The changes in foreign currency losses and gains were primarily driven by the valuation of the intercompany loans granted by the parent company to our UK and US subsidiaries.
Operating loss was kEUR 3,957 in the second quarter of 2020, compared to an operating loss of kEUR 4,193 in the comparative period in 2019. In spite of the significant decrease in gross profit and higher administrative expenses, operating loss improved. This was mainly due to the decrease in selling expenses as well as a lower negative net impact from other operating expenses and other operating income amounting to kEUR 206 in the second quarter of 2020 compared to kEUR 670 in the second quarter of 2019. Also research and development expenses slightly decreased.
Financial result was negative kEUR 1,172 in the second quarter of 2020, compared to a financial result of positive kEUR 315 in the comparative period in 2019. This was mainly related to higher finance expenses related to the revaluation of derivative financial instruments amounting to kEUR 983 compared to a finance income of kEUR 566 in the last year’s same period. The derivative financial instruments are revalued on each balance sheet date, with changes in the fair value between reporting periods recorded within financial result of the consolidated statements of comprehensive loss. An increase in our share price results in an finance expense, while a decrease leads to a finance income. Interest expense included interest from long term debt with other financial institutions which amounted to kEUR 290 for the second quarter of 2020, compared to kEUR 249 in the comparative period in 2019.
Net loss for the second quarter of 2020 was kEUR 5,123 or EUR 1.06 per share, as compared to net loss of kEUR 3,919, or EUR 0.79 per share, in the second quarter of 2019.
Based on a conversion rate of five American Depositary Shares (“ADSs”) per ordinary share, net loss was at EUR 0.21 per ADS for the second quarter of 2020, compared to a net loss of EUR 0.16 per ADS for the second quarter of 2019. Earnings per share is computed by dividing net income attributable to stockholders of the parent by the weighted-average number of ordinary shares outstanding during the periods. Earnings per ADS is calculated by dividing the above earnings per share by five as each ordinary share represents five ADSs.
Six Months Ended June 30, 2020 Results
Revenues for the six months ended June 30, 2020 decreased by 26.5% to kEUR 7,800 compared to kEUR 10,615 in the prior year period.
Systems revenues were kEUR 3,176 for the first six months of 2020 compared to kEUR 4,544 for the same period last year. The Company sold two new and one used and refurbished 3D printer during the first six months of 2020, compared to four new and one used and refurbished 3D printer in the prior year period. Systems revenues also include all Systems-related revenues from consumables, spare parts and maintenance. The decrease of revenues from our Systems segment was due to lower revenues from the sale of 3D printers, but also Systems-related revenue decreased. The decreases in both business fields were mainly due to the challenging global environment caused by the ongoing global pandemic of the COVID-19 situation. The situation significantly limited our ability to perform installations of 3D printers as well as to offer service visits. Therefore, we were not able to fulfill our scheduled transactions and consequently we could not recognize revenue for those services. We also experienced lower demand for consumables and spare parts, as our clients have reduced their production activities. Systems revenues represented 40.7% of total revenue for the six months ended June 30, 2020 compared to 42.8% for the same period in the prior year.
Services revenues were kEUR 4,624 for the six months ended June 30, 2020 compared to kEUR 6,071 for the same period last year. This decrease of 24.0% was mainly due to lower revenue contributions from our subsidiary voxeljet America Inc. (“voxeljet America”) as well as from the German operation, also related to the COVID-19 situation leading to a significant decrease in demand from our clients. Revenue contribution from our subsidiary voxeljet UK Ltd. (“voxeljet UK”) significantly decreased. This was related to the close down of our service center in the United Kingdom in the fourth quarter of 2019 in the course of our restructuring, which started in the third quarter of 2019.
Cost of sales for the six months ended June 30, 2020 were kEUR 5,630, a decrease of kEUR 1,546, over cost of sales of kEUR 7,176 for the same period in 2019.
Gross profit and gross profit margin for the six months ended June 30, 2020 were kEUR 2,170 and 27.8%, respectively, compared to kEUR 3,439 and 32.4% in the prior year period.
Gross profit for our Systems segment decreased to kEUR 980 for the six months ended June 30, 2020 from kEUR 1,360 in the same period in 2019. This decrease was mainly due to the decline in revenues of kEUR 1,368. The gross profit margin for this segment was almost flat amounting to 30.9% compared to 29.9% for the prior period.
Gross profit for our Services segment decreased to kEUR 1,190 for the six months ended June 30, 2020 from kEUR 2,079 in the same period of 2019. The gross profit margin for this segment decreased to 25.7% for the first six months of 2020 from 34.2% in the same period in 2019. This was mainly related to lower gross profit as well as gross profit margin contribution as a result of lower utilization inline with the decrease in revenues from our American service center. Gross profit as well as gross profit margin contribution from our German service center slightly improved quarter over quarter in spite of the decline in revenues, due to cost savings measures implemented as a consequence of the COVID-19 situation. Gross profit and gross profit margin contribution from voxeljet China remained almost unchanged.
Selling expenses were kEUR 2,841 for the six months ended June 30, 2020 compared to kEUR 3,438 in the same period in 2019. The year over year decrease is mainly due to lower distribution expenses corresponding to the decrease in revenues. Shipping and packaging expenses as a main driver of the selling expenses could vary from quarter to quarter depending on quantity and types of products, as well as the destinations where those goods are being delivered.
Administrative expenses increased by kEUR 193 to kEUR 3,217 for the first six months of 2020 from kEUR 3,024 in the prior year’s period. The increase was mainly due to higher unexpected advisor fees also related to the Audit Committee Investigation as previously disclosed in the Company’s SEC filings.
R&D expenses decreased to kEUR 3,255 for the six months ended June 30, 2020 from kEUR 3,407 in the same period in 2019, a decrease of kEUR 152, or 4.5%. The decrease was mainly due to lower personnel expenses.
Other operating expenses for the six months ended June 30, 2020 were kEUR 1,368 compared to kEUR 434 in the prior year period. This was mainly due to higher losses from foreign currency transactions amounting to kEUR 1,301 for the six months ended June 30, 2020 compared to kEUR 421 in the prior year’s period.
Other operating income was kEUR 1,035 for the six months ended June 30, 2020, compared to kEUR 729 in the prior year period. The increase was mainly due to the government grant received by voxeljet America in April 2020 from the United States Small Business Administration (“SBA”) under the COVID-19 funding program amounting to kUSD 325. The full amount was recognised in profit and loss, in the second quarter of 2020, as the related costs for which the grant is intended to compensate, occurred in this period and we assume, that we comply with the conditions of the funding. The assessment of SBA whether we are in compliance with the conditions, has not been performed yet. Furthermore, we recorded slightly higher gains from foreign exchange transactions amounting to kEUR 490 for the six months ended June 30, 2020, compared to kEUR 446 in comparative period in 2019.
The changes in foreign currency losses and gains were primarily driven by the valuation of the intercompany loans granted by the parent company to our UK and US subsidiaries.
Operating loss was kEUR 7,476 in the six months ended June 30, 2020, compared to an operating loss of kEUR 6,135 in the comparative period in 2019. This was primarily driven by the significant decrease of gross profit accompanied by slightly higher administrative expenses. This was partially offset by lower operating expenses within the functions sales and marketing and R&D, compared to the six months ended June 30, 2019. The net impact from other operating expenses and other operating income amounted to kEUR 333 negative for the six months ended June 30, 2020, compared to kEUR 295 positive for the six months ended June 30, 2019.
