Financial Data and Key Metrics - Revenue for Q2 2023 increased by 2% to EUR6.8 million from EUR6.7 million in Q2 2022, setting a new record for Q2 revenue [41][47] - Gross profit margin slightly decreased to 27.1% in Q2 2023 from 31.3% in Q2 2022 [47] - Net loss for Q2 2023 was EUR3.6 million or EUR0.40 per ADS, compared to a net loss of EUR1.8 million or EUR0.26 in Q2 2022 [21] - Order backlog for 3D printers increased by 23% to EUR10.2 million at the end of Q2 2023 from EUR8.3 million in Q2 2022 [43] Business Segment Performance - Systems segment revenue increased by 11.5% to EUR4 million in Q2 2023 from EUR3.6 million in Q2 2022, driven by the sale of three new printers [18][42] - Services segment revenue decreased by 8.7% to EUR2.8 million in Q2 2023 from EUR3.1 million in Q2 2022, with gross profit margin declining to 33.3% from 39.7% [48] - US subsidiary achieved the highest on-demand printing revenue in over three years, while German and Chinese service centers saw slightly lower revenues compared to Q2 2022 [8][34] Market and Geographic Performance - The company targets an even distribution of revenue across Europe, the US, and Asia to hedge against local risks [43] - The US market performed strongly, with the US subsidiary achieving record on-demand printing revenue [8] - China's Systems business is robust and increasing, while the Services segment in China faces challenges due to post-COVID economic issues [50][62] Strategic Direction and Industry Competition - The company differentiates itself through build size, material diversity, and speed, offering a complete set of industrial 3D printers [5] - The company is focusing on indirect metal printing, combining 3D printing with conventional manufacturing for high economies of scale and no size limitations [6] - Partnerships with major players like BMW and GE Renewable Energy are driving the company's position in high-volume production [12][32][40] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the future, citing record revenue and order backlog for Q2 2023 [11][41] - The company expects Q3 2023 revenue to be in the range of EUR4.75 million to EUR7 million, with full-year guidance unchanged [3] - The company is well-positioned for profitable growth, with strong capacity utilization and order inflow [46][68] Other Important Information - Selling expenses increased to EUR2.1 million in Q2 2023, primarily due to personnel and distribution costs [19] - R&D expenses decreased to EUR1.5 million in Q2 2023 from EUR1.7 million in Q2 2022, driven by lower personnel and external service costs [20] - Administrative expenses increased to EUR1.6 million in Q2 2023 from EUR1.5 million in Q2 2022, with significant spending on auditing and legal fees [35] Q&A Session Summary Question: Can you provide more details on the decline in Services segment revenue and the challenges faced? - The German service center is operating at capacity limits, while the Chinese service center is recovering from post-COVID issues but faces economic challenges [50] - The Systems business in China is robust and increasing, with a positive outlook for the year [62] Question: What is the mix of the order backlog, and are lead times steady? - The order backlog is trending towards larger printers, and lead times are back to normal, ranging between three to nine months [64] Question: How is the company managing its financial debt? - The company has only EUR3 million in financial debt, maturing in early 2028, which is favorable compared to unencumbered current assets of around EUR31 million [57]
voxeljet(VJET) - 2023 Q2 - Earnings Call Transcript