Financial result was negative kEUR 406 in the fourth quarter of 2022, compared to a positive financial result of kEUR 1,955 in the comparative period in 2021. This was mainly due to the write-down of bifurcated embedded derivative financial instruments relating to the performance participation interest for tranche A and tranche B1 loan with EIB in third quarter of 2022, which resulted in zero finance expense or income from the revaluation of derivative financial instruments in fourth quarter of 2022. The write-down resulted from the early repayment of the Finance Contract with EIB in October 2022. The early repayment included the full settlement of all tranches and interest for an amount of € 22.0 million. This compares to a finance income of kEUR 2,693 related to the revaluation of derivative financial instruments in the last year’s same period. Lower finance expense from long-term debt was recognized amounting to kEUR 205 in fourth quarter of 2022, compared to finance expense of kEUR 552 in the comparative period in 2021. Further, higher finance expense from lease liability was recognized amounting to kEUR 208 in fourth quarter of 2022, compared to finance expense of kEUR 38 in the comparative period in 2021.
Net loss for the fourth quarter of 2022 was kEUR 155 or EUR 0.01 per share, as compared to net profit of kEUR 1,047, or EUR 0.15 per share, in the fourth quarter of 2021.
Year Ended December 31, 2022 Results
Revenues for the year ended December 31, 2022 increased by 12.1% to kEUR 27,832 compared to kEUR 24,826 in the prior year period.
Systems revenues were kEUR 15,828 for the year ended December 31, 2022 compared to kEUR 15,728 in last year’s period. The Company sold twelve new and three used and refurbished 3D printers during the year ended December 31, 2022 compared to ten new and four used and refurbished 3D printers in the prior year period. Revenue from the sale of 3D printers decreased in 2022 compared to last year, due to a less favorable product mix in spite of slightly higher number of transactions. We sold more smaller scale platforms in 2022 as opposed to larger scale platforms in the comparative period in 2021. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. Those Systems-related revenues significantly increased, due to higher market demand in our after-sales activities in connection with an increased installed base of our 3D printers. Systems revenues represented 56.9% of total revenue for the year ended December 31, 2022 compared to 63.4% for the last year’s same period.
Services revenues were kEUR 12,004 for the year ended December 31, 2022 compared to kEUR 9,098 for the same period last year. This was mainly due to higher revenue contributions from our German service center as well as our subsidiary voxeljet America. But also revenue contributions from our Chinese service center improved. Since the beginning of the fiscal year 2022, we have been seeing a strong market demand in our Services segment from almost all geographical regions.
Cost of sales for the year ended December 31, 2022 was kEUR 19,646, which represents increase of kEUR2,770 compared to cost of sales amounting to kEUR 16,876 for the same period in 2021.
Gross profit and gross margin for the year ended December 31, 2022 were kEUR 8,186 and 29.4%, respectively, compared to kEUR 7,950 and 32.0%, respectively, in the prior year period.
Gross profit for our Systems segment decreased to kEUR 3,932 for the year ended December 31, 2022 from kEUR 5,251 in the same period of 2021. Also gross profit margin for this segment decreased to 24.8% compared to 33.4% for the prior period. Those decreases were due to lower gross profit and gross profit margin from the sale of 3D printers related to a less favorable product mix from the sale of 3D printers, while gross profit from Systems-related revenues was almost flat and gross profit margin slightly decreased. We sold more smaller scale platforms in 2022 as opposed to larger scale platforms in the comparative period in 2021 resulting in smaller gross profit and gross profit margin contributions from the sale of 3D printers. In 2022, we recognized an increase in the reserve for slow-moving inventory amounting to kEUR 946 negative, compared to kEUR 851 negative in 2021.
Gross profit for our Services segment increased to kEUR4,254 for the year ended December 31, 2022 from kEUR 2,699 in the same period of 2021. The gross profit margin for this segment increased to 35.4% for the year ended December 31, 2022 from 29.7% for the same period in 2021. Those increases in gross profit as well as gross profit margin were mainly related to significantly higher contributions from our German operation as well as our subsidiary voxeljet America, as a result of the improved utilization of those service centers. Both service centers were able to generate considerably higher revenues in 2022 compared to last year, therefore, the utilization was very cost efficient. This was partially offset by weaker gross profit and gross profit margin contributions from our Chinese service center.
Selling expenses were kEUR 7,975 for the year ended December 31, 2022 compared to kEUR 6,420 in the same period in 2021, representing a significant increase of kEUR1,555, or 24.2%. This was mainly due to higher distribution expenses primarily corresponding to the increase in revenues. Shipping and packaging expenses as a main driver of the selling expenses could vary from quarter to quarter depending on quantity and types of products, as well as the destinations where those goods are being delivered.
Administrative expenses slightly increased by kEUR7 to kEUR 6,584 for the year ended December 31, 2022 from kEUR 6,577 in the prior year period and were therefore almost flat.
Research and development expenses increased to kEUR 6,865 for the year ended December 31, 2022 from kEUR 6,149 in the same period in 2021, a increase of kEUR716, or 11.6%. This was mainly due to higher material expenses as well as higher usage of external services in 2022 compared to last year’s same period 2021.
Other operating expenses for the year ended December 31, 2022 were kEUR 2,591 compared to kEUR 618 in the prior year period. This is mainly due to higher losses from foreign currency translations. Foreign currency losses amounted to kEUR 2,339 for the year ended December 31, 2022, compared to kEUR 460 in the same period in 2021.
Other operating income was kEUR 10,447 for the year ended December 31, 2022 compared to kEUR 2,970 in the prior year period. The increase was mainly due to the gain from the sale and leaseback transaction amounted to kEUR 4,335. In addition, we recorded higher gains from foreign currency transactions amounting to kEUR 2,634 in 2022 compared to kEUR 1,812 in 2021. Furthermore, the reclassification of the foreign currency translation reserve, which was previously recognized in other comprehensive income on consolidation of voxeljet UK accounts, to profit and loss accounts on deconsolidation resulted in an other operating income of kEUR 1,475, related to the finalization of the wind-up on February 17, 2022. Additionally, other operating income for the year ended December 2022 included kEUR 597 in reimbursement of research and development costs, compared to kEUR 110 in the comparative period. Moreover, other operating income included kEUR 877 from the receipt of government grants awarded for research and development project funding for the year ended December 31, 2022 compared to kEUR 617 for the year ended December 31, 2021.
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 US subsidiary.
Operating loss was kEUR 5,382 for the year ended December 31, 2022, compared to an operating loss of kEUR 8,844 in the comparative period in 2021. This was mainly due to a positive net impact of the year over year changes in other operating expenses and other operating income amounting to kEUR 5,504, mainly related to the gain from the sale and leaseback transaction with IntReal International Real Estate Kapitalverwaltungsgesellschaft mbH closed on October 31, 2022, the reclassification of the foreign currency translation reserve to profit and loss accounts on deconsolidation of voxeljet UK accounts and the impact from the foreign currency transactions as mentioned above. In addition, gross profit for 2022 increased by kEUR 236 compared to last year. This was partially offset by higher selling expenses as well as higher research and development expenses with increases of kEUR 1,555 and kEUR 716, respectively. Administrative expenses were almost flat.
