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ExOne postpones 1Q15 report to early June -5

18:34 11-May-15


ExOne has just issues a press release saying it will report on its first quarter in early June, rather than mid-May, as would be typical.  The reason given is unforeseen difficulties with the company's ERP system.  At the same time, the company re-affirmed previous guidance for 2015.

Nonetheless, I see this as a minor fundamental negative.  At the very least, it means there is continued distraction and significant non-productive workload.  Given the admission of material weakness in ExOne's financial reporting in the 2014 Annual Report, the possibility of a restatement of prior quarters continues to exist as well.  That's just about the only thing that could be worse than recent quarterly reports, without outright breaking the law.

Consequently, I would see a mild (5% or less) downward reaction tomorrow as appropriate.  More than that would seem an overreaction, but XONE is prone to that.  This company embodies so much of both the good and bad characteristics commonly seen in development stage companies, that virtually anything is possible.