Loss for the fourth quarter of 2013 was kEUR 2,547, or EUR 0.85 per share, as compared to a loss of kEUR 43, or EUR 0.02 per share, in the fourth quarter of 2012.

Full Year 2013 Results

Revenue for the full year ended December 31, 2013 increased by kEUR 2,977, or 34.2%, to kEUR 11,688 from kEUR 8,711 for the full year ended December 31, 2012.

Systems revenue increased 83% to kEUR 6,343 in 2013 from kEUR 3,464 in 2012 as the company sold a total of nine 3D printers in 2013 compared to six 3D printers (excluding four test machines in 2012) in the prior year period. Generally, the 3D printers sold in 2013 were larger systems than in prior years, which also contributed to higher revenue as the larger systems are generally sold at higher prices. Systems revenue represented 54.3% of total revenue in 2013 compared to 39.8% in 2012. Systems revenue also includes all revenue from consumables, spare parts and maintenance.

Revenue from our Services segment increased approximately 2%, to kEUR 5,345 in 2013 compared to kEUR 5,247 in 2012, as we continued to experience strong demand for on demand parts, and continued to be constrained by capacity limitations.

Gross profit increased to kEUR 4,643 in 2013 from kEUR 3,754 in 2012. The gross profit margin decreased to 39.7% in 2013 from 43.1% in 2012. Cost of sales was kEUR 7,045 in 2013. Embedded in cost of sales were expenses of kEUR 340 related to our LTCIP.

Gross profit for our Systems segment increased to kEUR 2,505 in 2013 from kEUR 1,399 in 2012. The gross profit margin decreased to 39.5% in 2013 from 40.4% in 2012. The increase in gross profit was primarily related to higher sales of our 3D printers in 2013 and improved product mix, while the decrease in gross profit margin resulted from a higher cost of sales because of increased personnel expenses related to the LTCIP and increased headcount required to pursue our business growth strategy. Cost of sales related to the LTCIP was kEUR 188.

Gross profit for our Services segment decreased slightly to kEUR 2,138 in 2013 from kEUR 2,355 in 2012. The gross profit margin decreased to 40.0% in 2013 from 44.9% in 2012. Although gross profit remained mostly unchanged, the contribution margin of the Services segment decreased due to higher personnel expenses within cost of sales related to the LTCIP. Cost of sales related to the LTCIP was kEUR 152.

Selling expenses were kEUR 2,640 in 2013 compared to kEUR 1,510 in 2012, an increase of kEUR 1,130. The increase in selling expenses was in line with our efforts to grow our business. Selling expenses related to the LTCIP were kEUR 173.

Administrative expenses were kEUR 1,676 in 2013 compared to kEUR 758 in 2012, an increase of kEUR 918, partially due to increased headcount to support our growth strategy and costs associated with being a publicly traded company. Administrative expenses related to the LTCIP were kEUR 87.

R&D expenses increased to kEUR 2,651 in 2013 from kEUR 1,573 in 2012, an increase of kEUR 1,078. The increase in R&D expenses in 2013 reflects our emphasis on developing new 3D printing technology and improving our existing 3D printing technology. Research and development expenses related to the LTCIP were kEUR 289.

Other operating expenses were kEUR 583 in 2013 compared to kEUR 62 in 2012. Excluding expenses related to the IPO of kEUR 557, other operation expenses were kEUR 26.

Other operating income was kEUR 894 in 2013 compared to kEUR 822 in 2012. Other operating income includes primarily government grants received for ongoing research and development projects and finance lease income. Finance leases consist primarily of borrowings associated with sale and leaseback transactions of 3D printers that we manufacture and use in our Services segment.

Operating profit declined to a loss of kEUR 2,013 in 2013 from a profit of kEUR 673 in 2012. Operating expenses and cost of sales related to the LTCIP and IPO totaled kEUR 889 and kEUR 557, respectively.

Loss for the full year 2013 was kEUR 2,714, or EUR 1.21 per share, as compared to earnings of kEUR 212, or EUR 0.11 per share, in 2012.

At December 31, 2013, the company had cash and equivalents of kEUR 33,459.

Long Term Cash Incentive Program (LTCIP)

On October 2, 2013, we announced that we would be implementing, effective on January 1, 2013, a long-term cash incentive plan (the “LTCIP”) for senior management and other key personnel. An initial grant of the awards under the program was made to participants on October 2, 2013. Personnel expenses incurred in Q4 2013 related to the LTCIP amounted to kEUR 889. Payments of the first tranche under the LTCIP will be made in April 2014.

Successful Completion of IPO

On October 23, 2013, we completed our initial public offering (“IPO”) of 7,475,000 American Depositary Shares (“ADSs”) at a public offering price of USD 13.00 per ADS. Of the 7,475,000 ADSs sold in the public offering, 5,600,000 were sold by the Company and 1,875,000 were sold by its shareholders (the “Selling Shareholders”). Net proceeds from the IPO to the Company were approximately USD 64.5 million, or approximately EUR 46.8 million.