Materialise Reports Fourth Quarter 2016 Results

Exchange Rate

This press release contains translations of certain euro amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from euros to U.S. dollars in this press release were made at a rate of EUR 1.00 to USD 1.0541, the reference rate of the European Central Bank on December 30, 2016.

Conference Call and Webcast

Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the fourth quarter of 2016 today, February 24, 2017, at 8:30 a.m. ET/14:30 CET. Company participants on the call will include Wilfried Vancraen, Founder and Chief Executive Officer; Peter Leys, Executive Chairman; and Johan Albrecht, Chief Financial Officer. A question-and-answer session will follow management’s remarks.

To access the conference call, please dial 844-469-2530 (U.S.) or 765-507-2679 (international), passcode #55886457. The conference call will also be broadcast live over the Internet with an accompanying slide presentation, which can be accessed on the company’s website at http://investors.materialise.com.

A replay of the conference call will be available via telephone beginning approximately one hour after the call ends through Saturday, February 25, 2017. U.S. participants can access the replay by dialing 855-859-2056 and international participants can dial 404-537-3406. The access code for the replay is #55886457. A webcast of the conference call and slide presentation will be archived on the company's website for one year.

About Materialise

Materialise incorporates more than 25 years of 3D printing experience into a range of software solutions and 3D printing services, which Materialise seeks to form the backbone of the 3D printing industry. Materialise’s open and flexible solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build innovative 3D printing applications that aim to make the world a better and healthier place. Headquartered in Belgium, with branches worldwide, Materialise combines one of the largest groups of software developers in the industry with one of the largest 3D printing facilities in the world. For additional information, please visit: www.materialise.com.

Cautionary Statement on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our intentions, beliefs, assumptions, projections, outlook, analyses or current expectations, plans, objectives, strategies and prospects, both financial and business, including statements concerning, among other things, current estimates of fiscal 2017 revenues, deferred revenue from annual licenses and maintenance and Adjusted EBITDA, results of operations, cash needs, capital expenditures, expenses, financial condition, liquidity, prospects, growth and strategies, and the trends and competition that may affect the markets, industry or us. Such statements are subject to known and unknown uncertainties and risks. When used in this press release, the words “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “believe,” “forecast,” “will,” “may,” “could,” “might,” “aim,” “should,” and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon the expectations of management under current assumptions at the time of this press release. These expectations, beliefs and projections are expressed in good faith and the company believes there is a reasonable basis for them. However, the company cannot offer any assurance that our expectations, beliefs and projections will actually be achieved. By their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive dynamics and industry change, and depend on economic circumstances that may or may not occur in the future or may occur on longer or shorter timelines than anticipated. We caution you that forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All of the forward-looking statements are subject to risks and uncertainties that may cause the company's actual results to differ materially from our expectations, including risk factors described in the company's annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on April 28, 2016. There are a number of risks and uncertainties that could cause the company's actual results to differ materially from the forward-looking statements contained in this press release.

The company is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise, unless it has obligations under the federal securities laws to update and disclose material developments related to previously disclosed information.

                   
Consolidated income statements (Unaudited)
 
For the twelve month
For the three months ended period ended 31
31 December December
(in thousands, except EPS) 2016 2016 2015 2016 2015  
U.S.$ euros euros euros euros
 
Revenue 33,180 31,477 28,032 114,477 102,035
Cost of sales (13,554 ) (12,858 ) (11,456 ) (46,706 ) (42,963 )
Gross profit 19,626 18,619 16,576 67,771 59,072
59.2 % 59.1 % 59.2 % 57.9 %
 
Research and development expenses (4,386 ) (4,161 ) (4,742 ) (17,682 ) (18,186 )
Sales and marketing expenses (10,020 ) (9,506 ) (9,340 ) (36,153 ) (36,832 )
General and administrative expenses (5,077 ) (4,816 ) (3,767 ) (20,041 ) (15,045 )
Other operating income 1,875 1,779 2,205 6,212 7,102
Other operating expenses -   -   -   -  

-

 
Operating profit 2,018 1,915 932 107 (3,889 )
 
Financial expenses (790 ) (749 ) (362 ) (2,437 ) (2,470 )
Financial income 1,056 1,002 718 2,039 3,511
Share in loss of joint venture (685 ) (650 ) (153 ) (1,018 ) (401 )
           
Profit (loss) before taxes 1,599 1,518 1,135 (1,309 ) (3,249 )
 
Income taxes (947 ) (898 ) 1,010 (1,710 ) 389
           
Net profit (loss) 652   620   2,145   (3,019 ) (2,860 )
 
Net profit (loss) attributable to:
The owners of the parent 652 620 2,145 (3,019 ) (2,807 )
Non-controlling interest - - - - (53 )
 
Earnings per share attributable to
ordinary owners of the parent
Basic .01 .01 .05 (0.06 ) (0.06 )
Diluted .01 .01 .05 (0.06 ) (0.06 )
 
 
Weighted average basic

47,325

47,325 47,271 47,325 47,224
Weighted average with effect dilution 47,325 47,325 47,779 47,325 47,224
 
             
Consolidated statements of comprehensive income (Unaudited)
     
(in thousands, except EPS)
For the twelve month
For the three months ended period ended 31
31 December December
2016 2016 2015 2016 2015
U.S.$ euros euros euros euros
 
 
Net profit (loss) for the period 652 620 2,145   (3,019 ) (2,860 )
Other comprehensive income (loss)
Exchange differences on translation of foreign operations 69 65 (135 ) (1,834 ) 624  

Other comprehensive income (loss), net of taxes

69 65 (135 ) (1,834 ) 624  
Total comprehensive income (loss) for the period, net of taxes 721 685 2,010   (4,853 ) (2,236 )
 
Total comprehensive income (loss) attributable to:
The owners of the parent 721 685 2,010 (4,853 ) (2,183 )
Non-controlling interest - - - - (53 )
 
 
Consolidated statements of financial position (Unaudited)
     
31 December 31 December
2016 2015*

(in thousand euros)

 

Assets

 

Non-current assets
Goodwill 8,860 9,664
Intangible assets 9,765 9,657
Property, plant & equipment 45,063 38,400
Investments in joint ventures - 1,018
Deferred tax assets 336 1,092
Other financial assets 388   356
Total non-current assets 64,412 60,187
 
Current assets
Inventory 7,870 5,387
Trade receivables 27,479 22,843
Held to maturity investments - -
Other current assets 6,247 4,993
Cash and cash equivalents 55,912   50,726
Total current assets 97,508 83,949
   

Total assets

161,920   144,136
 

Equity and liabilities

 
Equity
Share capital 2,729 2,729
Share premium 79,019 78,098
Consolidated reserves (1,603 ) 1,407
Treasury shares - -
Other comprehensive income (1,112 ) 721
Equity attributable to the owners of the parent 79,033 82,955
Non-controlling interest -   -
Total equity 79,033 82,955
 
Non-current liabilities
Loans & borrowings 28,267 16,607
Deferred tax liabilities 1,325 2,068
Deferred income* 3,588 1,905
Other non-current liabilities 1,873   2,244

Total non-current liabilities

35,053 22,824
 
Current liabilities
Loans & borrowings 5,539 4,482
Trade payables 13,400 9,712
Tax payables 926 255
Deferred income* 17,822 14,696
Other current liabilities 10,147   9,212
Total current liabilities 47,834 38,357
   

Total equity and liabilities

161,920   144,136

 

 


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