Research and development (“R&D”) expenses increased to kEUR 1,514 in the second quarter of 2018 from kEUR 1,315 in the second quarter of 2017. The increase of kEUR 199 was mainly due to higher personnel expenses related to a slight increase in headcount in order to support further research and development projects.

Other operating expenses in the second quarter of 2018 were kEUR 132 compared to kEUR 1,001 in the prior year period. This was mainly due to lower losses from foreign currency transaction of kEUR 40 for the second quarter of 2018 compared to kEUR 939 for the second quarter of 2017.

Other operating income was kEUR 440 for the second quarter of 2018 compared to kEUR 85 in the second quarter of 2017. The increase was mainly due to higher gains from foreign currency transactions amounting to kEUR 346 for the second quarter of 2018, an increase of kEUR 365 compared to last year’s second quarter.

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

Operating loss was kEUR 2,203 in the second quarter of 2018, compared to an operating loss of kEUR 2,675 in the comparative period in 2017. The improvement was primarily related to a significantly lower other operating expenses accompanied by higher other operating income partially offset by higher operating expenses, compared to the second quarter of 2017.

Financial result was negative kEUR 538 in the second quarter of 2018, compared to a financial result of positive kEUR 1 in the comparative period in 2017. The significant decrease was mainly related to the revaluation of derivative financial instruments resulting in a finance expense of kEUR 225 as well as interest expense for long-term debt of kEUR 236.

Net loss for the second quarter of 2018 was kEUR 2,748 or EUR 0.74 per share, as compared to net loss of kEUR 2,674, or EUR 0.72 per share, in the second quarter of 2017.

Based on a conversion rate of five American Depositary Shares (“ADSs”) per ordinary share, net loss was at EUR 0.15 per ADS for the second quarter of 2018, compared to a net loss of EUR 0.14 per ADS for the second quarter of 2017. Earnings per share is computed by dividing net income attributable to stockholders of the parent by the weighted-average number of ordinary shares outstanding during the periods. Earnings per ADS is calculated by dividing the above earnings per share by five as each ordinary share represents five ADSs.

Six Months Ended June 30, 2018 Results

Revenues for the six months ended June 30, 2018 increased by 6.5% to kEUR 10,314 compared to kEUR 9,683 in the prior year period.

Systems revenues were kEUR 3,258 for the first six months of 2018 compared to kEUR 4,235 for the same period last year. The Company sold one new and three used and refurbished 3D printers during the first six months of 2018 compared to five new 3D printers in the prior year period. Systems revenues represented 31.6% of total revenue for the six months ended June 30, 2018 compared to 43.7% for the same period a year ago. Systems revenues also include all revenues from consumables, spare parts and maintenance, where we recorded a slight increase compared to the last year’s same period.

Services revenues were kEUR 7,056 for the six months ended June 30, 2018 compared to kEUR 5,448 for the same period last year. This increase of 29.5% was mainly due to a higher revenue contribution from our subsidiary voxeljet America and the German operation. Also our subsidiary voxeljet UK recognized slight increases in Services revenues.

Cost of sales for the six months ended June 30, 2018 was kEUR 5,994, an increase of kEUR 2, over cost of sales of kEUR 5,992 for the same period in 2017.

Gross profit and gross margin for the six months ended June 30, 2018 were kEUR 4,320 and 41.9%, respectively, compared to kEUR 3,691 and 38.1% in the prior year period.

Gross profit for our Systems segment decreased to kEUR 990 for the six months ended June 30, 2018 from kEUR 1,278 in the same period in 2017. This decrease was mainly due to the lower number of printer sales. The gross profit margin for this segment was almost unchanged with 30.4% compared to 30.2% for the prior period.

Gross profit for our Services segment increased to kEUR 3,330 for the six months ended June 30, 2018 from kEUR 2,413 in the same period of 2017. This was mainly related to the increase in revenues. The gross profit margin for this segment increased to 47.2% for the first six months of 2018 from 44.3% in the same period in 2017. Gross profit margin contributions from voxeljet America as well as voxeljet UK significantly improved, while voxeljet UK still generated negative contributions. Gross profit margin at the German operation slightly decreased.

Selling expenses were kEUR 3,394 for the six months ended June 30, 2018 compared to kEUR 2,785 in the same period in 2017, an increase of kEUR 609, or 21.9%. This was mainly due to higher shipping costs related to the increase of Services revenues as well as higher personnel expenses related to an increase in headcount resulting from the build-up of our sales force.