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ExOne 3Q16 results ?3

09:34 10-Nov-16


ExOne reported financial results for its third quarter:

The conference call has just concluded. It was lightly attended by analysts and short.  Results are improving, but the company is paying for earlier missteps and has a long road ahead. 

Specifically, ExOne will not reach break-even this year.  Although management predicts reaching this goal next year, analysts questioned that, and management was unable to provide details.  Projections are to reduce cash burn to ~$1M per quarter going forward, which is significant, as it would give the company a much longer runway.

Operationally, the company did manage to sell more machines, including, finally, another Exerial, as well as four S-Max machines.  Three more machines were ordered by a global manufacturer, an are expected to ship in 2017.  However, the company also saw continued pricing concessions on the materials that it sells.  Management is spinning this as being done to increase adoption, but refused to give any details at all on volumes or pricing breakdowns across products. 

Management is also looking at consolidating facilities, and reforming the business in the effort to cut costs, which looks bad given that this was a massive investment that was just made and apparently will not be garnering the hoped for results.  All-in-all new management is presenting better, and probably taking the right steps, but I don't see anything to get all that excited about here just yet.