Selling expenses were kEUR 1,948 for the fourth quarter of 2018 compared to kEUR 2,074 in the fourth quarter of 2017 and therefore were almost unchanged.

Administrative expenses were kEUR 1,469 for the fourth quarter of 2018 compared to kEUR 1,427 in the fourth quarter of 2017 and therefore were almost unchanged. In the fourth quarter of 2018, personnel expenses increased quarter over quarter. This was offset by lower consulting fees. In the fourth quarter of 2018, higher expenses for the preparation of several financing activities occurred.

Research and development (“R&D”) expenses slightly decreased to kEUR 1,563 in the fourth quarter of 2018 from kEUR 1,574 in the fourth quarter of 2017. These expenses are usually driven by individual projects, especially through the consumption of material as well as the demand of external services and may differ on a quarter to quarter comparison.

Other operating expenses in the fourth quarter of 2018 were kEUR 139 compared to kEUR 239 in the prior year period. This was mainly related to lower losses from foreign currency transactions, which were primarily driven by the valuation of the intercompany loans granted by the parent company to our US and UK subsidiary.

Other operating income was kEUR 261 for the fourth quarter of 2018 compared to kEUR 235 in the fourth quarter of 2017. The slight increase was mainly due to higher gains from foreign currency transactions, which were primarily driven by the valuation of the intercompany loans granted by the parent company to our US and UK subsidiary.

Operating loss was kEUR 2,007 in the fourth quarter of 2018, compared to an operating loss of kEUR 2,475 in the comparative period in 2017. The improvement was mainly due to higher gross profit from the Systems segment, partially offset by lower gross profit from the Services segments. Operating expenses in the functions research and development, sales and marketing as well as administration remained almost unchanged.

Financial result was a positive of kEUR 1,711 in the fourth quarter of 2018, compared to a positive financial result of kEUR 253 in the comparative period in 2017. This was mainly due to finance income from the revaluation of the embedded derivative related to the Performance Participation Interest in connection with the first tranche of the loan received by the European Investment Bank.

Net loss for the fourth quarter of 2018 was kEUR 300 or EUR 0.06 per share, as compared to net loss of kEUR 2,222, or EUR 0.62 per share, in the fourth quarter of 2017.

Based on a conversion rate of five American Depositary Shares (“ADSs”) per ordinary share, net loss was EUR 0.01 per ADS for the three months ended December 31, 2018, compared to EUR 0.12 per ADS from the comparative period of 2017.

Year Ended December 31, 2018 Results

Revenues for the year ended December 31, 2018 increased by 12.2% to kEUR 26,009 compared to kEUR 23,178 in the prior year period.

Systems revenues were kEUR 12,248 year ended December 31, 2018 compared to kEUR 11,534 in last year’s period. The Company sold fourteen new and five used and refurbished 3D printers during the year ended December 31, 2018 compared to ten new and five used and refurbished 3D printers in the prior year. The increase in Systems revenues was mainly due to the higher number of 3D printer sales. Revenues from system-related goods and services slightly increased for the year-ended December 31, 2018 compared to last year’s same period. Systems revenues represented 47.1% of total revenue for the year ended December 31, 2018 compared to 49.8% for the last year’s same period.

Services revenues were kEUR 13,761 for the year ended December 31, 2018 compared to kEUR 11,644 for the same period last year. This increase was mainly due to a higher revenue contribution from our subsidiary voxeljet America. The German operation and voxeljet UK also contributed higher revenues within this segment. The increase in revenue at our German service center is due to the robust economy in the European market. The growth in revenue at our American service center and British service center resulted from an increasing market penetration in the respective sales regions which is accompanied by a larger customer base.

Cost of sales for the year ended December 31, 2018 was kEUR 16,864, which represents an increase of kEUR 3,011, or 22% compared to cost of sales amounting to kEUR 13,853 for the same period in 2017.

Gross profit and gross margin for the year ended December 31, 2018 were kEUR 9,145 and 35.2%, respectively, compared to kEUR 9,325 and 40.2%, respectively, in the prior year period.

Gross profit for our Systems segment decreased to kEUR 3,708 for the year ended December 31, 2018 from kEUR 4,258 in the same period of 2017. The gross profit margin for this segment decreased to 30.3% compared to 36.9% for the prior period. This was mainly due to lower gross profit and gross profit margin from 3D printer sales, which was influenced by a less favorable product mix of systems sold in 2018 than in 2017. Gross profit as well as gross profit margin from system related goods and services, including consumables, spare parts and maintenance, remained almost flat.

Gross profit for our Services segment increased to kEUR 5,437 for the year ended December 31, 2018 from kEUR 5,067 in the same period of 2017. This was mainly due to higher revenues. The gross profit margin for this segment decreased to 39.5% for the year ended December 31, 2018 from 43.5% for the same period in 2017. This was mainly related to weaker gross profit contributions from the German service center, as well as the Chinese service center. Gross profit margin for Services decreased at the German service center due to several replacements of printheads for our 3D printers. This was partially offset by improved contributions from voxeljet America and voxeljet UK. The gross margins from these two service centers improved due to a higher utilization rate of their equipment related to an increased number of orders. The higher utilization at our U.S. subsidiary was mainly related to a volume contract which began in July 2018, with total revenue contribution exceeding kEUR 1,000.