Voxeljet (VJET, Financial), a leading provider of high-speed, large-format 3D printers and on-demand parts services to industrial and commercial customers, released impressive results for the second quarter. Its revenue grew impressively on the back of a better product mix as compared to the same quarter last year.
The company did see some weakness due to the deeper losses that it incurred. Management, on the other hand, believes that the Voxeljet will deliver better results in the future as it is seeing good demand for its 3D printing systems and on-demand printed parts.
Good improvements
Revenue for the second quarter increased by 30.6%. The company saw good demand for its products, and, as a result, gross profit improved. The gross profit margin also rose to 31.5% in the second quarter of 2014 from 28.7% in the second quarter of 2013.
Voxeljet is well on track to deliver growth. The excellence of the operational execution can be seen by the strong performance by the company in the recently reported quarter. It is seeking opportunities to gain more traction and to improve its market share. Voxeljet is having a positive outlook for 3D printing for industrial and commercial applications.
Good moves
The company is pleased with its expanded European service center. Voxeljet has seen commendable growth of 20% in the last quarter. It is expecting a better performance due to a favorable product mix. With this, Voxeljet is expecting robust sales in plastics and PMMA and is receiving record orders for sand parts. This is a clear indication for the company that the 3D printing market is growing at a good pace, and the demand will increase further. Moreover, Voxeljet is experiencing a significant increase in coating and sales activity in both of its business lines and is very excited about its prospects.
In response to the growing demand, the company has nearly doubled its employees in its systems department, and it will continue to add more employees as per the growing demand. Voxeljet thinks that its segment margin will improve after the company starts to leverage the business through increased systems sales.
Voxeljet is also making progress toward increasing its printing capacity in Germany by approximately 50% as compared to the last year. With this ramp up, the company expects to see greater benefits in the second half of the year. It has made several moves in the past and is expecting to see revenue contributions from them by the fourth quarter.
Long-term strategies
Voxeljet also has certain long-term growth strategies. The company is planning to establish more large-scale service centers globally. In this respect, it is opening the first U.S. facility in the coming quarter. Voxeljet also claims to have identified several additional markets and geographies in which it wishes to establish facilities in the near future. In addition, the company is continuously focusing on innovation and advancement of technology by investing in research and development.
Moving on, the last strategic move that Voxeljet is focusing on is to expand its sales and market presence. It is making aggressive moves to penetrate and facilitate the adoption of its technology in the market.
Conclusion
The company is showing robust turnaround moves, and it is evident that the analysts are also expecting a better performance from Voxeljet. So, investors should buy Voxeljet for long-term gains as the company is improving its performance at a good pace and can deliver growth.
