R&D expense of $2.7 million for the quarter was up $0.6 million compared with the 2016 fourth quarter, attributable to internal talent additions, external resources to accelerate technology, and IP development.
SG&A expense was $5.8 million compared with $5.5 million in the prior-year quarter. The increase included higher commissions, as well as internal talent and external resources to advance technology adoption.
The 2017 fourth quarter net loss was $1.9 million, or $0.12 per share, compared with a $2.6 million net loss, or $0.16 per share, in the fourth quarter of 2016. The improved net loss was principally due to higher revenue, partially offset by lower profitability relating to new products and technology releases as well as accelerated technology investments.
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), a non-GAAP measure, was a $0.1 million loss in the 2017 fourth quarter, compared with a $0.7 million loss in last year’s fourth quarter. ExOne management believes that, when used in conjunction with other measures prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), Adjusted EBITDA assists in the understanding of its financial results. See the attached tables for important disclosures regarding the Company’s use of Adjusted EBITDA as well as a reconciliation of net loss (most directly comparable GAAP measure) to Adjusted EBITDA for the quarters ended December 31, 2017 and 2016.
2017 Review – Revenue Growth Offset by Costs for Operational Advancement
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($ in millions,
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2017 | 2016 | Change | % Change | ||||||
| Gross profit | $14.4 | $14.2 | $0.2 | 2% | ||||||
| Gross margin | 24.9% | 29.6% | ||||||||
| Operating loss | ($19.7) | ($14.4) | ($5.3) | (37%) | ||||||
| Net loss | ($20.0) | ($14.6) | ($5.4) | (37%) | ||||||
| Diluted EPS | $ (1.25) | $ (0.92) | $ (0.33) | (36%) | ||||||
