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Edited Transcript of VJET.OQ earnings conference call or presentation 19-Aug-22 12:30pm GMT

Q2 2022 Voxeljet AG Earnings Call Friedberg Aug 19, 2022 (Thomson StreetEvents) -- Edited Transcript of Voxeljet AG earnings conference call or presentation Friday, August 19, 2022 at 12:30:00pm GMT TEXT version of Transcript ================================================================================ Corporate Participants ================================================================================ * Ingo Ederer voxeljet AG - CEO & Member of Management Board * Johannes Pesch voxeljet AG - Director of Business Development & IR * Rudolf P. Franz voxeljet AG - CFO, COO & Member of Management Board ================================================================================ Conference Call Participants ================================================================================ * Brian David Kinstlinger Alliance Global Partners, Research Division - Head of TMT Research, MD & Senior Technology Analyst * Jacob Michael Stephan Lake Street Capital Markets, LLC, Research Division - Research Analyst ================================================================================ Presentation -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- Greetings. Welcome to voxeljet AG's Second Quarter 2022 Financial Results Conference Call. (Operator Instructions) Please note, this conference is being recorded. At this time, I'll turn the conference over to Johannes Pesch, Director of Investor Relations and Business Development. Johannes, you may begin. -------------------------------------------------------------------------------- Johannes Pesch, voxeljet AG - Director of Business Development & IR [2] -------------------------------------------------------------------------------- Thank you, operator, and good morning, everyone. Here with me today are Dr. Ingo Ederer, voxeljet's Chief Executive Officer; and Rudi Franz, voxeljet's Chief Financial Officer. Yesterday, after the market closed, voxeljet issued a press release announcing its second quarter financial results for the period ended June 30, 2022. The release, as well as the accompanying presentation for this conference call, is available in the Investor Relations section of the company's website at voxeljet.com. During our call, we may make certain forward-looking statements about the company's performance, including expectations on results from our current order backlog. Such forward-looking statements are not guarantees of future performance and therefore one should not place undue reliance upon them. Forward-looking statements are also subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed, including the risks and uncertainties caused by the current COVID-19 pandemic and the resulting uncertainty in the global company. For additional information concerning factors that could cause actual results to differ from those discussed in our forward-looking statements, you should refer to the ordinary statements contained in our press release as well as the risk factors contained in the company's filings with the Securities and Exchange Commission. With that, I would now like to turn the call over to Ingo, Chief Executive Officer of voxeljet. -------------------------------------------------------------------------------- Ingo Ederer, voxeljet AG - CEO & Member of Management Board [3] -------------------------------------------------------------------------------- Thank you, Johannes. Good morning, everyone. Thank you for joining us on our earnings call today. Let's turn to Slide 4. Our roots reached back to the year 1995 with the first successful dosing of UV resins. In the context of a hidden project, initial 3D printing tests were performed at Technical University of Munich. I co-founded the company on May 5, 1999, as a spinoff from the University with a clear vision in mind: To establish new manufacturing standards. Today, we provide our customers a strategic competitive advantage by upgrading the existing conventional production methods to additive manufacturing solutions. We pushed technology boundaries and developed new generative processes for the serious production of complex components. Let's turn to Slide 5, where we describe our technology. In the additive manufacturing market, there are likely more than 10 different technologies, each with its specialized field of application. We use a technology called binder jetting. Binder jetting is especially suited for high-volume manufacturing because of its potential to scale. With our VJET X technology, we are pushing new boundaries. On Slide 6, you can find a highlight overview of our company, including recently achieved milestones. We believe these will help us on our mission to establish new manufacturing standards. In recent months, we have probably seen some of the best order inflow for 3D printers we have ever had. Now the focus is on delivering these printers on time. On Slide 7, you can see pictures of our production facilities in Germany, the U.S. and China. As you might have seen from the press release last week, we have entered into a sale-leaseback transaction for our headquarters here in Germany. We expect gross proceeds of EUR 26.5 