred tax liabilities 1 1 Financial liabilities 7
2,847 1,291 Other liabilities and provisions 6 95 560
Equity 54,596 61,469 Subscribed capital 3,720
3,720 Capital reserves 75,827 75,671 Accumulated deficit (26,016)
(17,684) Accumulated other comprehensive income (loss) 972 (238)
Equity attributable to the owners of the company
54,503 61,469 Non controlling interest
93 -- Total equity and liabilities
62,932 70,120
voxeljet AGCONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS (UNAUDITED)
Three months ended September
30, Nine months ended September 30, Notes
2016 2015 2016
2015 (€ in thousands except share and share data)
Revenues 8, 9 4,897 4,710 16,063 15,783 Cost of sales (2,882)
(3,172) (10,414) (10,532)
Gross profit 8 2,015
1,538 5,649 5,251 Selling expenses (1,206)
(1,788) (3,674) (4,947) Administrative expenses (1,161) (1,317)
(3,363) (4,033) Research and development expenses (1,487) (1,685)
(3,843) (4,662) Other operating expenses (1,899) (394) (3,846)
(391) Other operating income 204 119 848 1,694
Operating
loss (3,534) (3,527) (8,229)
(7,088) Finance expense (8) (53) (135) (203) Finance income
9 182 14 192
Financial result 1 129
(121) (11) Loss before income taxes
(3,533) (3,398) (8,350) (7,099) Income
taxes —
1
(2) (64)
Net loss (3,533) (3,397)
(8,352) (7,163) Other comprehensive income
(loss) 275 52 1,210 (215)
Total comprehensive loss
(3,258) (3,345) (7,142) (7,378)
Loss attributable to: Owner of the Company (3,513) (3,397)
(8,332) (7,163) Non-controlling interests (20) -- (20) --
(3,533) (3,397) (8,352) (7,163)
Total comprehensive loss attributable to: Owner of the
Company (3,238) (3,345) (7,122) (7,378) Non-controlling interests
(20) -- (20) --
(3,258) (3,345) (7,142)
(7,378) Weighted average number of ordinary shares
outstanding 3,720,000 3,720,000 3,720,000 3,720,000 Loss per share
- basic/ diluted (EUR) (0.95) (0.91) (2.25) (1.93)
voxeljet AGCONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY (UNAUDITED)
Subscribe
capital
Capital
reserves
Accumulate
deficit
Accumulated
other
comprehensive
income (loss)
Total
equity
(€ in thousands) Balance at January 1, 2015
3,720 75,671 (8,090) (1) 71,300
Loss for the period — — (7,163) —
(7,163) Net changes in
fair value of available for sale financial assets — — — (205)
(205) Foreign currency translations — — — (10)
(10)
Balance at September 30, 2015 3,720 75,671
(15,253) (216) 63,922
Attributable to the owners of the
company
Subscribed
capital
Capital
reserves
Accumulate
deficit
Accumulated
other
comprehensive
income (loss)
Total
Non
controlling
interest
Total
equity
(€ in thousands) Balance at January 1, 2016
3,720 75,671 (17,684) (238)
61,469 — 61,469 Establishment of subsidiary
with non controlling interest — — — — — 113
113 Loss for the
period — — (8,332) — (8,332) (20)
(8,352) Net changes in
fair value of available for sale financial assets — — — 21 21 —
21 Foreign currency translations — — — 1,189 1,189 —
1,189 Equity-settled share-based payment transaction — 156 —
— 156 —
156 Balance at September 30, 2016
3,720 75,827 (26,016) 972 54,503
93 54,596
voxeljet AGCONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)
Nine months ended September 30, 2016
2015 (€ in thousands) Cash Flow from operating
activities Loss for the period (8,352)
(7,163) Depreciation and amortization 1,878 2,289
Valuation adjustments 1,158 (344) Impairment losses on intangible
assets — 309 Impairment losses on inventories — 26 Equity-settled
share-based payment transaction 256 — Impairment of goodwill 1,130
— Impairment losses on trade receivables 293 — Proceeds from
customer loans 10 836 Changes in deferred income taxes — (213)
Deferred income (389) (281)
Change in working capital
(7,461) 686 Trade and other receivables and current
assets (209) (546) Inventories (5,797) (4,048) Trade payables 329
458 Other liabilities and provisions (1,830) 4,986 Income tax
payable/receivables 46 (164)
Total (11,477)
(3,855) Cash Flow from investing activities
Proceeds from disposal of property, plant and equipment and
intangible assets — 1 Payments to acquire property, plant and
equipment and intangible assets (2,226) (4,744) Net proceeds from
disposal of financial assets 17,218 4,849
Total
14,992 106 Cash Flow from financing
activities Repayment from bank overdrafts and lines of
credit (165) (69) Repayment of sale and leaseback obligation (373)
(695) Proceeds (repayment) of finance lease obligation 26 (107)
Proceeds (repayment) of long-term debt 2,100 (152)
Total
1,588 (1,023) Net increase (decrease) in
cash and cash equivalents 5,103 (4,772)
Cash and cash
equivalents at beginning of period 2,086 8,031
Changes to cash and equivalents due to foreign exchanges rates (4)
334
Cash and cash equivalents at end of period 7,185
3,593 Supplemental Cash Flow Information
Interest paid net 91 24
voxeljet AG
NOTES TO THE INTERIM FINANCIAL
STATEMENTS
1. Preparation of financial statements
Our consolidated interim financial statements include the
accounts of voxeljet AG, which is listed on the New York Stock
Exchange, and its wholly-owned subsidiaries voxeljet America Inc,
voxeljet UK Ltd. and voxeljet India Pvt. Ltd., as well as voxeljet
China Co. Ltd., which are collectively referred to herein as the
‘Group’ or the ‘Company.’
