Feb 27, 2017 | By Tess
Materialise, one of the global leaders in 3D printing software and services, has released its fourth quarter 2016 and full year financial results. Overall, the numbers indicate positive growth for the Belgium-based 3D printing giant.
Notable figures from Materialise’s fourth quarter financial results include an increase of 12.3% for total revenue (up to 31,477 kEUR) compared to the fourth quarter of 2015, with growth in all three of its divisions: Materialise Manufacturing, Materialise Software, and Materialise Medical. The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 12.3% from 2,979 kEUR to 4,455 kEUR.
Materialise Manufacturing saw the most significant gains, with a reported revenue increase of 19.4% (up to 13,326 kEUR). The Materialise Manufacturing segment offers 3D printing and engineering services to a wide range of customers, from the industrial to the commercial sectors. Notably, end part manufacturing sales increased by by 26.4% over the past year. According to the Belgian company, both i.materialise and RapidFit’s results are included in these figures.
The company’s other two segments, Materialise Software and Materialise Medical, saw respective increases of 10.6% (to 8,078 kEUR) and 5.1% (to 10,061 kEUR) from the fourth quarter 2015. Materialise has also reported that sales of its medical software grew 29.8% and direct sales of its complex surgery solutions increased by a whopping 82.9%.
The company also cites an aggregate increase of 3.6% for its research and development, sales and marketing, and general and administrative expenses (up to 18,483 kEUR from 17,849 kEUR in the fourth quarter 2015). While R&D expenses decreased slightly, S&M and G&A expenses increased. Materialise explains these increases as reflecting “the managerial structure and support” it has implemented in its R&D and S&M divisions to support and promote their growth since the company’s IPO. “A number of employees with mixed roles within these groups have evolved into more managerial/administrative roles, and their cost as well as certain other expenses are now categorized into G&A,” says the company.
Other figures from the fourth quarter 2016 results include a decrease in net other operating income (from 2,205 kEUR to 1,779 kEUR), an increase in operating profit (from 932 kEUR to 1,914 kEUR), and a decrease in net shareholders’ equity (from 82,955 kEUR at December 31, 2015 to 79,033 kEUR at December 31, 2015.
Now for Materialise’s full year results. According to a press release, Materalise saw a total revenue increase of 12.2%, from 102,035 kEUR to 114,477 kEUR. The adjusted EBITBA for the 2016 year, which ended on December 31, 2016, increased by 156.5% to 9,458 kEUR. The EBITDA margin, for its part, increased to 8.3% in 2016 from 3.6% in 2015, a growth attributed to a “12.2% revenue growth, a 14.7% improvement in gross profit and an increase of only 5.4% in operational costs…”
“In a challenging environment, Materialise had a good quarter, contributing to a strong year,” commented Executive Chairman Peter Leys. “Strategically, we also made substantial progress during 2016, entering into several partnerships that position us to benefit from the expected growth of additive manufacturing of end parts in general and, more specifically, from the potential growth of specific vertical markets. Operationally, all three of our segments enhanced the focus and effectiveness of their internal operations, contributing to our successful year.”
The three segments, from a full year perspective, increased as well. Materialise Software saw an increase of 16.8% in 2016 to 30,122 kEUR, Materialise Medical saw one of 8.8% to 37,910 kEUR, and Materialise Manufacturing reported an increase of 12.1% in 2016 to 46,406 kEUR.
Leys concluded, saying: “The additive manufacturing market continues to evolve, particularly in the direction of end part production, and we intend to continue positioning Materialise to benefit from this promising growth market in the coming years. Our strategic priorities for 2017 are to sustain our leadership position in software through continued innovation and strategic partnerships; to drive the next stage of growth in our medical division through our focus on the hospital market; to continue increasing our manufacturing of end parts; and to enable the development of additive manufacturing in specific vertical markets.”
Posted in 3D Printer Company