Materialise €45 million Q2 revenue driven by strong medical performance

Belgian software and 3D printing service provider Materialise NV (NASDAQ:MTLS) has reported its financial results for the second quarter of 2018.

Headline revenue is reported at €45.07 million, a 34.1% increase on the same period in 2017 which was €33.6 million. The company credits strong performance in its medical segment for part of the rise.

According to executive Chairman Peter Leys, “The past several months have been an especially exciting period” for the company.

“We delivered another set of good results for the second quarter, with particularly strong performances from our Materialise Medical segment and the ACTech business we added to our Materialise Manufacturing segment last October,” adds Leys:

“This performance again demonstrates the benefits of our company’s diversified business model.”

Materialise revenue by division 

Materialise revenue is segmented in three divisions Software, Medical, and Manufacturing. Revenue for the Software division, e.g. sales of Magics platform and related services, was reported at €9.1 million, up from the comparative of  €8.3 million. Medical saw a revenue increase of 14% to €12.4 million, on Q2 2017 revenue of €10.6 million. In the Manufacturing division, revenue was €23.4 million in Q2 2018, an increase of €8.9 million on the same period in 2017.

Revenue by division (in € millions)
  Q2 2017 Q2 2018 € millions %
Materialise Software 8,305 9,131 8,26 9%
Materialise Medical 10,646 12,400 1,754 14%
Materialise Manufacturing 14,455 23,387 8,932 38%
Total 33,406 44,918 11,512 26%

The company also reported €158 thousand of unallocated revenue in Q2 2018, less than the previous period’s unnallocated revenue of €206 thousand.

Gross profit for the three months ended June 30 2018 was €24.8 million, 55% of total revenue, with a net profit of €369 thousand. Comparatively, for period ended June 30 2017, gross profit was €19.4 million, 57.7% of total revenue, with a net loss of €955 thousand.

Research and development costs increased over the period totaling €5.8 million in Q2 2018, up from €5.1 million in Q2 2017.

Recent activity at Materialise

In the second quarter of 2018, Materialise became the first company to be granted FDA clearance for software designed to create 3D printed anatomical models. With global IT service firm HCL Technologies, the company expanded its manufacturing capabilities with a hybrid additive manufacturing/CNC machining service.

As mentioned by Leys, the quarter also demonstrated revenue contributed by metal part casting specialist ACTech after Materialise acquired the company in October 2017. And software revenue was supported by increased third party integration.

Most recently, the company received a $25 million investment from global chemical giant BASF. The long term goal of the two companies is to create a wider choice of materials to increase the adoption of 3D printing technologies.

CT images viewed in Materialise's Mimics software. Image via Materialise.
CT images viewed in Materialise’s Mimics software. Image via Materialise.

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Featured image shows Materialise 3D printer facility in Leuven, Belgium. Photo via Materialise