Our consolidated interim financial statements were prepared in
compliance with all applicable measurement and presentation
rules contained in International Financial Reporting Standards
(‘IFRS’) as set forth by the International Accounting Standards
Board (‘IASB’) and Interpretations of the IFRS Interpretations
Committee (‘IFRIC’). The designation IFRS also includes all valid
International Accounting Standards (‘IAS’); and the designation
IFRIC also includes all valid interpretations of the Standing
Interpretations Committee (‘SIC’). Specifically, these financial
statements were prepared in accordance with the disclosure
requirements and the measurement principles for interim financial
reporting purposes specified by IAS 34.
The IASB issued a number of new IFRS standards which are
required to be adopted in annual periods beginning after January 1,
2016.
Standard Effective date
Descriptions IAS 7 01/2017 Amendments Disclosure Initiative
IAS 12 01/2017 Amendments Recognition of Deferred Tax Assets for
Unrealised Losses IFRS 2 01/2018 Amendments Classifications and
Measurement of Share-based Payments Transactions IFRS 4 01/2018
Amendments Applying IFRS 9 Financial Instruments with IFRS 4
Insurance Contracts IFRS 9 01/2018 Financial Instruments IFRS 15
01/2018 Revenue from Contracts with Customers IFRS 16 01/2019
Leases IFRS 10, IAS 28 to be determined Amendment Sale or
Contribution of Assets between Investor and its Associate or Joint
Venture
The Company has not yet determined what impact the new
standards, amendments or interpretations will have on its financial
statements.
The interim financial statements as of and for the nine months
ended September 30, 2016 and 2015 were authorized for issue by the
Management Board on November 10, 2016.
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of
these interim financial statements are set out in the Company’s
financial statements as of December 31, 2015, which can be
found in its Annual Report on Form 20-F that was filed with
the U.S. Securities and Exchange Commission. These policies have
been applied to all financial periods presented.
3. Inventories
9/30/2016 12/31/2015 (€ in
thousands) Raw materials and merchandize 2,718 621 Work in
progress 10,521 6,095 Finished goods — 1,125
Total
13,239 7,841
Within our stocks there are materials which are used for
internal production as well as to serve our customers. As the final
purpose of use is usually not determined at the time of purchase
but at the time of consumption, we therefore decided to classify
all of those materials as raw materials and merchandize rather than
as finished goods.
4. Intangible assets and goodwill
9/30/2016 12/31/2015 (€ in
thousands) Software 497 279 Licenses 162 189 Prepayments made
on intangible assets 168 159
Total 827 627
9/30/2016 12/31/2015 (€ in thousands)
Goodwill — 1,273
On October 07, 2016 voxeljet UK’s most significant customer went
into bankruptcy administration. Considering that development,
voxeljet assessed the recoverability of the assets as of September
30, 2016, which resulted in an full impairment of trade receivables
due from that customer of kEUR 293 and the goodwill for the CGU
related to voxeljet UK.
The carrying amount of the CGU exceeded its recoverable amount
of kEUR 1,471 (or kGBP 1,266) and consequently an impairment
loss of kEUR 1,130 (or kGBP 907) covering the entire balance of
goodwill was recognized in other operating expenses in the
consolidated statements of comprehensive loss.
The recoverable amount of the CGU was based on its value in use.
The value in use was determined by discounting the future cash
flows expected to be generated from the continued use of the
CGU.
The projections of cash flows cover the remainder of the current
year 2016 (forecast) and the financial years 2017 to 2021 (terminal
value). The projected cash flows were estimated taking into account
the cease of operations of the CGU’s most significant customer,
management’s experience in the UK marketplace and from the
Company's other service centers in Germany and the United
States.
The cost of capital (weighted average cost of capital, WACC) and
the terminal value growth rate are other assumptions used in the
estimation of the value in use:
In per cent WACC (pre tax) 15.41% Terminal value
growth rate 1.0%
The parameters of the WACC are based on market observations as
at September 30, 2016 (risk-free rate, spread, market risk premium,
beta factor, leverage) and reflect the specific risks of voxeljet
UK. The terminal value growth rate was determined on the basis of
the expected long term development of prices in the UK and the
relevant market for the CGU’s services.
