Voxeljet AG (NYSE:VJET) revealed in its recent earnings call that it sees tremendous growth opportunities in both services and systems business.
In its first-ever earnings call as a public company, Voxeljet AG (NYSE:VJET)’s CEO Ingo Ederer exuded confidence that the company would come with more capability coming online in the second quarter of 2014.
Three-pronged strategy
Earlier this month, Voxeljet AG (NYSE:VJET) issued its first quarterly report since going public a few months back. The tiny company’s stock had been on a tear, doubling in the month on the speculative frenzy on 3-D printing stocks. Interestingly, the company sold just three new 3D printers in the third quarter of 2013 compared to two used 3D printers in last year’s third quarter.
During the recent earnings call, Voxeljet AG (NYSE:VJET)’s CEO outlined the company’s three-pronged strategy.
The pioneer in additive manufacturing and 3D printing would first focus on establishing more large scale service centers around the world with North America and Asia being its likely next locations. Secondly, the company plans to continue to innovate and grow by developing new printing machines and mature them with the growing needs of its ever expanding number of users of 3D printing. Thirdly, VJET wants to grow its global sales and marketing presence, as the company believes this would increase its market penetration and facilitate adoption of its technology.
Voxeljet AG (NYSE:VJET)’s CEO disclosed that the company currently has over 50 active projects with proprietary intellectual property and jurisdiction of development which the company believes would enhance its position in the industry and contribute to its long-term future growth.
Dr. Ederer also pointed out that the company’s experience suggests as customers become more comfortable with the company’s technology and recognizing its benefits, they’re more likely to purchase a 3D printer which supports the company’s Systems segments.
Enhanced gross margin
During the earnings call, Voxeljet AG (NYSE:VJET)’s chief financial officer Rudolf Franz highlighted the fact that VJET’s systems revenue increased nearly three-fold or 273% to EUR 1.8 million from EUR 0.5 million. Systems revenue represented 52% of total revenues in the third quarter of 2013.
The chief financial officer disclosed during the recent earnings call that as Voxeljet AG (NYSE:VJET)’s business grows over the coming quarters, it anticipates gross margins in the system segment to be in the range of 40% to 45%. Mr. Rudolf Franz pointed out the gross margin in services is highly influenced by product mix. The company anticipates service margin to remain in the range of 40% to 45% in the near term, while in longer term, the company expects service margin to be in the 45% to 50% range.
