Machine revenue was $4.0 million in the third quarter of 2019, down from $9.7 million in the prior-year period, impacted by the timing of finalizing installation of five machine projects located at customer facilities. In the 2019 third quarter, nine machines were sold, of which three were indirect and six were direct printing machines. This compares with 15 machines sold in the 2018 third quarter, consisting of seven indirect and eight direct printing machines.
Recurring revenue (3D printed and other products, materials and services) was $6.9 million in the third quarters of both 2019 and 2018. This reflects sequential improvement over the past three quarters as the Company’s indirect printing output improved and its aftermarket offerings continue to accelerate based on growth in its global installed base.
Consolidated revenue for the 2019 year-to-date period was $35.7 million, compared with $39.3 million in the same period of 2018. Machine revenue was down 5% to $16.5 million in the 2019 year-to-date period and recurring revenue decreased 12% to $19.2 million. Machine revenue included sales of 30 machine units in the first nine months of 2019, up from 28 units in 2018, with the variation in machine mix impacting the resulting average selling price.
Given the long sales cycle and significance of a machine’s average selling price relative to total revenue, fluctuations in machine-sale revenue vary from quarter to quarter. ExOne does not believe that such quarter-to-quarter fluctuations are necessarily indicative of larger trends.
| Third Quarter Operations – Impacted by Lower Revenue
(compared with the prior-year period unless stated otherwise) |
|||||||||||||
| ($ in millions, except per-share amounts) | Q3 2019 |
Q3 2018 |
Change | % Change | |||||||||
| Gross profit | $ |
2.9 |
$ |
6.6 |
$ |
(3.7) |
(56%) |
||||||
| Gross margin |
|
26.4% |
|
39.6% |
|||||||||
| Operating loss | $ |
(4.9) |
$ |
(1.1) |
$ |
(3.8) |
(355%) |
||||||
| Net loss | $ |
(4.8) |
$ |
(0.3) |
$ |
(4.5) |
(1400%) |
||||||
| Diluted EPS | $ |
(0.30) |
$ |
(0.02) |
$ |
(0.28) |
(1400%) |
||||||
Gross profit was $2.9 million in the 2019 third quarter. Gross margin was 26.4% compared with 39.6% in the same period of 2018. The 2019 quarter was unfavorably impacted by lower revenue volume.
R&D expense was $2.4 million in the third quarters of both 2019 and 2018. Both periods benefited from efficiencies gained from the 2018 global cost realignment program and improved resource allocation to maintain strong progress in advancing the Company’s technology. These efficiencies are being realized while the Company continues to make machine and material technology advances.
SG&A expense of $5.3 million in the 2019 third quarter was comparable to $5.2 million in the 2018 third quarter. Both periods benefited from the 2018 global cost realignment program.
Net loss for the quarter was $4.8 million, or $0.30 per share, compared with a $300,000 net loss, or $0.02 loss per share, in the third quarter of 2018. Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”)*, a non-GAAP measure, was a $3.7 million loss in the 2019 third quarter compared with $400,000 in last year’s third quarter.
Year-to-Date 2019 Review – Improved Cost Management
|
|||||||||||||||
| ($ in millions, except per-share amounts) | YTD 2019 | YTD 2018 | Change | % Change | |||||||||||
| Gross profit | $ |
10.7 |
|
$ |
10.8 |
|
$ |
(0.1 |
) |
(1% |
) |
||||
| Gross margin |
|
29.8% |
|
27.4% |
|||||||||||
| Operating loss | $ |
(13.7 |
) |
$ |
(15.5 |
) |
$ |
1.8 |
|
12% |
|||||
| Net loss | $ |
(13.1 |
) |
$ |
(14.7 |
) |
$ |
1.6 |
|
11% |
|||||
| Diluted EPS | $ |
(0.81 |
) |
$ |
(0.91 |
) |
$ |
0.10 |
|
11% |
|||||
