German 3D printer manufacturer voxeljet AG (NYSE:VJET) has announced its financial results for the fourth quarter and full year ended December 31, 2019.
The company’s total revenue for the full year was posted at €24.6 million, a 5.4 percent decrease from FY2018, which was €26 million. However, its Q4 2019 revenue increased by 11.4 percent to €9.6 million, compared to €8.6 million in Q4 2018, making it voxeljet’s record quarter for revenue: “We ended the year 2019 with a new record in quarterly revenue. Systems revenue, which includes 3D printer sales and after sales activities, increased 39 percent year-over-year,” comments Dr. Ingo Ederer, Chief Executive Officer of voxeljet.
The company’s total backlog of 3D printer orders at March 31, 2020 was €8.4 million, an all-time record for the company. “Order backlog for 3D printers is now at its highest level ever as we saw a strong order inflow during the first months of 2020,” adds Dr. Ederer.
“We continue to monitor the impact of COVID-19 closely and will adjust to new situations as they come. At the moment, all our 3D parts production centers and the 3D printer production are operational.”
voxeljet financial results
voxeljet is a manufacturer of high-speed sintering (HSS) and binder jet 3D printers. The company also uses these technologies to provide a manufacturing service within Germany, the U.S., UK, China, and India. In terms of revenue, these two capabilities are reported respectively under “Systems” and “Services.” As well as 3D printer sales, the Systems segment also includes recurring revenue from the sale of consumables, maintenance contracts, upgrades, and other after-sales activities. The Services segment focuses on revenue generated from the printing of on-demand parts for its customers.
For FY2019, voxeljet’s Systems revenue was posted at €13.5 million, compared to €12.2 million in last year’s period, representing a 9.9 percent increase, and 54.7 percent of total revenue. The company sold thirteen new and six used and refurbished 3D printers during the year ended December 31, 2019, compared to fourteen new and five used and refurbished 3D printers in FY2018.
Services revenues were €11.1 million for FY2019, compared to €13.8 million in the same period for 2018. This represents a 19 percent decline.
| Revenues $ millions | FY2019 | FY2018 | Variance € thousands | % |
| Systems | 13,454 | 12,248 | 1,206 | 9.85% |
| Services | 11,148 | 13,761 | -2,613 | -18.99% |
| Total Revenues | 24,602 | 26,009 | -1,407 | -5.41% |
For the fourth quarter of 2019, revenues from voxeljet’s Systems segment increased 38.7 percent to €7.3 million, €5.2 million in last year’s fourth quarter. The company sold six new and five used and refurbished 3D printers in the fourth quarter of 2019, compared to ten new and two used and refurbished 3D printers delivered in Q4 2018.
Conversely, revenues from voxeljet’s Services segment decreased by 32 percent to €2.3 million in the fourth quarter of 2019 from €3.3 million for the same quarter in 2018.
| Revenues $ millions | Q4 2019 | Q4 2018 | Variance € thousands | % |
| Systems | 7,274 | 5,246 | 2,028 | 38.66% |
| Services | 2,277 | 3,328 | -1,051 | -31.58% |
| Total Revenues | 9,551 | 8,574 | 977 | 11.39% |
The positive performance of voxeljet’s Systems segment across Q4 and FY 2019 was attributed to a high number of sales for the company’s larger-scale printers, which generate higher revenues. Additionally, revenues from Systems-related business significantly increased in FY2019, reflecting the higher installed base of 3D printers in the market and the associated growth in after-sales activities.
The decrease in voxeljet’s Services revenue for FY2019 and Q4 2019 was, according to the company, due to lower revenue contributions from the company’s German operation, which reflected the slowdown of the economy in Western Europe mainly related to the automotive industry. Additionally, in the fourth quarter of 2019, the company closed down its service center in the United Kingdom, which led to a significantly lower revenue contribution from voxeljet UK.
Development of VJET X and COVID-19 update
A key focus of the company’s earnings call centered on voxeljet’s VJET X 3D printing system, leveraging its HSS technology. The VJET X is designed to be integrated into conventional metal casting lines, focusing in particular on the automotive industry. News of the system was initially shared in August 2018, and Dr. Ederer confirmed that the company had taken the first order for the system in October 2018. Additionally, the VJET X debuted to the public for the first time at the GIFA international foundry trade fair in Düsseldorf in June 2019.
Providing an update on the development of the system during the earnings call, Dr. Ederer stated: “The development of the new production scale HSS printer is progressing as planned. The most critical step is to make sure to have a stable temperature across the build area. This becomes exponentially more challenging the larger the build area is. We believe we have found a clever solution for this problem and have filed IP accordingly.” The voxeljet CEO also states that the company expects to launch the VJET X towards the end of 2020, however, he explains that it is hard to estimate when the current fine-tuning process will be complete due to the uncertainty of the COVID-19 pandemic.
Thus far, Dr. Ederer explains that voxeljet has been able to mitigate any significant disruption that could have been caused by the COVID-19 pandemic, however, he states that it may continue to disrupt the company’s operations and supply chain. “We continue to monitor the impact of COVID-19 and intend to make the decisions necessary to ensure the safest environment for our employees as well as protecting our business as best as we can under the circumstances,” adds Dr. Ederer.
On its revenue guidance, voxeljet expects full-year 2020 revenue to be between €26 million and €30 million, while revenue for the first half of 2020 is expected to be in the range of €8.5 million and €11.5 million. Ederer concludes stating that the company’s strong increase in order backlog for 3D printers has created significant momentum for voxeljet, while also providing increased visibility. “We continue to monitor the impact of COVID-19 closely and will adjust to new situations as they come. At the moment, all our 3D parts production centers and 3D printer production are operational.”
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Featured image shows Line of voxeljet VX1000 3D printers. Photo via voxeljet.
