Industrial 3D printing process control developer Sigma Labs (NASDAQ:SGLB) has reported its financial results for the second quarter and first half of 2018. For Q2 2018 the company has reported a headline revenue of $98,633, compared to over $290 thousand in the same period in 2017. For the first half of the 2018, total revenue was reported at $202,078, compared to H2 2017 revenue of $405,075.
Though a noticeable hit has been taken to company’s revenue John Rice, Chairman and CEO of Sigma Labs, assures that the reduction is part of the company’s progress from an R&D company through to commercialization.
In a supporting statement with the results, Rice said, “We had an active quarter of strength building as we continued to transform ourselves from an R&D company with a high potential R&D product into a commercialization company with reliable high-performance market-ready products to sell,”
“I am proud of what we have achieved so far in 2018 internally strengthening Sigma’s product, operations, and balance sheet. Now, going forward we must thrust our product effectively into the marketplace.”
Sigma Labs activity
Sigma Labs’ flagship product is the PrintRite3D additive manufacturing quality assurance package combining SENSORPAK hardware and sofware for reading the print bed, with software features: INSPECT, CONTOUR and ANALYTICS. The package is third party independent, and offers layer by layer analysis of 3D printed parts, to asses potential faults, strengths, and areas for process optimization.
With an EOS M290, Sigma Labs also offers PrintRite3D assured direct metal laser sintering (DMLS) metal 3D printing services.
Throughout Q2 2018, which ended June 30, the company completed a private placement financing of $1 million and closed a public offering of $2,390,000. Expressing its sentiments to expand throughout Europe, the company hired its first employee in the continent, and has been granted a patent relating to a “Method and System for Monitoring Additive Manufacturing Processes.”
Summary of Condensed Balance Sheets
The cost of revenue in Q2 2018 was reported at $68,568, with the comparative in Q2 2017 at $111,41,.
Gross profit for Q2 2018 was $30,095, and net loss for the same period was reported at -$988,741. For comparison, in Q2 2017, gross profit was reported at $179,141, with a net loss of -$1,388,804.
Brief Summary of Condensed Balance Sheets
|Q2 2018||Q2 2017||H2 2018||H2 2017|
|Cost of Revenue||68,568||111,412||142,363||185,946|
As hinted by Rice’s statement, operating R&D costs have decelerated in this period, from $131,908 in Q2 2017 to $95,045 in Q2 2018. Total operating expenses for Q2 2018 were reported at $1,422,511 and, for the same period in 2017, operating expenses were $1,108,234.
|Q2 2018||Q2 2017||H2 2018||H2 2017|
|Operating R&D Costs||95,045||131,908||217,022||186,413|
|Total Operating Expenses||1,422,511||1,108,234||2,599,641||2,114,717|
|R&D as % of Total Operating Expenses||7%||12%||8%||9%|
A “mixed year”
This second quarter of 2018 marks a full year since Rice joined Sigma Labs as CEO. In a letter issued to company shareholders, Rice highlights the challenges the company has faced in the past 12 months, including the recruitment of new team members.
“Overall, the past year is certainly one of mixed results, and we hope and believe that we did get the mix right,” comments Rice,” In exiting the R&D business, we caused a reduction in company revenues for the period from which we have not yet emerged. We traded those lost revenues for a major overhaul of the company: reworking our culture, rapidly advancing our technology from its bench R&D characteristics and high potential into a rapidly evolving high performance commercially deployable product.”
Full Sigma Labs Second Quarter 2018 Financial Results can be accessed online here.
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Featured image shows a metal 3D printing test palette. Photo via Sigma Labs on Facebook