Administrative expenses increased by kEUR 276 to kEUR 2,624 for the first six months of 2018 from kEUR 2,348 in the prior year’s period. The increase was mainly due to higher personnel expenses related to additional headcount.

R&D expenses increased to kEUR 3,111 for the six months ended June 30, 2018 from kEUR 2,812 in the same period in 2017, an increase of kEUR 299, or 10.6%. The increase was mainly due to increased expenditures for personnel and materials to support existing and future projects.

Other operating expenses for the six months ended June 30, 2018 were kEUR 490 compared to kEUR 1,191 in the prior year period. This improvement was mainly due to lower losses from foreign currency transactions amounting to kEUR 331 compared to kEUR 1,078 in the prior year’s period.

Other operating income was kEUR 842 for the six months ended June 30, 2018 compared to kEUR 382 in the prior year period. The decrease was mainly due to higher gains from foreign exchange transactions amounting to kEUR 600 compared to kEUR 35 in comparative period in 2017.

The changes in foreign currency losses and gains were primarily driven by the valuation of the intercompany loans granted by the parent company to our UK and US subsidiaries.

Operating loss was kEUR 4,457 in the six months ended June 30, 2018, compared to an operating loss of kEUR 5,063 in the comparative period in 2017. The improvement was primarily related to a significant improvement in gross profit, lower other operating expenses accompanied by higher other operating income partially offset by higher operating expenses, compared to the six months ended June 30, 2017.

Financial result was positive kEUR 140 for the six months ended June 30, 2018, compared to a financial result of negative kEUR 42 in the comparative period in 2017. The increase was mainly related to the revaluation of derivative financial instruments resulting in a finance income of kEUR 716 partially offset by interest expense for long-term debt of kEUR 467.

Net loss for the six months ended June 30, 2018 was kEUR 4,330, or EUR 1.16 per share, as compared to net loss of kEUR 5,105, or EUR 1.37 per share in the prior year period. This is based on a weighted average number of ordinary shares outstanding of 3.720 million for the first six months ended June 30, 2018. Compared to the last year’s same period, the number of ordinary shares outstanding was unchanged.

Based on a conversion rate of five ADSs per ordinary share, net loss was EUR 0.23 per ADS for the six months ended June 30, 2018 compared to net loss of EUR 0.27 per ADS in the prior year period.

Business Outlook

Our revenue guidance for the third quarter of 2018 is in the range of kEUR 6,000 to kEUR 8,000.

We reaffirm our guidance for the full year ended December 31, 2018

• Full year revenue is expected to be in the range of kEUR 28,000 and kEUR 30,000
• Gross margin 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 11,000 and kEUR 12,000 and R&D expenses projected to be approximately kEUR 5,000 to kEUR 6,000. Depreciation and amortization expense is expected to be between kEUR 3,750 and kEUR 4,000.
• Adjusted EBITDA is expected to be neutral-to-positive in 2018. 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 (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 5,500 to kEUR 6,500, which primarily includes ongoing investments in our global subsidiaries.

Our total backlog of 3D printer orders at June 30, 2018 was kEUR 4,660, which represents seven 3D printers. This compares to a backlog of kEUR 2,770 representing four 3D printers, at December 31, 2017. 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 June 30, 2018, we had cash and cash equivalents of kEUR 3,643 and held kEUR 13,194 of investments in bond funds, which are included in current financial assets on our consolidated statements of financial position.

Webcast and Conference Call Details

The Company will host a conference call and webcast to review the results for the second quarter on Friday, August 17, 2018 at 8:30 a.m. Eastern Time. Participants from voxeljet will include its Chief Executive Officer, Dr. Ingo Ederer, and its Chief Financial Officer, Rudolf Franz, who will provide a general business update and respond to investor questions.