million and plan to use the funds to repay our debt. We expect the transaction to close towards the end of the third quarter of 2022. Now let me briefly explain our 2 business segments. In the Services segment, top left side of this slide, we operate our own 3D printers in 3 facilities around the world to offer affordable on-demand access to our technology. Demand in this segment has been outstanding in recent months in Europe and in the U.S., and we were basically at or overcapacity for the whole time. The barriers to entry are very low as customers just need to send in the 3D data and we will print parts for them. This is a great and easy way for our customers to understand new business opportunities in 3D printing. The short sales cycles in Services helps us balancing the typical long sales cycles in our Systems segment. Customers come for various industries, including automotive, aerospace, general engineering as well as art and architecture. In the U.S., one of our largest on-demand printing client is a supplier to a leading space exploration company. In our Systems segment, we manufacture and sell industrial-grade, high-speed, large-format 3D printing systems geared towards mass production of complex models, molds and direct parts. Systems revenue also includes recurring revenue from the sale of consumables, maintenance contracts, upgrades and other aftersales activities. Let's turn to Slide 8 and the illustration of the wide range of applications of our technology. We are encouraged by the many discussions that we are having with different players in a broad variety of industries. They are all seriously looking at adopting our technology for well-tuned applications. And this interest is translating into orders. In recent months, we have seen some of the best order inflow for our 3D printers ever. To give you some examples. There is, for instance, an innovative U.S. yacht company producing several thousands of advanced propeller with our technology. These new propellers have a shape that cannot be made conventionally. We have added more details on this exciting project in one of the other slides. There are leading U.S.-based exploration companies using our technology to make parts for their rockets more aerodynamic. There are car makers who use our technology to make their vehicles lightweight and energy-efficient. There is a leading University in Zurich, Switzerland, the ETH, using our technology to make the most amazing concrete structures. And there are many more. Let's turn to Slide 9 and some thoughts on the additive manufacturing market. As you can see, all of the associated project growth to accelerate over the next years. This growth will be driven by a larger share of sales to manufacturing. I believe we are in an excellent position to capture our fair share of this growing market over the next years because what really differentiates us from the other players in the 3D printing industry is our focus on solutions for manufacturing or industrial production at scale. We have been working with leading industrial OEMs since our foundation. We sold our first 3D printers to BMW and Daimler more than 20 years ago. Our technology has evolved significantly over the last years in terms of speed, accuracy and the degree of automation of the whole process chain. Slide 10 shows our global sales network and production footprint. As you can see, we have reached an established position in all major markets in Europe, U.S. as well as Asia. We have halted our activities in Russia and Belarus until further notice. Turning to Slide 11. On the left side, we have summarized our USPs. We differentiate ourselves from our competitors by broad size, material diversity and speed. This leads to a complete set of industrial 3D printers to support critical-demanding applications and address the challenges and needs that are most important to our customers. Each model can be used with multiple material sets. For example, we offer the VX1000 3D printer for the printing of highly expert sand-casting molds for ceramics or as a plastic polymerization printer. On the bottom right side of the slide, you can see some of our new products. With these new printers, we believe we can increase our total addressable market considerably. We can target new applications with an existing customer groups, for example, with VJET X. With high-speed sintering, we can address both new and existing markets, like for example audio equipment, automotive interiors and exteriors, sealings, gaskets, valves, scrubbers and other consumer products. Let's start with the formal part of the presentation on Slide 13. I will begin with an overview of the results for the second quarter. Rudi will then provide a more in-depth view of our financials for the second quarter and our outlook for the rest of 2022. Following his comments, we will be happy to take your questions. We are very happy with the results for the quarter and how the momentum has continued to build in recent months. We are extremely busy in our on-demand printing segment and won major orders for 3D printing systems. Very recently, we signed an order for 2 printers worth over EUR 2 million with a client here in Germany. With the currently signed number of orders for 3D printers, we have already