Geo Week News

May 15, 2013

3D printer maker's stock drops 16% on Q1 results


ExOne Co. sells four 3D printers during first quarter but operating costs yield loss

Investors Wednesday hammered shares of ExOne Company, a maker of 3D printing machines and printed products for industrial customers, sending the stock down nearly 16 percent to $40.16 at the opening bell before it rebounded to hover near the $44 per share range, where it remained, until closing at $41.15.

The company reported Tuesday higher operating expenses led to a first quarter loss of $1.9 million, or $0.20 per share, despite the jump in revenue, thanks to the sale of four 3D printers during the period. None were sold in the first quarter of 2012.

Based in Huntingdon, Pa., ExOne (Nasdaq: XONE) reported sales for the quarter ended March 31 of $7.9 million, compared with revenue of $2.7 million for the first quarter of 2012, when the company was still private.

Analysts’ expectations pegged first quarter results at a net loss of $0.19 per share on sales of $8.6 million.

ExOne stock was trading at $41.25 just after the opening bell Wednesday, down nearly 16 percent. The stock closed Tuesday at $48.60 up $4.24, but in pre-market trading Wednesday shares dropped as low as $43.24, down more than 11 percent.

The company’s shares debuted in February at $18 per share. Its 52-week stock price ranges from $23.50-$49.11. The company has a market capitalization of $645.5 million billion.

“We continue to be very encouraged with the opportunities that present themselves for our 3D printing capability,” said CEO S. Kent Rockwell. “Nonetheless, as a global company we are subject to the vagaries of the economies in which we operate. The weakness in Europe has slowed the purchase decisions of our customers in that region, while customer demand in Japan is clearly strengthening with the economy. And in North America, we also received our first order for an M-Flex machine in the quarter.” 

Rockwell said the company is advancing its growth strategy, including the expansion of its manufacturing capacity in Germany.

“There has been increasing interest of additive manufacturing among global industrial manufacturers,” the company said.

First quarter machine revenue, including 3D printers and laser printers, of $4.2 million represented 53 percent of total sales in the first quarter, ExOne said.

Revenue from printing services in the first quarter was up 35 percent, or $1 million, over the prior-year first quarter.

Operating loss for the first quarter of 2013 was $1.6 million compared with an operating loss of $1.4 million in the first quarter of 2012 due to higher operating expenses.

First quarter EBITDA was a loss of $0.9 million in the first quarter of 2013, improved from a loss of $1 million in the first quarter of 2012.

ExOne said it expects 2013 revenue of $48 million – $52 million, 66 percent of which expected in the last two quarters. And, approximately $40 million to $50 million in growth investments are planned for 2013 and 2014.

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