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2018 Q2 revenue of $10.9 million; orders on track for full year
2018 revenue growth in excess of 20%
- Machine revenue of $3.2 million
- Non-machine revenue up 17% to $7.7 million
- Backlog expanded to $26.6 million at quarter end
- Reiterating goal of achieving net income and positive operating cash flow in 2019
NORTH HUNTINGDON, Pa. — (BUSINESS WIRE) — August 9, 2018 — The ExOne Company (NASDAQ: XONE) (“ExOne” or “the Company”), a global provider of three-dimensional (“3D”) printing machines and 3D printed and other products, materials and services to industrial customers, reported financial results today for the second quarter and first half year ended June 30, 2018.
S. Kent Rockwell, ExOne’s Chief Executive Officer, stated “Our financial performance in the second quarter and first half was less than anticipated. While order flow and deliveries to customers were strong, our recognition of machine revenue was unfavorably impacted by timing of installation and customer acceptance of our printers. We have seen good growth in machine and non-machine order activity which we expect will substantially enhance second half performance in meeting our full year revenue growth rate in excess of 20%. Historically we have experienced machine revenue cadence of approximately 30% of annual machine revenue in the first half of a year and 70% in the second half. We believe that the momentum of our recent and expected orders will drive machine revenue to approximately 80% of annual machine revenue in the second half of 2018.”
He continued, “During the quarter we sold the first unit of our newest direct 3D printing machine platform, the Innovent+. Based on our Innovent platform, it is enhanced with our new ultrasonic recoater, which is designed for material flexibility and ease of use. The new machine also features increased materials handling capabilities. In addition, the development of our new large format fine powder direct printer is planned for customer delivery of units in the second half of 2019.”
Mr Rockwell added, “Expenses associated with our leadership changes, global cost realignment program and inventory charges impacted our second quarter results. Our global cost realignment program has been designed to remove excess costs throughout our organization, improving efficiency without impacting the pace or extent of our technological goals. To date, we have implemented or targeted more than $6 million of annualized cost reductions. More savings will be effected during the balance of this year with an overall goal of cost savings of approximately $10 million in 2019, as compared with 2018. Our research and development activities remain vigorous, and we now estimate that our 2018 R&D expenses will exceed 2017 by approximately $4 million. With cost reductions and improving revenues, we expect our operating cash flow to stabilize in the second half of this year.”
Second Quarter and First Half Revenue – Non-Machine Revenue Up 17% and 14%, Respectively
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||||||
| (in millions) | 2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||||||||||
| Revenue by Product Line | ||||||||||||||||||||||||||||||
| 3D Printing Machines | $ | 3.2 | 30 | % | $ | 4.3 | 39 | % | (25%) | $ | 7.7 | 34 | % | $ | 8.5 | 39 | % | (9%) | ||||||||||||
| 3D Printed and Other Products, Materials and Services | 7.7 | 70 | % | 6.5 | 61 | % | 17% | 15.1 | 66 | % | 13.2 | 61 | % | 14% | ||||||||||||||||
| Total Revenue | $ | 10.9 | 100 | % | $ | 10.8 | 100 | % | 1% | $ | 22.8 | 100 | % | $ | 21.7 | 100 | % | 5% | ||||||||||||
