Belgium based Materialise lost revenue compared to last year due to the Covid-19 pandemic and continued to maintain its R&D studies during this period. The supplier of additive manufacturing, medical software and 3D printing services, Materialise announced that it aims to take advantage of new growth opportunities and develop existing businesses when conditions improve. At the same time, looking more hopeful for the 3rd quarter of the year with the joint cost saving measures; Materialise turned the crisis into an opportunity with the measures taken in this difficult period.
Materialise Executive Chairman Peter Leys explained that they had been able to realize cost savings in both sales and marketing and general administrative expense at a higher percentage rate than the revenue decline. According to the Second Quarter 2020 report announced by Belgium based Materialise; the business lost 21% in revenue compared to last year. Stating that in addition to this, they had maintained their strategically important research and development programs, Leys said; “These programs will position us to leverage interest in additive manufacturing; which is increasing in part due to the many 3D printed solutions that have addressed new market needs so expeditiously during the pandemic”.
“Our R&D programs give us an advantage”
Materialise stated in the report that the company’s balance sheet continues to be strong; with 125 million euros total cash and only 17.8 million euros short-term debt as of June 30, 2020. Saying that while their R&D programs and financial strength give them a solid platform from which to expand their existing business and take advantage of new growth opportunities when conditions improve, Peter Leys told; “We draw equal confidence from the many examples of resilience, creativity and discipline; that our workforce has shown worldwide throughout this difficult period”.
“Our aim is to limit the impact of Covid-19”
Peter Leys relayed that with the continued spread of COVID-19 in many parts of the world and the increased disruption to the global economy; they expect the pandemic’s impact on their operations to be even more pronounced in the third quarter; and to continue throughout the entire second half of the year. Leys continued his words as follows; “While we anticipate today that Materialise Medical will gradually pick up in the third quarter of the year; we expect that our Materialise Software and Materialise Manufacturing businesses will continue to be significantly impacted. Our overall goal remains to limit the impact of the COVID-19 crisis; including the associated cost-saving measures we take, on our long-term plans; in particular on our ongoing research and business development programs. Accordingly, we expect the third quarter impact of the crisis on our Adjusted EBITDA will be significant”.