Additive manufacturing OEM ExOne (NASDAQ: XONE) has announced financial results for the fourth quarter and full year 2018.
Attaining a net income goal of $1.8 million for the second half of 2018 ExOne Chairman and CEO, S. Kent Rockwell, stated that the he is pleased with the results and “especially satisfied [with the results] despite some customer delays causing lower than expected revenue.”
Headline revenue for FY2018 was reported at $64.6 million compared to $57.7 million for FY2017. For Q4 2018 revenue was reported at $25.3 million, an increase of 25.25% on Q4 2017 revenue of $20.2 million.
Rockwell adds, “We reached record revenue of nearly $65 million [in FY2018]. That represents about 12% growth over 2017 and a three-year compound annual growth rate of 17%.”
ExOne in 2018
ExOne has over a decade’s experience in additive manufacturing. It is a binder jetting specialist, and markets industrial systems for research labs and the production of end use parts and castings. The company also provides a range of materials for its systems, including qualified 316L stainless steel and silica sand.
FY2018 is Rockwell’s first term as CEO, taking the position after James L. McCarley stepped down in June 2018. In November of the same year, at Formnext, the company introduced the X1 25 PRO. This system brings production capabilities to the company’s successful R&D 3D printer to INNOVENT+.
In relation to the X1 25 PRO launch, and the company’s past 12 months, Rockwell asserts, “We continue to aggressively develop our machine technology and additional materials to satisfy the growing demands of the industrial marketplace for our binder jetting technology applications, while maintaining efficiency with our investment spend.”
Driven by strong 3D printer sales
ExOne revenue is divided into two product lines: “ Machines”, and “3D Printed and Other Products, Materials and Services.” Year on year, Machines continues to drive the company’s revenue growth.
| Revenue | Q4 2018 | Q4 2017 | Variance $ millions | % |
| Machines"}”> Machines | 19.00 | 12.90 | 6 | 47.29% |
| 3D Printed and Other Products, Materials and Services | 6.30 | 7.30 | -1 | -13.70% |
| Total | 25.30 | 20.20 | 5 | 25.25% |
For Q4 2018 ExOne Machines reported a revenue of $19 million, an increase of 47.9% on the same period in 2017 which was $12.9 million. These figures are representative of 28 total unit sales in Q4 2018, and 16 total unit sales in Q4 2017 respectively.
Across the full year 2018, ExOne Machines revenue was reported at $35.4 million, compared to $30 million for FY2017. In turn, these figures are representative of 56 machine unit sales across FY2018, and 41 machine unit sales in FY2017.
| Revenue | FY 2018 | FY 2017 | Variance $ millions | % |
| Machines"}”> Machines | 36.40 | 30.00 | 6 | 21.33% |
| 3D Printed and Other Products,Materials and Services | 28.20 | 27.70 | 1 | 1.81% |
| Total | 64.60 | 57.70 | 7 | 11.96% |
Looking to 3D Printed and Other Products, Materials and Services, revenue for this product line in Q4 2018 was $6.3 million, compared to $7.3 million in Q4 2017. For FY2018, 3D Printed and Other Products, Materials and Services reported revenue of $28.2 million, up 1.81% on FY2017 revenue which was $27.7 million.
ExOne’s goals for 2019
The cost of sales across the whole of FY2018 was $43.7 million, giving the company a gross profit of almost $21 million, and a gross margin of 32.4%.
Net income for FY2018 was reported as a loss of $12.7 million, compared to FY2017’s net loss of $20 million. The company ended the quarter with almost $7.6 million in cash and cash equivalents, compared to $21.8 million in 2017.
Speaking of goals for the next 12 months, Rockwell concluded, “Given the strength of our pipeline and customer interest in our technology, we are targeting revenue growth at increasing rates over each of the next several years.”
“We believe that our new cost structure positions us well for operating leverage that will lead to positive adjusted EBITDA for the full year of 2019 and beyond. As is typical for the first quarter of our year, we expect a slow start to 2019 and we currently estimate about a 35/65 revenue split between the first half and second half of the year.”
The full financial results for ExOne’s Q4 and FY2018 is available here.
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Featured image shows a miniature 3D printed Hogwarts Castle on the tip of pencil made using the ExOne Innovent. Photo via ExOne
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