Voxeljet (VJET, Financial) posted a relatively wider loss for the second quarter. However, the company is realizing a strong demand in its system revenue that increased 46.2% on the back of two new 3D systems along with improved sales activities and level of quoting that boosted its performance for the quarter. Also, revenue from its service sector made a significant contribution to the top line growth for the quarter as it increased 20% year-on-year basis.
Expecting improvements
Looking ahead, the company should benefit from the strong demand for both 3D printing systems and on-demand printing parts that highlights tremendous prospects for the company in the long run. Also, the company is practicing various growth initiatives such as increasing level of quoting and improvising its sales activities that should drive its performance in the second-half of the year. It is additionally making good moves in its service business by making favorable product mix that should enhance its bottom line performance. Voxeljet has recently completed a capacity expansion at one of its European service center. This additional capacity from its additional capacity at its recently expanded European service center should boost its results going forward.
Investments
Furthermore, the German 3D printer giant is making various investments in the industrial 3D printing market as it sees an improved demand for its printers in the commercial and industrial segments. Additionally, Voxeljet has recently completed relocation of one of its service centers. This relocation of its service center now offers a 40,000-square-feet facility, which is almost double the size of the previous facility. Moreover, the company has now 10 3D printers under its product portfolio, including two VX4000 units, the largest 3D printers in the industry that should certainly drive growth for its service business in the future.
Voxeljet remains on track to expand its capacity in Germany by 50% this year; that should certainly enhance its performance in the second half of the year. The company additionally is on the verge of completing its United State facility near Detroit. Voxeljet is planning to ramp up production in the fiscal 2016 that demonstrates strong prospects for the company in the long run.
Voxeljet is also executing three primary strategic drivers in order to enhance its long-term growth prospects. First and foremost the company is committed to establishing various large-scale service centers in home as well as in the international market. It has already started working on it as it opened its first United State facility in the second quarter. Voxeljet is also analyzing and evaluating various other new markets and geographies for constructing facilities in the near term.
Second, Voxeljet is aggressively investing in the R&D in order to support growing innovation and technology up-radation. It is also practicing various development initiatives that should augment its growth in the long run.
Last but not the least, the company is also concentrating in the development of its sales and marketing initiatives. This should enable the company to increase its market presence. Voxeljet is also investing in the employees as it plans to increase its strength by hiring extra employees.
Conclusion
Voxeljet is making slow but steady progress. It is investing in its various growth drivers that should uplift its performance in the long-run and drive its growth prospects.
