Sigma Additive Solutions, headquartered in Santa Fe, New Mexico, USA, has reported its financial and operational results for the second quarter ended June 30, 2022. Revenue increased from $51.8K in Q1 2022 to $237K in Q2, and there has been an increase of total qualified opportunities from 134 in the second half of 2021 to 250 in the first half of 2022 (+87%).
“We are tracking the following key performance indicators (KPIs) to monitor the progress and execution of our new business plan: (1) revenue growth; (2) order backlog; (3) pipeline growth; (4) deal closure time reduction; and (5) partner expansion,” stated Jacob Brunsberg, president and CEO of Sigma. “These are the KPIs we see as critical to achieving our business plan over the next two years. To be clear, we are focused on moving away from only selling an individual printer solution, to supporting the additive industry, as a whole, at scale.”
The current order backlog for the third quarter is total revenue of $240,000, which consists of a mix of subscriptions and perpetual sales, and remaining revenue to be recognised related to year-to-date 2022 transactions is approximately $30,000. Increase in forecasted closures from 19 deals to 40. With adjustments to strategy and product roadmap in the first half of 2022, the sales cycle is reported to have shifted from 12-18 months down to an average of 6 months over the last nine deals.
Revenue for the second quarter of 2022 totalled $236,660 compared to $144,148 for the second quarter of 2021, attributed primarily to increased PrintRite3D® unit sales, revenue from subscription sales, revenue recognised from installations related to previous year sales, as well as an increase in annual maintenance contract renewals in the second quarter of 2022 compared the second quarter of 2021.
Gross profit for the second quarter of 2022 was $43,585, which resulted in a gross margin of 18% as compared to $27,751, or 19%, in the second quarter of 2021. Operating expenses for the second quarter of 2022 were $2.3 million as compared to $2.2 million for the same period in 2021. The increase in operating expenses was mainly attributable to additional employee headcount and office expenses, in particular increased travel costs.
Cash used in operating activities for the six months ended June 30, 2022 totalled $4.3 million compared to $3.3 million in the first half of 2021, an increase of $1 million. Net loss for the second quarter of 2022 was $2.3 million, or $0.22 per share, as compared to a net loss of $1.8 million, or $0.18 per share, in the second quarter of 2021.
In the second quarter, the company began doing business as Sigma Additive Solutions, reflecting a strategic initiative to deploy technology on thousands of Additive Manufacturing production machines and began trading under the ticker symbol ‘SASI’. This quarter also saw the appointment of Jacob Brunsberg as president and CEO and the addition of amace Solutions Pvt. Ltd. to the Sigma OEM Partner Network.
“Since implementation of our new business model in the first quarter, revenue is beginning to show growth aligned with feedback we are getting from the market that our product adjustments and approach are better aligned with customer needs,” added Brunsberg. “We believe a revenue tail is beginning to develop that will help us increase our foundational level and begin to make revenue more predictable over time, with a current backlog of orders which consists of a mix of subscriptions and perpetual sales.”
“Looking ahead, we believe our new subscription model and transition to software-only product options make Sigma accessible at scale for supporting qualification and production across thousands of machines at hundreds of customer sites. We are seeing solid pipeline growth, with 87% increase of total qualified opportunities from the second half of 2021 to the first half of 2022,” Brunsberg continued. “Our goal is to dramatically lower the barriers to entry for the Additive Manufacturing industry and enable end users to expand their use of industrial 3D printing at a lower cost with higher quality results. We seek to significantly impact the entire AM quality continuum with scalable solutions that improve machine, process, and part quality. I look forward to providing additional updates in the months to come on our progress.”