Machine revenue grew 47% to $19.0 million in the fourth quarter of 2018. Revenue growth was primarily driven by an increase in machine volume, as well as favorable product mix. Twenty-eight machines were sold in the 2018 fourth quarter, of which 14 were indirect and 14 were direct printing machines. This compares favorably with 16 machines sold in the 2017 fourth quarter, consisting of nine indirect and seven direct printing machines.
Non-machine revenue (3D printed and other products, materials and services) was down 13% to $6.3 million in the fourth quarter of 2018, compared with the fourth quarter of the prior year. The decrease was primarily due to a lower volume of printing projects at the Company’s direct and indirect service centers, including the impact of the Company’s exit from its Houston facility.
For the year, consolidated revenue grew 12% to $64.6 million, compared with 2017. Machine revenue was up 21% to $36.4 million and non-machine revenue grew 2% to $28.2 million. Machine revenue included sales of 56 machine units in 2018, up 37% from 41 units in 2017.
Given the long sales cycle and significance of a machine’s average selling price relative to total revenue, fluctuations in machine-sale revenue vary from quarter to quarter. ExOne does not believe that such quarter-to-quarter fluctuations are necessarily indicative of larger trends.
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Fourth Quarter Operations – Realizing Production Efficiency and Operating Leverage |
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| ($ in millions, except per-share amounts) | Q4 2018 | Q4 2017 | Change | % Change | |||||||||
| Gross profit | $ | 10.2 | $ | 6.7 | $ | 3.5 | 53% | ||||||
| Gross margin | 40.2 | % | 33.0 | % | |||||||||
| Operating income (loss) | $ | 2.5 | $ | (1.9 | ) | $ | 4.4 | NM | |||||
| Net income (loss) | $ | 2.1 | $ | (2.0 | ) | $ | 4.1 | NM | |||||
| Diluted EPS | $ | 0.13 | $ | (0.12 | ) | $ | 0.25 | NM | |||||
