Machine revenue was $10.7 million in the fourth quarter of 2019, down from $19.0 million in the prior-year period, impacted by the timing of delivery and installation of machines, in particular new product introductions in the 2019 fourth quarter. In the 2019 fourth quarter, 14 machines were sold, of which 11 were indirect and three were direct printing machines. This compares with 28 machines sold in the 2018 fourth quarter, consisting of 14 indirect and 14 direct printing machines.
Recurring revenue (3D printed and other products, materials and services) was $6.8 million in the fourth quarter of 2019, up from $6.3 million in the prior-year period. The 2019 quarter reflects stability shown in the second half of 2019, with growth in the Company’s aftermarket offerings driven by an increasing global installed base of machines and contribution from a new research and development contract with an automotive manufacturer.
Consolidated revenue for 2019 was $53.3 million, compared with $64.6 million in the same period of 2018. Machine revenue was down 25% to $27.2 million in 2019 and recurring revenue decreased 8% to $26.1 million. Machine revenue included sales of 44 machine units during 2019, down from 56 units in 2018.
Given the long sales cycle and significance of a machine’s average selling price relative to total revenue, fluctuations in machine-sale revenue vary from quarter to quarter. ExOne does not believe that such quarter-to-quarter fluctuations are necessarily indicative of larger trends.
Fourth Quarter Operations – Impacted by Lower Revenue |
||||||||||||||||
(compared with the prior-year period unless stated otherwise) |
||||||||||||||||
| ($ in millions, except per-share amounts) | Q4 2019 |
|
Q4 2018 |
|
Change |
|
% Change |
|||||||||
| Gross profit | $ |
6.8 |
|
$ |
10.2 |
|
$ |
(3.4 |
) |
(33 |
%) |
|||||
| Gross margin |
|
38.6 |
% |
|
40.2 |
% |
||||||||||
| Operating expenses (R&D, SG&A) | $ |
8.2 |
|
$ |
7.7 |
|
$ |
0.5 |
|
6 |
% |
|||||
| Net (loss) income | $ |
(2.0 |
) |
$ |
2.1 |
|
$ |
(4.1 |
) |
NM |
||||||
| Diluted EPS | $ |
(0.12 |
) |
$ |
0.13 |
|
$ |
(0.25 |
) |
NM |
||||||
Gross profit was $6.8 million in the 2019 fourth quarter. Gross margin showed strength at 38.6% despite the lower revenue, compared with 40.2% in the same period of 2018. The 2019 quarter was unfavorably impacted by lower revenue volume, partially offset by higher pricing on machine sales.
