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

Operating loss was kEUR 2,540 for the third quarter of 2022 compared to an operating loss of kEUR 1,488 for the comparative period in 2021. This was mainly due to higher expenses within the function sales and marketing as well as research and development in combination with a decrease in gross profit. The net impact from other operating expenses and other operating income was almost flat for the third quarter of 2022, compared to last year’s same period.

Financial result was negative kEUR 6,167 for the third quarter of 2022, compared to a financial result of positive kEUR 688 in the comparative period in 2021. This was mainly related to higher finance expense due to the write-down of bifurcated embedded derivative financial instruments relating to the performance participation interest for tranche A and tranche B1 loan with EIB amounting to kEUR 4,664 for the third quarter of 2022. The write-down resulted from the early repayment of the Finance Contract with EIB in October 2022, expected already as of September 30, 2022. The early repayment included the full settlement of all tranches and interest for an amount of € 22.0 million.

This compares to a finance income of kEUR 1,280 related to the revaluation of derivative financial instruments in the last year’s same period.

Additionally, we recognized a finance expense of kEUR 907 related to the revision of estimated future cash flows from tranches A and B1 of the EIB loan that led to an adjustment of the carrying amounts of tranches A and B1.

Finance expense related to long term debt amounted to kEUR 1,475 for the third quarter of 2022, including the kEUR 907 adjustment of the carrying amounts of tranches A and B1 as described above. This compares to a finance expense related to long term debt of kEUR 538 for the comparative period in 2021.

Net loss for the third quarter of 2022 was kEUR 8,702 or EUR 1.23 per share, as compared to net loss of kEUR 800, or EUR 0.12 per share, in the third quarter of 2021.

Nine Months Ended September 30, 2022 Results

Revenues for the nine months ended September 30, 2022 increased by 22.4% to kEUR 17,066 compared to kEUR 13,941 in the prior year period.

Systems revenues were kEUR 7,732 for the first nine months of 2022 compared to kEUR 7,258 for the same period last year. The Company sold four new and two used and refurbished 3D printers during the first nine months of 2022, compared to three new and two used and refurbished 3D printers in the prior year period. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. The increase in revenues from our Systems segment was related to a significant increase in Systems-related revenues due to higher market demand in our after-sales activities in connection with an increased installed base of our 3D printers. This was partially offset by a decrease in revenues from the sale of 3D printers, due to a less favorable product mix. Systems revenues represented 45.3% of total revenue for the nine months ended September 30, 2022 compared to 52.1% for the same period in the prior year.

Services revenues were kEUR 9,334 for the nine months ended September 30, 2022 compared to kEUR 6,683 for the same period last year. This significant increase of 39.7% was mainly due to higher revenue contributions from our German service center as well as our subsidiary voxeljet America. But also revenue contributions from our Chinese service center improved. Since the beginning of the fiscal year 2022, we have been seeing a strong market demand in our Services segment from almost all geographical regions.

Cost of sales for the nine months ended September 30, 2022 were kEUR 11,738, an increase of kEUR 2,189 compared to cost of sales of kEUR 9,549 for the same period in 2021.

Gross profit and gross profit margin for the nine months ended September 30, 2022 were kEUR 5,328 and 31.2%, respectively, compared to kEUR 4,392 and 31.5% in the prior year period.

Gross profit for our Systems segment decreased to kEUR 1,765 for the nine months ended September 30, 2022 from kEUR 2,439 in the same period in 2021. Also gross profit margin for our Systems segment decreased, amounting to 22.8% for the nine months ended September 30, 2022 compared to 33.6% for the prior year period. This decrease in gross profit and gross profit margin was mainly related to a less favorable product mix from the sale of 3D printers. In addition gross profit and gross profit margin from Systems-related revenues decreased due to change in the allowance for inventories following the Company’s inventory reserve policy amounting to kEUR 597 negative for the nine months ended September 30, 2022, compared to kEUR 166 negative in the last year’s same period.

Gross profit for our Services segment significantly increased to kEUR 3,563 for the nine months ended September 30, 2022 from kEUR 1,953 in the same period 2021. Also gross profit margin for this segment increased to 38.2% for the first nine months of 2022 from 29.2% in the same period in 2021. Both increases were mainly related to significantly higher gross profit as well as gross profit margin contributions from our German operation as well as our subsidiary voxeljet America, as a result of the improved utilization of those service centers. Also regarding our subsidiary voxeljet China gross profit and gross profit margin improved. As each service center was able to generate considerably higher revenues in the nine months ended September 30, 2022 compared to last year’s same period, the utilization was very cost efficient.

Selling expenses were kEUR 5,540 for the nine months ended September 30, 2022 compared to kEUR 4,385 in the same period in 2021. The year over year increase is mainly due to higher distribution expenses primarily corresponding to the increase in revenues. Shipping and packaging expenses as a main driver of the selling expenses varies from quarter to quarter depending on quantity and types of products, as well as the destinations where those goods are being delivered.

Administrative expenses decreased by kEUR 257 to kEUR 4,748 for the first nine months of 2022 from kEUR 5,005 in the prior year’s period. The decrease was mainly related to slightly lower legal advisor fees related to our stock market listing as well as our communication with financial institutions in connection with funding activities.

R&D expenses slightly decreased to kEUR 4,767 for the nine months ended September 30, 2022 from kEUR 4,772 for the same period in 2021. R&D expenses can vary from quarter to quarter and are usually driven by variations in project types and phases.

Other operating expenses for the nine months ended September 30, 2022 were kEUR 573 compared to kEUR 486 in the prior year period. This increase was mainly due to higher impairment charges for trade receivables amounting to kEUR 215 for the nine months ended September 30, 2022, compared to kEUR 74 for the nine months ended September 30, 2021. This was partially offset by lower losses from foreign currency transactions amounting to kEUR 357 for the nine months ended September 30, 2022 compared to kEUR 402 in the last year’s same period.

Other operating income was kEUR 4,685 for the nine months ended September 30, 2022 compared to kEUR 2,203 in the prior year period. This increase was mainly due to the reclassification of the foreign currency translation reserve, which was previously recognized in other comprehensive income on consolidation of voxeljet UK accounts, to profit and loss accounts on deconsolidation amounting to kEUR 1,475, related to the finalization of the wind-up on February 17, 2022. In addition, we recorded higher gains from foreign exchange transactions amounting to kEUR 2,171 for the nine months ended September 30, 2022 compared to kEUR 1,324 for the comparative period in 2021. Further, other operating income for the nine months ended September 2022 included kEUR 299 in reimbursement of research and development costs, compared to KEUR 0 in the comparative period. This was partially offset by lower income from government grants amounting to kEUR 293 for the nine months ended 2022, compared to kEUR 568 for last year’s same period.

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

Operating loss was kEUR 5,615 in the nine months ended September 30, 2022 compared to an operating loss of kEUR 8,053 in the comparative period in 2021. This was mainly due to a positive net impact from other operating expenses and other operating income amounting to kEUR 4,112 for the nine months ended September 30, 2022 compared to a positive net impact amounting to kEUR 1,717 for the last year’s same period in combination with a significant improvement in gross profit. In addition, administration and R&D expenses decreased. This was partially offset by higher selling expenses.