achieved our target for 2022. Now we are working hard to make this -- the deliveries and installations on time to be able to book revenue for these orders in 2022. Similar to many other companies, we continue to see some delays with our suppliers, especially for electrical components. We are working closely with our suppliers and the support we receive is excellent. Let's look at the numbers in some more detail. Total revenue for the quarter increased 35%, with both segments contributing equally to this growth. Revenue in the on-demand 3D printing segment increased 36% year-over-year and absolute gross profit almost doubled. As mentioned earlier, it is great to see that this growth comes from a wide variety of applications. Projects for space exploration and yacht in U.S., large orders from the art and architecture sector here in Germany, components for cooling of parts in electric vehicles in the U.K. and so on. The high utilization leads to excellent gross margins in this segment of roughly 40%. The high utilization also means that each printing job is fully packed and there is less waste. We mentioned in our earlier conference calls that on-demand printing revenue is a good leading indicator for future sales of 3D printers. This is exactly what we have seen in recent months. And especially in July and August, order inflow for 3D printers was one of the best we ever had so far. This makes us very optimistic for our Systems segment. Looking at the right side of the slide and gross margins. We are very pleased with the high gross profit and gross profit margins in our Services segment over -- of roughly 40%. Utilization is key. And as it was the case in the first quarter, we had more orders than printing capacity. In our Systems segment, gross profit margin from the sale of 3D printers slightly increased. The overall segment saw a decline in gross profit margin as a result of change in valuation allowance for inventories following our inventory reserve policy. This valuation allowance is a noncash item. Let's turn to Slide 14 and a quick update on really exciting projects. U.S.-based Sharrow Marine developed a new type of propeller that cannot be manufactured conventionally. On the left side of the slide, you can see a standard propeller and the corresponding turbulences it creates under water. In the center of the slide, you can see the new propeller. It creates significantly less turbulences in the tip cavitation and the vortices. This new design has several advantages, then it is up to 30% more energy efficient and creates more speed and also less vibrations for much better right comfort. Sharrow Marine purchased 2 printers so far and also ordered a large amount of parts in our U.S. 3D parts production center. On the right side of the slide, you can see the 3D printer pattern and the cast propeller in a close up. We believe that this part cannot be made with any other technology in higher quantities at comparable costs to our approach of printing the pattern and then casting it. On the bottom left side of the slide, we have included a link to a video of these propellers in action. It is really remarkable. On Slide 15, we have provided a quick update on our high-speed sintering technology called grayscale printing. We have mentioned this in one of the earlier calls, and I can now show more details. With this technology, we can adjust the amount of ink on the voxel level. Remember, a voxel is a 3D pixel. Let's start at the left side of this slide. Here, we can see printing data that has been prepared with different levels of gray. This information is then sent to and processed by the print head by adjusting the ink amount on the voxel level. We can also further the energy input and can avoid a detailing agent which makes our technology cost-efficient in production. On the right side of this slide, you can see the results from this grayscaling effect. It enables functionality graded monomaterial components. This means that you can tailor, for example, the flexibility of a shoe sole to the specific needs of a person, and you can do it with only one material by adjusting the amount of ink. We are currently trying to bring this technology from the VX200 high-speed sintering to the larger-production HSS printer. On Slide 16, you can see some parts printed on the big high-speed sintering printer and an overview of the topics we have been working on. I would like to highlight that we have improved overall part quality and are already trending many benchmark parts for our customers. We identified a third potential beta client and are our advanced discussions with them. Also, unattended operation of this large printer is now possible. This means we can, for example, run overnight jobs. In the lower half of the slide, you can see some of the parts we have been printing. We have printed an air duct for student-built racing car. After printing, it was colored and then mounted onto the car. It looks very impressive. Above that, you can see a car grill and housing for a vacuum cleaner robots. We continue to make progress with VJET X and are improving the stability and performance of the printer. We now have a large high-tech industrial microwave in operation in our facility in Friedberg. Similar to the ones at the