Materialise NV (NASDAQ: MTLS) stock rose over 19.2% on 9th September, 2020 (Source: Google finance) on better than expected second quarter of 2020 performance. The group’s Revenue from Medical software sales rose 7%, which represents 43% of the segment revenue. June Medical software sales offset 20% decrease of the quarter’s first two months. Materialise Cross-segment revenue from software products rose 9 percentage points contributing 31% of total revenue as a result of single-digit growth in both software and medical software business lines
However, management continues to see the pandemic’s impact on its operations for third quarter, but expect Materialise Medical to gradually pick up in the third quarter of the year. However, Materialise Software and Materialise Manufacturing businesses pressure would continue. During the second manufacturing and Medical Device business fell 31% while just Materialise Medical segment fell 19.3% to €11.7 million. Revenue from Medical Device solutions fell 32% and 29% excluding Engimplan. But Medical Device revenue, excluding Engimplan gradually picked up post June.
In the second quarter of 2020 all of our business units worldwide were significantly impacted by the corona crisis. Our revenue decreased €10.3 million to €38.1 million while adjusted EBITDA declined €1.7 million to €3.4 million. Cash flow from operating activities for the second quarter of 2020 was a strong €7 million compared to €4.7 million for the same period in 2019.
Materialise has cash and cash equivalents of €125.5 million and a short-term debt as of June 30th of this year of €17.8 million and a total gross debt of €121.5 million. They controlled Gross debt amounted to 121,549 kEUR, compared to 127,939 kEUR at December 31, 2019. Accordingly, net cash position increased 2,947 kEUR during the first half year of 2020. Cash flow from operating activities for the second quarter of 2020 improved to 7,053 kEUR compared to 4,760 kEUR for the same period in 2019. Total capital expenditures for the second quarter of 2020 amounted to 3,398 kEUR.