voxeljet AG (NYSE: VJET) reported Q3 EPS of (EUR0.80), versus (EUR1.02) reported last year. Revenue for the quarter came in at EUR4.44 million, versus EUR7.12 million reported last year.

Highlights - Third Quarter 2019 compared to the Third Quarter 2018

• Total revenues for the third quarter decreased 37.7% to kEUR 4,436 from kEUR 7,121
• Gross profit margin decreased to 19.5% from 32.5%
• Systems revenues decreased 56.3% to kEUR 1,636 from kEUR 3,744
• Services revenues decreased 17.1% to kEUR 2,800 from kEUR 3,377
• Restructuring of voxeljet UK
• Lowered full year 2019 revenue guidance to between kEUR 24,000 and kEUR 27,500
• Revenue for the fourth quarter of 2019 is expected to be in the range of kEUR 9,000 to kEUR 12,500.

Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented, “At voxeljet, it is our mission to establish new manufacturing standards. For metal parts, we have introduced VJET X last year and we are working on a project for a leading German automotive OEM. For functional plastic parts, we are thrilled to launch our new HSS-X 1000 3D printer at next week\'s formnext show. At the show in Frankfurt, we will present a prototype version of the HSS-X 1000 for series production of sports equipment, consumer goods & electronics, for mobility & transportation and similar end user markets. We believe this new 3D printer possesses a six times higher build volume than 3D printers from our closest competitors. In short, we continue to innovate and are very excited about the opportunities ahead.”

Business Outlook

Our revenue guidance for the fourth quarter of 2019 is expected to be in the range of kEUR 9,000 to kEUR 12,500.

For gross profit margin, we expect gross profit margin to be above 40% for the fourth quarter of 2019 rather than for the full year and adjusted EBITDA to be neutral-to-positive also for the fourth quarter of 2019 rather than for the second half of the year ending December 31, 2019. Those changes are a result of lower than expected gross profit for the third quarter of 2019. In addition, we are increasing the projected range for R&D expenses for 2019 from the previously disclosed kEUR 5,500 to kEUR 6,000 to kEUR 6,500 to kEUR 7,000 to reflect increased expenses for the development of VJET X. For full year guidance, we expect:

• Full year revenue is expected to be in the range of kEUR 24,000 and kEUR 27,500
• Gross profit margin for the fourth quarter of 2019 is expected to be above 40%
• Operating expenses for the full year are expected as follows: SG&A expenses expected to be in the range of kEUR 12,000 and kEUR 12,500 and R&D expenses projected to be approximately kEUR 6,500 to kEUR 7,000. Depreciation and amortization expense is expected to be between kEUR 3,750 and kEUR 4,000.
• Adjusted EBITDA for the fourth quarter of 2019 is expected to be neutral-to-positive. Adjusted EBITDA is defined as net income (loss), as calculated under IFRS accounting principles before interest (income) expense, provision (benefit) for income taxes, depreciation and amortization, and excluding other operating (income) expense resulting from foreign exchange gains or losses on the intercompany loans granted to the subsidiaries.
• Capital expenditures are projected to be in the range of kEUR 2,000 to kEUR 2,500, which primarily includes ongoing investments in our global subsidiaries.

Our total backlog of 3D printer orders at September 30, 2019 was kEUR 4,867, which represents seven 3D printers. This compares to a backlog of kEUR 3,392 representing six 3D printers, at December 31, 2018. As production and delivery of our printers is generally characterized by lead times ranging between three to nine months, the conversion rate of order backlog into revenue is dependent on the equipping process for the respective 3D printer, as well as the timing of customers’ requested deliveries.

At September 30, 2019, we had cash and cash equivalents of kEUR 6,573 and held kEUR 5,099 of investments in bond funds and one note receivable amounting to kEUR 1,309, which are included in current financial assets on our consolidated statements of financial position.

For earnings history and earnings-related data on voxeljet AG (VJET) click here.