car maker, this allows us to develop the inorganics process further to an application in our standard VX1000 IOB printers. In the coming years, we believe there will be a lot of demand for this inorganic process because it creates no harmful emissions during casting and is fully environmentally friendly. Regarding materials in high-speed sintering. We're currently exploring the use of PBT. This is a thermalplastic engineering polymer that can be used as an insulator in the electrical and electronics industries for housings in electric engineering, in automotive construction as plug connectors and in household applications like showerhead or irons. Just recently, we have put commercially available concrete powder from a local stock on our VX200, and we were able to print parts of good quality. We are now scaling this up to our larger platforms. Slide 17 breaks down order backlog by quarter, revenue by geography and operating expenses by category. When looking at revenue by geographic region, we target an even distribution across the 3 regions to hedge against risk from local events. As mentioned earlier, we were able to win major orders for 3D printers in recent months, and our backlog is growing. We target to have at least a 1-year backlog because that makes it easier to plan and to optimize our production. We are getting there. To sum up the recent months: Excellent growth rates and exciting projects in our on-demand printing segment, one of the best order inflows for our 3D printers and good progress in key R&D projects. We are very excited about how the company is positioned and our opportunities ahead. With that, I would like to turn the call over to Rudi. -------------------------------------------------------------------------------- Rudolf P. Franz, voxeljet AG - CFO, COO & Member of Management Board [4] -------------------------------------------------------------------------------- Thank you, Ingo, and good morning to everyone. As mentioned in previous calls, it's our target to deliver long-term value for our shareholders through attractive growth, stronger margins and optimal deployment of capital. Last week, we entered into a sale and leaseback transaction of our headquarters in Friedberg. We are fully committed to our operation here in Germany and signed a 15 years lease terms with 2 consecutive 5-years extension options. The buyer is an institutional unaffiliated real estate investor. We expect gross proceeds of approximately EUR 26.5 million and the closing to take place towards the end of the third quarter. We will proceed to plan to repay our financial liabilities. As we continue on our path towards profitability, the sale and leaseback transaction aligns with our objective to sucre nondilutive financing wherever possible and focus on our main business. which is developing, manufacturing and selling high tech industrial 3D printers. We are very happy with how the business went in recent months both in our Systems and Services segment. Regarding COVID-19. We continue to work some special measures in place around isolation and contamination protocols to ensure the safety of our employees and to reduce risk of operational disruption. We are monitoring the evolving situation carefully. I will now take you through the financials for the second quarter of 2022. After that, we are happy to take your questions. Turning to Slide 19. Total revenues increased 35.4% to EUR 6.7 million for the second quarter of 2022 as compared to EUR 4.9 million for the last year's second quarter. Gross profit and gross profit margin increased to EUR 2.1 million and 31.3% from almost EUR 4 million and 28.6% for the second quarter of last year. The next slide shows our segment reporting for the quarter in our segment. Systems segment on Slide 20. We were able to collect major orders for 3D printers, especially in recent months. Revenue for the second quarter of this year increased 35% compared to the same period last year. Gross profit and gross margin for the quarter for the Systems segment were EUR 0.9 million and 24% compared to over EUR 0.8 million and 28% for the second quarter of 2021. While the gross profit margin for 3D printers slightly increased, the overall margins for the segment decreased as a result of a change in the valuation allowance for inventory following our inventory reserve policy. This is a noncash item. Turning to Slide 21. Revenue from our 3D part production center is summarized in the Service segment. Germany and the U.S. continues to be exceptionally strong, and it's great to see that the momentum is carrying on. In China, we saw a strong sequential increase from the previous quarter of this year. The second quarter was one of the best quarters we ever had in the April to June period and our demand parts production. Service revenues increased 35.8% to EUR 3.1 million for the second quarter 2022 compared to EUR 2.3 million for the same quarter of 2021. Services gross profit margin significantly increased to 39.7% for the second quarter of 2022 from 28.9% for the same quarter of 2021. The improvement was driven by a strong gross margin contribution from our German and U.S. 3D parts production centers. Absolute gross profit almost doubled to EUR 1.2 million for this year second quarter from EUR 