Piper Jaffray analyst, Troy Jensen, reiterated his Overweight rating on Voxeljet AG (NYSE: VJET) shares and increased his price target from $5.50 to $7.30 after the company reported Q4 results that were in-line with expectations and reiterated FY16 guidance.

December quarter revenues of €8.3M increased 19.4% on a Y/ Y basis, which was also in-line with Street expectations (€8.3M). Sales in the fourth quarter were driven by healthy growth in printer sales, as well as strong demand for sand and plastic printed parts. Backlog exiting the quarter consisted of 9 printers with an expected total selling price of €5.6M. Although Q4 top-line was in-line with Street expectations, gross margins were down 12.6 percentage points sequentially to 20.1% as a result of a one time inventory impairment charge. Excluding this onetime charge, gross margin was 33.0% in the quarter. Operating expenses of €4.0 million were also down sequentially (21.6%), which led to EPS of (€0.65) (consensus (€0.72)).

System revenues of €4.9M increased 15.4% Y/Y and represented 59.2% of total sales in the fourth quarter of 2015. The company delivered a total of 9 printers in the quarter, which included 6 new printers and 3 refurbished systems. This compares to delivering 7 new printers one year ago. Product gross margins of 40.9% decreased from 42.5% Y/Y, which was due to lower new system sales and higher overhead costs. VJET reported another quarter of healthy growth in service sales, with revenues increasing 25.6% on a Y/Y basis to €3.4M, and accounted for 40.8% of total sales. VJET’s service offering was once again affected by increased demand at the company’s German facility, but the company saw another solid quarter from the UK site and ramping of the U.S. facility. Service margins decreased from 33.7% to (10.0%) sequentially, mainly driven by a €1.1 million inventory impairment charge.

VJET reaffirmed 2016 guidance and is targeting revenues of €28-30M, which implies 20.6% Y/Y growth to the mid-point.

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Shares of Voxeljet AG closed at $5.92 yesterday.