Administrative expenses were kEUR 1,439 for the first quarter of 2019 compared to kEUR 1,232 in the first quarter of 2018. This was mainly due to an increase in headcount resulting in higher personnel expenses as part of management’s remediation efforts on the material weakness identified in the prior year. In addition, we incurred higher consulting fees as part of our project to expand our Enterprise Resource Planning (“ERP”) system. We have hired additional employees in the IT-Team for the management of SAP ERP system related tasks.

Research and development (“R&D”) expenses increased to kEUR 1,705 in the first quarter of 2019 from kEUR 1,597 in the first quarter of 2018. The increase of kEUR 108 was mainly due to higher personnel expenses as a result of a slight increase in headcount.

Other operating expenses in the first quarter of 2019 were kEUR 13 compared to kEUR 358 in the prior year period. This was mainly due to lower losses from foreign currency transaction for the first quarter of 2019 compared to the first quarter of 2018.

Other operating income was kEUR 978 for the first quarter of 2019 compared to kEUR 402 in the first quarter of 2018. The increase was mainly due to higher gains from foreign currency transactions.

The changes in foreign currency gains and losses 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 1,942 in the first quarter of 2019, compared to an operating loss of kEUR 2,388 in the comparative period in 2018. The improvement was primarily related to a significant increase of other operating income partially offset by a lower gross profit.

Financial result was negative kEUR 858 in the first quarter of 2019, compared to a financial result of positive kEUR 678 in the comparative period in 2018. The significant decrease was mainly driven by the revaluation of the derivative financial instruments in connection with the European Investment Bank loan.

Net loss for the first quarter of 2019 was kEUR 2,788 or EUR 0.57 per share, as compared to net loss of kEUR 1,716, or EUR 0.46 per share, in the first quarter of 2018.

Based on a conversion rate of five American Depositary Shares (“ADSs”) per ordinary share, net loss was at EUR 0.11 per ADS for the first quarter of 2019, compared to a net loss of EUR 0.09 per ADS for the first quarter of 2018. Earnings per share is computed by dividing net income attributable to stockholders of the parent by the weighted-average number of ordinary shares outstanding during the periods. Earnings per ADS is calculated by dividing the above earnings per share by five as each ordinary share represents five ADSs.

Business Outlook

Our revenue guidance for the second quarter of 2019 is expected to be in the range of kEUR 5,000 to kEUR 5,250.

We reaffirm our guidance for the full year ending December 31, 2019:

• Full year revenue is expected to be in the range of kEUR 27,000 to kEUR 30,000
• Gross margin is expected to be above 40%
• Operating expenses for the full year are expected as follows: selling and administrative expenses are expected to be in the range of kEUR 12,000 to kEUR 12,500 and R&D expenses are projected to be between approximately kEUR 5,500 and kEUR 6,000. Depreciation and amortization expense is expected to be between kEUR 3,750 and kEUR 4,000.
• Adjusted EBITDA for the second half of the year ending December 31, 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 March 31, 2019 was kEUR 3,422, which represents six 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 March 31, 2019, we had cash and cash equivalents of kEUR 8,482 and held kEUR 8,924 of investments in bond funds and kEUR 1,253 in one note receivable, 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 first quarter on Friday, May 17, 2019 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.