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ExOne consolidating PSC operations ?2

15:04 30-Jan-17


ExOne has issued a press release which touts a renewed focus on sand-printing and customer interaction.  However, the associated 8-K tells a different story.  The company will record $1.1-1.6M in charges associated with closing down its Las Vegas service center and exiting its finishing operations.  This move was foreshadowed the last time I wrote about the company in conjunction with the 3Q16 earnings.  I've been fairly negative about the prospects since well before that, and XONE has dropped from over $15 to below $10 in the meantime.

Most of this will be non-cash, so this isn't the end of the world, and the company may be able to sell off assets for an estimated $2.5M, though there is no guarantee of that.  Even so, despite the 2% pre-market jump, this isn't the sort of move you'd want to see from what's supposed to be a growth company.  ExOne doesn't report financial results again until late March.  Cost cutting is part of the balance sheet maintenance that I've highlighted as necessary for survival.  We'll see how well or poorly the company is actually managing at that point.