0.7 million for the same quarter of last year. Looking now to the rest of the income statement on Slide 22. Selling expenses increased to EUR 1.9 million for the second quarter of 2022 from EUR 0.5 million for the second quarter of last year. This increase was mainly related to higher distribution expenses in line with the increase in revenues. Distribution expenses, like shipping and packaging, are main driver of selling expenses and not only depend on the amount of revenue but also on the qualities and types of products sold as well as destination to which those goods are being delivered. Therefore, distribution expenses can vary from quarter to quarter. Administrative expenses were EUR 1.5 million as compared to EUR 2.0 million for the second quarter of 2021. This decrease was mainly related to significant lower legal advisory fees related to our stock market listing and lower fees expended on financial institutions in connection with fundraising activities. Research and development expenses were stable at EUR 1.7 million. These expenses are usually driven by individual projects, effectively through the consumption of materials, as well as [external demand], external services. It may vary significantly from quarter-to-quarter. Operating loss was EUR 2 million for the second quarter of 2022 compared to an operating loss of EUR 3.9 million for the comparative period last year. Improvement was mainly due to a positive net impact from other operating income, higher gross margin and lower administrative expenses. Net loss for the quarter improved to EUR 1.8 million or EUR 0.26 per ADS compared to a net loss of EUR 2.5 million or EUR 0.41 per ADS for the prior year second quarter. We have provided the same presentation for the first half period ended June 30, 2022, on Slides 23 through 26. Slide 27 shows selected balance sheet items. At June 30, 2022, the company had free cash of roughly EUR 13 million. Total debt at June 30, 2020 (sic) [2022], was approximately EUR 27.5 million. As mentioned at the beginning, we plan to repay the debt with the proceeds for the sale and leaseback transaction and expect the closing of this transaction towards the end of the third quarter of 2022. Weighted average number of shares outstanding as of 30 June 2022 was 7,026,711 ADS this also the current number of shares outstanding. Moving now on to Slide 28 and our financial guidance for the full year 2022, which remains unchanged. Revenue for the third quarter of 2022 is expected to be in the range of EUR 5.5 million to EUR 6 million. This concludes my remarks. And with that, we'll now open the call for your questions. Operator? ================================================================================ Questions and Answers -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- (Operator Instructions) Our first question comes from the line of Brian Kinstlinger with Alliance Global. -------------------------------------------------------------------------------- Brian David Kinstlinger, Alliance Global Partners, Research Division - Head of TMT Research, MD & Senior Technology Analyst [2] -------------------------------------------------------------------------------- Great to see the order flow during the second quarter. My first question is about those bookings. The -- I'm hoping we can get a little bit more information. You certainly talked about a lot of different projects. Can you share information, such as how many customers ordered? What I calculate was 5 printers. How many were repeat customers? Industries? And even which printers potentially you sold? Anything you can share would be helpful. -------------------------------------------------------------------------------- Rudolf P. Franz, voxeljet AG - CFO, COO & Member of Management Board [3] -------------------------------------------------------------------------------- Thank you for the question. Usually, we don't share this in that detail you're asking, Brian. What I can say is there is -- the 5 printers were sold to all new customers. Sharrow Marine was named in this presentation where we gave as well some more insights. And the booking of those printers is planned towards the second half of 2022 as well as the first half of 2023. The industries are, as said, Sharrow Marine, this is -- well, it's engine technology, automotive, renewable energy. I think these are currently the main projects where we see a high demand of equipment. Material sets were sand, PMMA, again, for the demand of complex metal pieces. -------------------------------------------------------------------------------- Brian David Kinstlinger, Alliance Global Partners, Research Division - Head of TMT Research, MD & Senior Technology Analyst [4] -------------------------------------------------------------------------------- Great. And you had mentioned on several occasions that one of the leading indicators is the Services business. So were these -- how many of these 5 customers were previously Services customers, where you were printing parts for them? -------------------------------------------------------------------------------- Rudolf P. Franz, voxeljet AG - CFO, COO & Member of Management Board [5] -------------------------------------------------------------------------------- So every -- I would say, almost every System customer was or is still a Service customer. So the Service segment is, I would say, a real cash flow positive marketing tool. Because initially, we don't have to oversell. Clients can send us data sets and we print the goods for them, which is a real good showcase. So as said, every system customer also is a Service client. And the Service segment, that's what we currently see as well, is the high demand very likely comes from the geopolitical challenges all of us are facing and supply chain issues. We assume that those -- we see those as well in 2023. And another driver is for sure that the industry is really seeing additive manufacturing, or what we do, as a standard process, meanwhile, and really started ordering high volume. -------------------------------------------------------------------------------- Brian David Kinstlinger, Alliance Global Partners, Research Division - Head of TMT Research, MD & Senior Technology Analyst [6] -------------------------------------------------------------------------------- Great. And then I think in the press release, you mentioned the challenges of the supply chain, which I assume is sourcing components for you. And your focus is on getting the built and delivered. Can you touch on whether there one or several components that you're having trouble with? What the lead times look like? And anything that is in your control that can speed up the process? -------------------------------------------------------------------------------- Rudolf P. Franz, voxeljet AG - CFO, COO & Member of Management Board [7] -------------------------------------------------------------------------------- High level, we manage it very good. Our team is focused and very close with our suppliers. Critical components, and I'm sure you hear this everywhere, are electrical components, microchips. I think we're getting closer, and we get the parts. But it's still a challenge, and we have to order a lot earlier. And accordingly, we have to accept higher inventory. So lead times are a lot longer. And accordingly, too, we currently build our book for 2023 on the Systems side, and we already negotiated volumes with our suppliers to be on the safe side. Maybe Johannes, you want to answer (inaudible)? It's your department. -------------------------------------------------------------------------------- Johannes Pesch, voxeljet AG - Director of Business Development & IR [8] -------------------------------------------------------------------------------- So the critical part of the electrical components in the electrical cabinet. But the supplier is really helping us nicely. We are chasing them and then we get the part. There's a delay, but we will get them, certainly. -------------------------------------------------------------------------------- Brian David Kinstlinger, Alliance Global Partners, Research Division - Head of TMT Research, MD & Senior Technology Analyst [9] -------------------------------------------------------------------------------- And my last question as it relates to your large German auto OEM. Have they installed all the printers that from the original order, could you just remind me? And have they ordered additional printers since? -------------------------------------------------------------------------------- Rudolf P. Franz, voxeljet AG - CFO, COO & Member of Management Board [10] -------------------------------------------------------------------------------- I hand over to Ingo, he's working on that slide. -------------------------------------------------------------------------------- Ingo Ederer, voxeljet AG - CEO & Member of Management Board [11] -------------------------------------------------------------------------------- So we understand whether we have... -------------------------------------------------------------------------------- Rudolf P. Franz, voxeljet AG - CFO, COO & Member of Management Board [12] -------------------------------------------------------------------------------- All 5 printers are installed... -------------------------------------------------------------------------------- Ingo Ederer, voxeljet AG - CEO & Member of Management Board [13] -------------------------------------------------------------------------------- Yes, yes. We are in ongoing discussion with the client about further sales, also with the suppliers. Such a car maker has a network of suppliers supplying similar or the same products at scale. And these discussions are ongoing. And we believe that we can gather further sales probably next year for this same technology. -------------------------------------------------------------------------------- Operator [14] -------------------------------------------------------------------------------- Our next question is from the line of Jacob Stephan with Lake Street Capital. -------------------------------------------------------------------------------- Jacob Michael Stephan, Lake Street Capital Markets, LLC, Research Division - Research Analyst [15] -------------------------------------------------------------------------------- Congrats on the good results. Maybe just touching on gross margin in the Systems segment. It looks like they were down just slightly year-over-year. Is that mainly