Voxeljet (VJET, Financial) recently delivered good results. With an impressive improvement in revenue, Voxeljet is looking well-positioned to deliver a better financial performance in the coming quarters. Management is counting on various initiatives that can act as growth drivers for the company. It is also expecting a positive contribution from Propshop, which it recently acquired. The company is expecting better printer sales on the back of a backlog worth €4.1 million, which will add to its revenue growth. In addition, customer interest in coating activity is still strong, and with growing demand, Voxeljet is expecting a good ramp up in this area.
This transition will benefit Voxeljet
There is a transition going on in the 3D printing industry to shift it from prototyping to being used for production. Voxeljet is aligning itself towards this transition as this will help the company to ramp up capacity at its facility which will also help the company to enter some long term volume contracts with some of the potential contracts, strengthening its long term prospects. Moreover, this has lot to contribute to Voxeljet’s journey.
This will help the company with a stable and predictable amount of revenue for stated amount of value at fixed rate. It is also expected to ramp up the adoption of its printers for higher volume production application. These will contribute to Voxeljet’s better top line performance in the upcoming quarters.
It is now focusing on operating the Detroit facility which is running late of Voxeljet’s planned schedule. The company is planning to install first sand printer in this December following the second one. This is expected to yield good results for the company in future.
Impressive efforts
To stretch its footprint, Voxeljet is taking some impressive efforts. It is laser focusing on the long term growth drivers such as establishing more large scale service centres globally. It is also looking for various other ventures and additional markets where the company can establish its facility. In addition, Voxeljet is closely engaged in R&D initiatives to further focus on innovations and developing catchy technologies.
It is also carrying its services in other segments also such as retail display, exhibition design, product design, consumer product etc. With these 100% digital services Voxeljet is confident of securing remarkable position in this space. Besides this, Voxeljet is also having acquisition contracts with film production companies including some of the well-known names such as Disney. This is helping the company to sell and distribute digital contents to license holders.
Propshop and Voxeljet are working closely and this partnership is showing good improvement for both. These companies are working on bringing the Prop replica product line while developing its own, into the market by 2015 this will help the company to secure its long term prospects.
Conclusion
Moving on to the financials, Voxeljet is engaged in narrowing its losses so it does not have a trailing and a forward P/E as of now. But the efforts that it is making in the market to propel looks concrete and can surely help the company to gain much market share in the coming days. The overall industry on the other hand is growing at a decent which can also help the company to be a good long term holding, considering the growth momentum of the company, I would like the investors to include Voxeljet in their portfolio.
