Materialise NV, a leading provider of additive manufacturing software and services, reported revenue increasing by 34.1% from the second quarter of 2017, which ended last June 30th, to €45 million. The impressive growth was driven by strong performances in the Medical segment and in the ACTech business (see further down for more information) within the Manufacturing segment, which was acquired in October 2017.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) increased 90.9% from €2.7 to €5.2 million. The net result was €369,000, or €0.01 per diluted share, compared to losses for €955,000, or €0.02 per diluted share, over the same period last year.
“The past several months have been an especially exciting period for Materialise. We delivered another set of good results for the second quarter, with particularly strong performances from our Materialise Medical segment and the ACTech business we added to our Materialise Manufacturing segment last October,” Executive Chairman Peter Leys commented. “This performance again demonstrates the benefits of our company’s diversified business model. In July, we announced a collaboration with BASF through which this leading chemicals company has invested US$25 million in Materialise to accelerate the advancement of the 3D printing sector through the development of innovative applications and new materials. We expect this collaboration to create significant new business opportunities in new markets over time. We also raised US$44.85 million in gross proceeds through a successful public offering of ADSs representing our shares, which included the full exercise of the underwriters’ over-allotment option to purchase additional ADSs.”
On October 4, 2017, Materialise acquired ACTech, a full-service manufacturer of complex metal parts. The acquired business has increased the scope of Materialise’s Manufacturing segment’s operations and had a significant impact on results of operations for the second quarter of 2018, resulting in increased revenues, operating expenses and net results, among other items. The stock market reacted positively so far – although not as much as may have been expected – to the Q2 results.
Materialise Q2 2018 results
Revenue from Materialise‘s Software segment increased 9.9% to €9.1 million for the second quarter of 2018 from €8.3 million for the same quarter last year. Revenue from Materialise’s Medical segment increased 16.5% to €12.4 million while Materialise Manufacturing segment revenues increased by an impressive 61.8% to €23.3 million. Excluding ACTech, Manufacturing segment revenue decreased by 14.0% to €12.4 million.
Gross profit was €24.8 million, or a healthy 55.0% of total revenue, for the second quarter of 2018. Excluding ACTech, gross profit was €21.1 million, or 62.1% of total revenue. Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased, in the aggregate, 22.9% to €25.7 million. Overall net operating income increased by €613,000 to €1.8 million. Operating result increased to 929,000 from a loss of €295,000 for the same period of the prior year, primarily as a result of the contribution by ACTech.
As detailed in the company’s year-end fiscal 2017 earnings announcement, in fiscal 2018, management expects to report consolidated revenue between €180 and €185 million and Adjusted EBITDA between €22 – €25 million. Management also expects the amount of deferred revenue the company generates from annual licenses and maintenance in 2018 to increase by an amount between €2 and 4 million as compared to 2017.