Voxeljet reported today its financial result for the first quarter of 2016. The German manufacturer of 3D Printers recorded sales of €4.9M in the period, a decrease of 10% from the same period last year. Gross margin was 27.3% against 33.6% in Q1/15. Overall the company experienced a slow start for the year 2016. Nevertheless the company reiterated its guidance for 2016, with revenue’s forecast at 28-30M€, and revenue guidance for the second quarter of 2016 in the range of 6.5 to 7M€.
Share price could move further down
Considering the slow start, investors could question the management guidance and bring further down the share price. The company expects to invest over €10M in 2016, bringing total net cash by end 2016 in the region of €20M. This might not be enough to support the company up to breakeven. Current 3D Printing market is getting more and more competitive with new entrants leaner and very innovative. This will put further pressure on Voxeljet and could limit its capacity to reach breakeven soon.
Overall the company is looking fragile. As we noticed in a previous article short sellers believe that share price could go further down. 52 week low is $3.50, a limit that could be tested again following the poor first quarter results.
Key Financial Data