Financial result was negative kEUR 381 in the third quarter of 2023, compared to a financial result of negative kEUR 6,167 in the comparative period in 2022. The primary components of the financial result are described below.

In October 2022, the loan granted by the European Investment Bank (the ‘EIB Loan') including all interest was early settled and consequently the loan and the related derivative financial instruments were derecognized, therefore there is no finance income/expense from EIB Loan/derivatives for the third quarter of 2023. The derecognition in October 2022 resulted in the write-down of the bifurcated embedded derivative financial instruments relating to the performance participation interest for tranches A and B1 of the EIB Loan amounting to kEUR 4,664 for the third quarter of 2022. Those derivative financial instruments were revalued on each balance sheet date, with changes in the fair value between reporting periods recorded within the financial result of the consolidated statements of comprehensive loss. An increase in our share price resulted in a finance expense, while a decrease led to a finance income, keeping other parameters constant. Additionally, in the course of the early settlement of the EIB Loan, we recognized a finance expense of kEUR 907 in the third quarter of 2022 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 the two tranches.

This decrease in the above-mentioned interest and fair value expenses was partially offset by increased interest expense on lease liabilities amounting to kEUR 286 for the third quarter of 2023, compared to kEUR 33 for the comparative period in 2022 related to the sale and leaseback transaction regarding voxeljet AG’s properties located in Friedberg, Bavaria, Germany. The transaction closed on October 31, 2022 and the lease term commenced on November 1, 2022.

Financial result also included finance income from revaluation of derivative financial instruments related to the Anzu Note (as described in Note 1) amounting to a finance income of kEUR 7 for the third quarter of 2023, compared to kEUR 0 for the comparative period. For further information, see Note 7.

Net loss for the third quarter of 2023 was kEUR 3,179 or EUR 0.34 per share, as compared to net loss of kEUR 8,702, or EUR 1.23 per share, in the third quarter of 2022.

Nine Months Ended September 30, 2023 Results

Revenues for the nine months ended September 30, 2023 increased by 11.4% to kEUR 19,019 from kEUR 17,066 for the prior year period.

Systems revenues were kEUR 10,570 for the first nine months of 2023 compared to kEUR 7,732 for the same period last year. The Company sold seven new 3D printers during the first nine months of 2023, compared to four new and two used and refurbished 3D printers during 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 mainly related to a significant increase in revenues from the sale of 3D printers due to a higher number of units sold in combination with a more favorable product mix which included more larger scale platforms. In addition, Systems-related revenues increased due to higher market demand in our after-sales activities in connection with an increased installed base of our 3D printers. Systems revenues represented 55.6% of total revenue for the nine months ended September 30, 2023 compared to 45.3% for the same period in the prior year.

Services revenues were kEUR 8,449 for the nine months ended September 30, 2023 compared to kEUR 9,334 for the same period last year. This decrease of 9.5% was mainly due to lower revenue contributions from our German service center and our subsidiary voxeljet China. This was negligibly offset by slightly higher revenue contributions from our American service center, and we see continuing strong market demand in our Services segment from the Americas region. After a particularly strong fiscal year 2022 in the EMEA region, in 2023 we have witnessed a relative decrease in market demand in this region, but a considerable level of demand, in absolute terms, remained for the nine months ended September 30, 2023.

Cost of sales for the nine months ended September 30, 2023 were kEUR 13,597, an increase of kEUR 1,859 compared to cost of sales of kEUR 11,738 for the same period in 2022.

Gross profit and gross profit margin for the nine months ended September 30, 2023 were kEUR 5,422 and 28.5%, respectively, compared to kEUR 5,328 and 31.2%, respectively, for the prior year period.

Gross profit for our Systems segment increased to kEUR 2,804 for the nine months ended September 30, 2023 from kEUR 1,765 for the same period in 2022. This improvement was mainly driven by an increase in revenues. Gross profit margin for our Systems segment also increased, amounting to 26.5% for the nine months ended September 30, 2023 compared to 22.8% for the prior year period, mainly due to a more favorable product mix, especially regarding Systems-related revenues but also related to the sale of 3D printers. The sale of larger scale platforms usually provides higher gross profit (margins) compared to smaller platforms. In addition, we recognized a change in valuation allowance for inventories following the Company’s inventory reserve policy amounting to kEUR 233 negative for the nine months ended September 30, 2023, compared to kEUR 597 negative for last year’s same period.

Gross profit for our Services segment decreased to kEUR 2,618 for the nine months ended September 30, 2023 from kEUR 3,563 in the same period in 2022. Also gross profit margin for this segment decreased to 31.0% for the first nine months of 2023 from 38.2% in the same period in 2022. Both decreases were mainly related to lower gross profit as well as gross profit margin contributions from our German operation and from our Chinese subsidiary, reflecting the lower utilization of both service centers in line with the declined revenues. This was partially offset by our subsidiary voxeljet America, where gross profit as well as gross profit margin improved as a result of a higher utilization of the American service center, reflecting the increase in revenues.

Selling expenses were kEUR 5,822 for the nine months ended September 30, 2023 compared to kEUR 5,540 for the same period in 2022. The year-over-year increase was mainly due to higher personnel expenses as well as higher expenses for trade fairs and exhibitions including travel expenses. This was partially offset by lower distribution expenses in spite of increased revenues. Shipping and packaging expenses as a main driver of selling expenses vary noticeably from quarter to quarter depending on quantities and types of products sold and the destinations where those goods are being delivered.

Administrative expenses increased by kEUR 176 to kEUR 4,924 for the first nine months of 2023 from kEUR 4,748 for the prior year period. This was mainly related to higher personnel expenses.

R&D expenses slightly decreased to kEUR 4,671 for the nine months ended September 30, 2023 from kEUR 4,767 for the same period in 2022, a decrease of kEUR 96. This was mainly due to lower expenses for usage of external services as well as lower personnel and material expenses. This was partially offset by higher maintenance expenses as well as higher depreciation. 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, 2023 were kEUR 795 compared to kEUR 573 for the prior year period. This was mainly due to higher losses from foreign currency transactions amounting to kEUR 722 for the nine months ended September 30, 2023 compared to kEUR 357 for the prior year period.

Other operating income was kEUR 2,214 for the nine months ended September 30, 2023 compared to kEUR 4,685 for the prior year period. This decrease was mainly due to the reclassification of the foreign currency translation reserve in the first quarter of 2022, which was previously recognized in other comprehensive income on consolidation of the accounts of our UK subsidiary voxeljet UK Ltd. (‘voxeljet UK’), to profit and loss account on deconsolidation amounting to kEUR 1,475, related to the finalization of the wind-up of voxeljet UK on February 17, 2022. In addition, we recorded lower gains from foreign exchange transactions amounting to kEUR 619 for the nine months ended September 30, 2023 compared to kEUR 2,171 for the comparative period in 2022. This was partially offset by higher cost reimbursements for R&D expenses amounting to kEUR 830 for the nine months ended September 30, 2023 compared to kEUR 299 for last year’s same period. Furthermore, other operating income included government grants awarded for R&D projects of kEUR 527 (nine months ended September 30, 2022: kEUR 293).