Sigma Additive reports decreased sales for 2022, restructuring in progress
April 11, 2023
Sigma Additive Solutions, Inc, Santa Fe, New Mexico, USA, has reported its financial and operational results for the fourth quarter and full year ended December 31, 2022. Revenue for the full year of 2022 totaled $0.63 million, compared to revenue of $1.7 million in 2021. Net loss for the full year of 2022 was $8.7 million, or $0.83 per share, as compared to a net loss of $7.5 million, or $0.76 per share in 2021.
Total operating expenses for 2022 were $9.0 million, compared to $9.6 million in 2021, a decrease of 5.7%. This was primarily attributable to a decrease in stock-based compensation, a decrease in operating and research and development costs, partially offset by increases in salary and benefits, office expenses, and increased business travel.
The year’s revenue decrease was primarily attributed to fewer perpetual license PrintRite3D® unit sales, and a decrease in contract Additive Manufacturing. Partially offsetting these decreases were an increase in revenues from the subscription-based pricing programme, the legacy Rapid Test and Evaluation (RTE) programme, on-site installation and support, consulting services, and annual maintenance contracts.
“We have listened to the market and our customers,” stated Jacob Brunsberg, president and Chief Executive Officer of Sigma. “The prior business model that depended on hardware retrofits did not meet the cost needs of the market and did not provide a scalable structure for Sigma. We have moved quickly to provide more cost effective integrated and software-only solutions that we believe significantly lower our barriers to entry and provide a faster path to scalability of connected quality solutions for the market.”
“Years ago, this may have not been possible,” he continued. “With the recent opening of system architectures and API connectivity, we have a path to provide critical software-only quality solutions that connect more broadly and uniformly to the industry. We continue to work with standards organisations and have formalised collaborations with OEMs, scanner manufacturers, and synergistic software providers to provide channels to deliver these solutions.”
Gross profit for the full year of 2022 was $0.3 million, compared to gross profit for the full year of 2021 ($1.1 million); gross margin for the full year of 2022 was 44% compared to gross margin of 66% for FY2021. The gross margin decrease was primarily driven by an increase in the price of certain PrintRite3D system components as a result of configuration changes and discounted sales to universities & research institutions as members of its AcGovDustrial Network.
THE WORLD OF METAL AM TO YOUR INBOX
Subscribe to our twice-weekly newsletter
Brunsberg added, “Aligning around our future product path, we have added a space customer that is contributing to our product council feedback, added our first automotive customer, and have planned multi-site expansion at a key aerospace customer that connects us to another OEM. This OEM integration work is bearing fruit as we have our first customer targeted to implement a software-only OEM API connected suite in Q2 aligning with our software-only product launch schedule.”
“Looking ahead, we continue to move with urgency in our business transition to put ourselves in position to be the home for connected digital quality to support qualification and production across thousands of machines at hundreds of customer sites,” he said.
Sigma also expanded collaborations for connected software solutions with Materialise and Dyndrite. It also expanded its collaborations for connecting with market hardware with DyeMansion, Novanta, EOS, and SLM Solutions.
The company also reduced operating expenses in an effort to align with its path to profitability, including largest cost, salary expense, by 40% from April 2022, while retaining key employees and better aligning the business to a software-scaling model. The company also expanded its number of granted patents to twenty-nine, with an additional forty patent applications in-process by the end of 2022.
“We continue to track key performance indicators (KPIs) to monitor the progress and execution of our new business plan,“ Brunsberg said. “During the quarter, we established key relationships that are important to our path to grow our software-only solutions targeted for release in Q2 2023. These collaborations are opening paths to market and increasing total addressable market, two things that drive the growth potential of the company.”
He added, “We see our focus on this and other KPIs as critical to achieving our business plan over the next two years. During the quarter we continued to make progress on our subscription model and transition to software-only product options to support the additive industry as a whole, making Sigma accessible at scale for supporting qualification and production across thousands of machines at hundreds of customer sites.”