due to the product mix or the kind of supply chain component constraints like we were just talking about? -------------------------------------------------------------------------------- Rudolf P. Franz, voxeljet AG - CFO, COO & Member of Management Board [16] -------------------------------------------------------------------------------- As mentioned in the presentation, the decrease or the lower gross profit is primarily related to a onetime effect, where we adjusted -- or where we had to adjust our inventory, which went through this. If you would -- that was a noncash item. If you would exclude this, gross margin would look very different. So overall, we are -- re this booking, we were very happy to the gross profit. But you're right, the gross margin is fluctuating. But in this specific quarter, there is a good reason for it. It was this booking of inventory. -------------------------------------------------------------------------------- Jacob Michael Stephan, Lake Street Capital Markets, LLC, Research Division - Research Analyst [17] -------------------------------------------------------------------------------- Okay. Yes. No, that's helpful. And then maybe just revenue in Asia, it looked like it was up nicely sequentially and year-over-year. Could you just talk about the primary driver of that growth? -------------------------------------------------------------------------------- Rudolf P. Franz, voxeljet AG - CFO, COO & Member of Management Board [18] -------------------------------------------------------------------------------- As mentioned, I think our clients are really seeing this technology as a standard technology and they build their own production plans against it. I think we made a good example of Sharrow Marine, for example. That product is designed for -- using a production process which is called additive manufacturing. I think the global supply chain issues are not only on microchips. We see this on other components as well. I think that pushes additive manufacturing as well. And we believe that setting the goal that, going forward, we will see a lot more growth because that technology is meanwhile really an accepted and very robust technology where you really can start building production capacity against. -------------------------------------------------------------------------------- Jacob Michael Stephan, Lake Street Capital Markets, LLC, Research Division - Research Analyst [19] -------------------------------------------------------------------------------- Okay. And is it maybe fair to say that the EUR 1.5 million from Asia quarter was mostly Services revenue, but could potentially lead to some additional Systems revenue? -------------------------------------------------------------------------------- Rudolf P. Franz, voxeljet AG - CFO, COO & Member of Management Board [20] -------------------------------------------------------------------------------- No. I think we signed off on one system, and the rest is for sure Service these activities and aftermarket business components. But we signed off on one big printer in Q2. -------------------------------------------------------------------------------- Ingo Ederer, voxeljet AG - CEO & Member of Management Board [21] -------------------------------------------------------------------------------- Interesting use with this printer is that the facility is already prepared at the site slide for accepting multiple printers at the same type. -------------------------------------------------------------------------------- Rudolf P. Franz, voxeljet AG - CFO, COO & Member of Management Board [22] -------------------------------------------------------------------------------- So it's a -- we think we can't say more about this one. -------------------------------------------------------------------------------- Operator [23] -------------------------------------------------------------------------------- Thank you. We reached the end of the question and answer session. I'll turn the call over to Ingo Ederer for closing remarks. -------------------------------------------------------------------------------- Ingo Ederer, voxeljet AG - CEO & Member of Management Board [24] -------------------------------------------------------------------------------- Thank you. We are pushing ahead with full speed and are very excited about the opportunities in front of us. Order inflow is one of the best we ever had and we are working hard to deliver those printers on time. Hopefully, we can see many of you next month at the IMTS in Chicago. Have a great summer, and we look forward to speaking with you in our next earnings call, which we expect to take place in November, with results for the third quarter of 2022. Thank you and goodbye. Have a good weekend. -------------------------------------------------------------------------------- Rudolf P. Franz, voxeljet AG - CFO, COO & Member of Management Board [25] -------------------------------------------------------------------------------- Thank you. Have a good weekend. -------------------------------------------------------------------------------- Operator [26] -------------------------------------------------------------------------------- This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.