5. Property, plant and equipment
9/30/2016 12/31/2015 (€ in
thousands) Land, buildings and leasehold improvements 12,025
12,167 Plant and machinery (includes assets under finance lease)
6,356 7,702 Other facilities, factory and office equipment 1,550
1,413 Assets under construction and prepayments made 1,999 101
Total 21,930 21,383 Leased assets
included in Property, Plant and Equipment: 1,450
2,059 Printers 1,204 1,490 Printers leased to customers
under operating lease 153 500 Other factory equipment 93 69
6. Other liabilities and provisions
9/30/2016 12/31/2015 (€ in
thousands) Customer deposits 232 1,300 Liabilities from VAT 155
32 Employee bonus — 664 Accruals for management compensation 84 —
Accruals for vacation and overtime 215 110 Accruals for licenses
136 183 Accruals for LTCIP — 478 Liabilities from payroll 187 216
Others 592 598
Total 1,601 3,581
7. Financial instruments
The fair value of a financial instrument is the price that would
be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement
date.
The fair value hierarchy defines the following levels:
-- Level 1: Quoted prices of the respective financial asset
or financial liability in active markets
-- Level 2: Other directly observable input parameters
which contribute to establishing the fair value based on a
valuation model
-- Level 3: Input parameters not based on observable market
data
Under IAS 39 there are the following categories:
(I) A financial asset or financial liability at fair value
through profit or loss
(II) Held-to-maturity investments
(III) Available-for-sale financial assets
(IV) Loans and receivables
(V) Financial liabilities measured at amortized cost
9/30/2016
I. II. III. IV. V. Fair
Value Level Assets
Non-current assets Restricted cash — — — 206 — 206
Level 1
Current assets Bond funds — — 13,657 — —
13,657 Level 1 Note receivable — — 917 — — 917 Level 1 Cash and
cash equivalents — — — 7,185 — 7,185 Level 1
Liabilities Non-current liabilities
Long-term debt — — — — 2,377 2,176 Level 2 Finance lease obligation
— — — — 470 448 Level 2
Current liabilities Bank
overdraft — — — — 218 218 Long-term debt — — — — 476 472 Level 2
Finance lease obligation — — — — 488 482 Level 2
12/31/2015 I. II. III. IV.
V. Fair Value Level Assets
Non-current assets Restricted cash — — — 206 —
206 Level 1
Current assets Customer loan — — — 10 — 10
Level 2 Bond funds — — 30,661 — — 30,661 Level 1 Note receivable —
— 1,075 — — 1,075 Level 1 Cash and cash equivalents — — — 2,086 —
2,086 Level 1
Liabilities Non-current
liabilities Long-term debt — — — — 545 520 Level 2 Finance
lease obligation — — — — 746 701 Level 2
Current
liabilities Bank overdraft — — — — 384 384 Long-term debt —
— — — 207 206 Level 2 Finance lease obligation — — — — 559 589
Level 2
The fair value of the Company’s investments in the bond funds
was determined based on the unit prices quoted by the respective
fund management company.
The fair value of long-term debt was determined using discounted
cash flow models based on the relevant forward interest rate yield
curves. The fair value of finance lease obligations was determined
using discounted cash flow models on market interest rates
available to the Company for similar transactions at the relevant
date.
Due to their short maturity and the current low level of
interest rates, the carrying amounts of credit lines and
bank overdrafts approximate fair value.
8. Segment reporting
The following table summarizes segment reporting. The sum of the
amounts of the two segments equals the total for the Group in each
of the periods.
Three months ended September 30, 2016
2015 (€ in thousands) SYSTEMS SERVICES
SYSTEMS SERVICES Revenues 2,549 2,348 1,461 3,249
Gross profit 1,013 1,002 442 1,096 Gross profit in % 39.7 %
42.7 % 30.3 % 33.7 %
Nine months ended September 30,
2016 2015 (€ in thousands) SYSTEMS
SERVICES SYSTEMS SERVICES Revenues 9,147 6,916
6,211 9,572 Gross profit 2,818 2,831 1,846 3,405 Gross
profit in % 30.8 % 40.9 % 29.7 % 35.6 %
9. Revenues
The Group’s revenues by geographic region were as follows:
Three months ended September 30,
Nine months ended September 30, 2016 2015
2016 2015 (€ in thousands) (€ in
thousands) EMEA 3,093 3,628 10,800
13,050 Germany 1,303 1,798 4,541 5,696 France 299 204 2,383
638 Netherlands 605 50 654 375 United Kingdom 354 838 966 2,998
Others 532 738 2,256 3,343
Asia Pacific 581
378 3,087 1,516 Americas 1,223
704 2,176 1,217 United States 1,204 704 2,157
1,217 Others 19 — 19 —
Total 4,897 4,710
16,063 15,783
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161110006533/en/
Investors and MediaJohannes PeschManager, Investor
Relations and Business Developmentjohannes.pesch@voxeljet.deOffice:
+49 821 7483172Mobile: +49 176 45398316
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