Last Thursday, Voxeljet AG (ADR) (NYSE:VJET) issued its first quarterly report since going public little over a month ago. The tiny company’s stock had been on a tear, doubling in the month on the speculative frenzy on 3-D printing stocks.

When they reported their earnings after the close, even though their revenues were tiny, they unexpectedly reported a small EPS profit (0.11c EUR per ADS). To give you an idea just how small Voxeljet AG (ADR) (NYSE:VJET) is, the 4.76 million (USD) revenue was driven by the sale of just 3 units of its million-dollar 3D printing machines.

“The Company sold three new 3D printers in the third quarter of 2013 compared to two used 3D printers in last year’s third quarter.”

Before we discuss how they sold they machines, let’s put their quarter in perspective.

Now this 5 million revenue quarter prices the company at a nosebleed price-to-sales (ttm) of 88. Compare that to DDD and SSYS — both of which are already controversially high …

VJET

But wait! … it gets worse!

Oops, looks like nobody read the fine print. Even Citron can’t believe its eyes.

“”In September 2013 another loan was granted to a customer for the purpose of financing their acquisition of a 3D printer in the amount of kEUR 678″

“In September 2013, the Company recognized revenue of kEUR 868 on the sale of two new 3D printers to a customer in exchange for consideration consisting of kEUR 630 cash and kEUR 238 in research services to be received. The revenue recognized represents the fair value of the 3D printers sold determined by reference to the average discount off list price for such printers.”

So, the actual number of printer units sold new at fair market value for full price was ….. 0. Those transactions represent fully half the company’s revenues for the quarter, finessed with incentives, to avoid posting its first public quarter as a US traded company with zero system sales. We’re not even sure such sales qualify as revenue … that would depend on who the parties are and the collectability of the receivables, but why ruin a good bubble.

See full article in PDF format here: Citron ON VJET: How Is This Company Even Public?

Citron ON VJET: How Is This Company Even Public?