Materialise NV (NASDAQ:MTLS) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 08:30 am ET
[Operator Instructions] Your first question comes from the line of Jason Celino from KeyBanc. Your line is open.
Good to hear from everybody.
A couple of questions for me. Based on your qualitative commentary, it sounds like you expect Q3 to be even more impacted. So are you suggesting that 2Q is not the trough and in the growth -- in trends we're seeing?
Yes. We clearly indicated that the industrial sectors are still suffering very heavily at this moment, especially in Europe, under the economic consequences of the corona crisis. During Q2, we had a few elements that work in our favor. For instance, we had some work in process to finish that we could invoice during Q2. Our pipeline is now emptier than it was at the beginning of April. Secondly, the -- yeah, another beneficial effect that we experienced, and as we mentioned in our presentation, is the effect of the deferred software sales that we benefited from in the second quarter and that will be less pronounced in the third quarter. We anticipate that the -- yeah, that we might see a better September month. But especially in Europe, we see that a lot of companies are maximizing their holiday periods at this moment. And then so this is really very little business.
Okay, great. Thank you. And more kind of a broader question. I know things are quite impacted right now, but we've been hearing a lot of traditional companies, automotive, aerospace, other traditional industries accelerate digital initiatives. Do you think that? How do you think Materialise plays into that type of trend?
As we expressed, clearly, we really see some opportunities for Materialise in this context. Although at this very moment, people are setting up their plans and these plans are not yet converted into investments, they keep -- yeah given the difficult economic situation, they keep their money still close to chest. And -- but we expect again that this situation may, will on out of -- as we slowly climb out of it.
Great. Thank you. I appreciate the questions.
Thank you, Jason.
[Operator Instructions] Your next question comes from the line of Gregory Ramirez from Bryan Garnier. Your line is open.
Yes. Good afternoon, and thank you for picking our questions. Two if I may. The first one is regarding the medical division. Just a clarification regarding elective surgery. Has it -- you say that it is recovering gradually, but do we have to assume that from June and July, the medical device business for you is growing again? And when do you think -- if things stay as they are currently, when do you think that the growth would be back to double-digit or the mid-teens as it used to be before the crisis? And my second question is regarding the cost management, pretty good job on it. But have you change, I would say, -- have you changed the way to manage your took costs? You took April