Gross profit for our Services segment increased to kEUR 5,433 for the year ended December 31, 2017 from kEUR 3,706 in the same period of 2016. The gross profit margin for this segment increased to 46.7% for the year ended December 31, 2017 from 40.0% for the same period in 2016. In our Services segment, we received higher gross profit contribution from the German operation, our subsidiaries voxeljet America, as well as voxeljet China. Gross profit from voxeljet America improved due to a higher utilization rate of our service center.

Selling expenses were kEUR 6,474 for the year ended December 31, 2017 compared to kEUR 5,312 in the same period in 2016, a increase of kEUR 1,162, or 21.9%. This was related to higher personnel expenses in connection with an increase in headcount.

Administrative expenses increased by kEUR 566, or 12.4% to kEUR 5,129 for the year ended December 31, 2017 from kEUR 4,563 in the prior year period. This increase is mainly due to higher expenses for the preparation of several financing activities.

Research and development expenses slightly decreased to kEUR 5,528 for the year ended December 31, 2017 from kEUR 5,683 in the same period in 2016, a decrease of kEUR 155, or 2.7%.

Other operating expenses for the year ended December 31, 2017 were kEUR 1,844 compared to kEUR 3,881 in the prior year period. This improvement was mainly due to the one-time impairment charges of kEUR 1,423 recorded in the third quarter of 2016. Foreign currency losses amounted to kEUR 1,585 for the year ended December 31, 2017, compared to kEUR 2,077 in the same period in 2016.

The losses from foreign currency transactions were primarily driven by the valuation of the intercompany loans granted by the parent company to our US and UK subsidiaries.

Other operating income was kEUR 1,001 for the year ended December 31, 2017 compared to kEUR 1,417 in the prior year period. The decrease was mainly due to lower gains from foreign currency transactions of kEUR 135 in 2017 compared to kEUR 645 in 2016.

Net loss for the year ended December 31, 2017 was kEUR 8,525, or EUR 2.29 per share, as compared to net loss of kEUR 11,313, or EUR 3.04 per share in the prior year period. This is based on a weighted average number of ordinary shares outstanding of 3.720 million for the year ended December 31, 2017. Compared to the last year’s same period, the number of ordinary shares outstanding was unchanged.

Based on a conversion rate of five ADSs per ordinary share, net loss was EUR 0.46 per ADS for the year ended December 31, 2017 compared to net loss of EUR 0.61 per ADS in the prior year period.

Business Outlook

Our revenue guidance for the first quarter of 2018 is projected to be in the range of kEUR 4,500 to kEUR 5,500. We expect to release our financial results for the first quarter of 2018 after the closing of the financial markets on Thursday, May 17, 2018 and we will host a conference call and webcast to review the results for the quarter on Friday, May 18, 2018 at 8:30 a.m. Eastern Time.

We reaffirm our guidance for the full year ended December 31, 2018.

• Revenue is expected to be in the range of kEUR 28,000 and kEUR 30,000
• Gross margin is expected to be above 40%
• Operating expenses for the full year are expected as follows: SG&A expenses expected to be in the range of kEUR 11,000 and kEUR 12,000 and R&D expenses expected to be between approximately kEUR 5,000 to kEUR 6,000. Depreciation and amortization expense is expected to be between kEUR 3,750 and kEUR 4,000.
• Adjusted EBITDA is expected to be neutral-to-positive in 2018. Adjusted EBITDA excludes the impact of foreign exchange valuations.
• Capital expenditures are projected to be in the range of kEUR 5,500 to kEUR 6,500, which primarily includes ongoing investments in our global subsidiaries.

Our total backlog of 3D printer orders at December 31, 2017 was kEUR 2,770, which represents four 3D printers. This compares to a backlog of kEUR 3,784 representing five 3D printers, at December 31, 2016. As production and delivery of our printers is generally characterized by lead times ranging between three to nine months, the conversion rate of order backlog into revenue is dependent on the equipping process for the respective 3D printer as well as the timing of customers’ requested deliveries.

At December 31, 2017, we had cash and cash equivalents of kEUR 7,569 and held kEUR 14,044 of investments in bond funds, which are included in current financial assets on our consolidated statements of financial position.

Webcast and Conference Call Details

The Company will host a conference call and webcast to review the results for the fourth quarter and full year ended December 31, 2017 on Friday, March 30, 2018 at 8:30 a.m. Eastern Time. Participants from voxeljet will include its Chief Executive Officer, Dr. Ingo Ederer, and its Chief Financial Officer, Rudolf Franz, who will provide a general business update and respond to investor questions.