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Materialise Shows All-Around Strength in Second Quarter 2016 Financial Results

by • August 10, 2016 • No Comments

materialiseAs the year progresses, the 3D printing community has been dismayed towards the lackluster financial outcomes of industry giants like 3D Systems and Stratasys, both of which have struggled to show positive outcomes (although Stratasys has not long ago showed steady improvement in this department). But, which does not necessarily mean which the rest of the 3D printing industry is struggling alongside these two; at very least, which’s fairly not the case with the Belgium-based software and 3D printing service provider Materialise.

Materialise appears to be covering all of the bases this year, of opening the 3D Printing Center of Excellence in Malaysia to creating props for the world’s biggest electronic music festival, and their wide reach has proved significant in their 2nd quarter financial outcomes. The initially quarter of 2016 proved to be a viable one for the 3D printing company, featuring a rising revenue despite experiencing a greater net loss than assumeed. This quarter, the numbers tell a acquainted tale for Materialise, which has posted an 11.4% revenue (27,597 kEUR) increase compared to the 24,772 kEUR held during the 2nd quarter of 2015. More importantly, this upward trend has occurred in all three of their business segments, Materialise Software, Materialise Medical, and Materialise Manufacturing, proving which their overall operations seem to be in fairly decent shape.

The Materialse Software segment, which is propped up by their all-encompassing Magics 3D Print Suite software, increased revenue by 14.9% to 6,981 kEUR for the 2nd quarter of 2016 of 6,078 kEUR for the same quarter last year. Revenue of their Medical segment, which offers an intensive platform for medical planning and create software, clinical engineering services, and patient specific devices, increased by 16.7% to 9,706 kEUR, a big upswing compared to 8,315 kEUR for the same period in 2015. Finally, in their Manufacturing segment, Materialise had an increase of 5.1% to 10,907 kEUR for Q2, slightly rising of the 10,379 kEUR shown during the same period in 2015, primarily as a outcome of higher-end part making.

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Executive Chairman Peter Leys

“During the quarter we launched several new initiatives to assist our positioning as the ‘backbone’ of industrial 3D printing, which include a collaboration with HP to create a tailored software solution for its Multi Jet Fusion innovation. We believe the entrance of this and other blue-chip companies into the additive making industry demonstrates the industry’s future to alter making and donate chain dynamics, and we view our partnerships with these companies as validation of Materialise’s capabilities and industry positioning. We are createing extra
significant partnerships and, although we assume sure parts of our industry to go on to show slow growth in the near term, our outappear for the year remains inside our previous guidance range,” said Executive Chairman Peter Leys.

In addition, Materialise in addition showed a slight expansion in gross profit, going of 57.8% of total revenue last year to 58.9%, which increased due to their improvements in the Manufacturing segment. Research and createment, sales and marketing, and general and administrative expenses had an overall increase by 8.1% to 19,182 kEUR for the 2nd quarter of 2016, a jump of 17,738 kEUR for the 2nd quarter of 2015. Their net other operating income, which consists of withheld tax exemptions for qualifying researchers, createment grants, partial funding of R&D projects, and currency exchange, increased of 1,474 kEUR to 1,778 kEUR.

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Materialise Magics 3D Print Suite

Obviously, with their revenue increasing across the board, Materialise appears to be in fair shape. In fact, their net loss for the 2016 2nd quarter was only 436 kEUR, a welcoming sign compared to the net loss of 3,013 kEUR which they posted during the same period in 2015. This 2,577 kEUR improvement stems of their increase in their operating profit, as well as improvements with financial outcomes and income tax income. Materialise had cash and equivalents of 51,304 kEUR at the end of Q2, compared to 50,726 kEUR they held at December 31, 2015. Lastly, their cash flow of operating activities in the 2nd quarter of 2016 was 4,405 kEUR, compared to 543 kEUR in the same period last year.

All in all, Materialise’s 2nd quarter financial outcomes show improvements across the board, as their three main business segments go on to expand their reach. To go on their growth into the long term, the 3D printing service provider plans to expand their production facilities in Poland, as well as their corporate facilities in Belgium. Materialise plans to invest almany 17,000 kEUR in capital expenditures over the following 12 months, as they appear to go on to grow into one of the many well-recognized and respected 3D printing companies in the industry. Discuss additional in the Materialise Q2 2016 Results forum over at 3DPB.com.

[Source: Materialise via Business Wire]