Machine revenue was $9.3 million in the second quarter of 2019, nearly three times the prior-year period, benefiting from growth in unit sales and machine platform mix. In the 2019 second quarter, 13 machines were sold, of which seven were indirect and six were direct printing machines. This compares with seven machines sold in the 2018 second quarter, consisting of two indirect and five direct printing machines. The increase in unit sales is indicative of accelerating customer adoption.
Recurring revenue (3D printed and other products, materials and services) was $6.0 million in the second quarter of 2019, compared with $7.6 million in the second quarter of 2018. 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 first half of 2019, consolidated revenue grew 9% to $24.9 million, compared with the first half of 2018. Machine revenue was up 62% to $12.6 million and recurring revenue decreased to $12.3 million. Machine revenue included sales of 21 machine units in the first half of 2019, up 62% from 13 units in 2018.
Given the long sales cycle and significance of a machine’s average selling price relative to total revenue, fluctuations in machine-sale revenue vary from quarter to quarter. ExOne does not believe that such quarter-to-quarter fluctuations are necessarily indicative of larger trends.
| Second Quarter Operations – Demonstrating Improvement in Operating Model | ||||||||||||||
(compared with the prior-year period unless stated otherwise) |
||||||||||||||
| ($ in millions, except per-share amounts) | Q2 2019 |
Q2 2018 |
Change |
% Change |
||||||||||
| Gross profit | $ |
5.1 |
|
$ |
1.6 |
|
$ |
3.5 |
223 |
% |
||||
| Gross margin |
|
33.7 |
% |
|
14.6 |
% |
||||||||
| Operating loss | $ |
(3.6 |
) |
$ |
(8.0 |
) |
$ |
4.4 |
55 |
% |
||||
| Net loss | $ |
(3.8 |
) |
$ |
(8.0 |
) |
$ |
4.2 |
53 |
% |
||||
| Diluted EPS | $ |
(0.23 |
) |
$ |
(0.50 |
) |
$ |
0.27 |
54 |
% |
||||
Gross profit was $5.1 million in the 2019 second quarter, a record level for any second quarter in ExOne’s history. Gross margin significantly expanded to 33.7% from 14.6% in the same period in 2018. The 2019 quarter benefited from improved operating leverage on higher volume, as well as a reduction in fixed costs resulting from the 2018 global cost realignment program. The 2018 quarter was unfavorably impacted by a $0.6 million inventory charge.
