Nov.20, 2013

In a report published Wednesday, short-seller Citron Research questioned voxeljet AG's quarterly results, saying the Germany-based 3D printer maker provided loans to customers to generate sales and avoid posting a loss in its first results as a public company.

Shares of voxeljet (NYSE: VJET), which went public in a rousing debut last month, plunged as much as 32 percent on Wednesday.

Voxeljet makes large 3D printers for prototyping and counts Daimler AG, Ford Motor Co and 3M Co as customers. The company's printers were used to make three Aston Martin DB5 model cars for the latest James Bond film, "Skyfall".

Last Thursday Voxeljet issued its first quarterly report since going public little over a month ago. Although Voxeljet reported an EPS profit of 0.11c EUR per ADS, Citron pointed out Voxelje's 4.76 million USD reveue was driven by the sale of just 3 units of its million dollar 3D printers.

Citron noticed that the fine print of the quarterly report noted that zero printers were sold at fair market value and the "company's only system sales were transacted with loans went completely unmentioned on the company's triumphant conference call."

"We're not even sure such sales qualify as revenue ... that would depend on who the parties are and the collectability of the receivables, but why ruin a good bubble," Citron said.

Citron then discovered that the SEC contacted the company asking if the provided loans are offered to other or prospective customers. Voxeljet replied that they do not usually offer loans and do not have a formal loan program.

Citon research interpreted this as, "So … we don't ordinarily make loans to allow customers to buy our printers, except when its 100% of our systems revenue in our first reported quarter as a public company."

"VJET is the winner in Wall Street's race to the bottom," Citron said. "It's not even a company, it's just a hobby."

Citron set a fair price target of $12.09 on voxeljet's American depositary share.

Short sellers such as Citron make money when the stock price of a company drops. They sell borrowed shares in the hope of buying them back at a lower price and return them to the lender, and gain from the difference in price.

Posted in 3D Printing Company



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Believer wrote at 12/9/2013 2:28:16 AM:

Citron ought to be banned from commenting on anything. Useless bunch of idiots

Bogdan wrote at 11/21/2013 10:52:51 AM:

This seems just like a dirty dirty attack to me

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