The most positive news to come out of the voxeljet fiscal 2019 report, which closed last December 31st, is that revenues for the fourth quarter of 2019 increased by 11.4% to 9.5 million euro, compared to 8.5 million euro in the fourth quarter of 2018. This is a record result and it is due primarily to an increase in hardware sales (which is good for a hardware company). The systems segment, which focuses on the development, production and sale of 3D printers, increased 38.7% to 7.2 million euros for the last quarter of 2019 (up from 5.4 million euros during the same period in the year before).
Overall unit sales are actually down by one, as the company sold six new and five used and refurbished 3D printers in the fourth quarter of 2019, compared to ten new and two used and refurbished 3D printers delivered in last year’s fourth quarter. However, in the fourth quarter of 2019, voxeljet sold a higher number of larger-scale printers which generate higher revenues. Systems revenues also include all revenues from consumables, spare parts and maintenance. Those systems-related revenues recorded a slight decrease in the fourth quarter of 2019 compared to last year’s same period. Systems revenues represented 76.2% of total revenues in the fourth quarter of 2019 compared to 61.2% in last year’s fourth quarter.
This is where the bad news starts (and has led voxeljet to risk being delisted from the NYSE), as overall fiscal year revenues, for the year ended December 31, 2019, decreased by 5.4% to 24 million euros compared to 26 million euros in the prior-year period. Systems revenues were up and the company sold thirteen new and six used and refurbished 3D printers during the year ended December 31, 2019. Revenues from systems-related business significantly increased, reflecting the higher installed base of 3D printers in the market and the associated growth in aftersales activities. Systems revenues represented 54.7% of total revenue for the year ended December 31, 2019, compared to 47.1% for the last year’s same period.
Services revenues, on the other hand, were down mainly due to a significant decrease in revenue contribution from the German operation, reflecting the slowdown of the economy in Western Europe mainly related to the automotive industry (and that was prior to COVID-19). Revenue contribution from voxeljet America was almost flat, while voxeljet UK contributed slightly lower revenues. The overall decline in the consolidated revenues was partially offset by an increase in revenue contributions from voxeljet China. This increase from the Chinese service center was mainly related to growing market penetration in the Asian sales region, which is accompanied by a larger customer base. And this may be one of the best news for the future of voxeljet.
The net loss for the year ended December 31, 2019, was substantial: 14.2 million euros, as compared to net loss of 8.8 million euros in the prior year. Nevertheless, voxeljet’s guidance for 2020 is generally positive: the company expects revenue in the range of 26 to 30 million euros with gross margin is expected to be above 40%, and EBITDA losses reduced to zero or even a small profit.