The ExOne Company, North Huntingdon, Pennsylvania, USA, has released its financial results for the fourth quarter and year ended December 31, 2019. Revenue for the fourth quarter was $17.5 million, the highest quarter in 2019 but down from the company’s record fourth quarter a year ago of $25.3 million.
The consolidated revenue for 2019 was $53.3 million, compared with $64.6 million in the same period of 2018. The decline was reportedly due to ongoing global manufacturing softness and the timing of machine installations, which deferred ExOne’s revenue recognition. For the fourth quarter, there was a reported net loss of $0.12 per share and slightly positive Adjusted EBITDA.
“Based on the strength of our new product lineup, machine orders intensified during the fourth quarter, driving our backlog to an all-time record — more than double our year-end 2018 backlog,” stated John Hartner, ExOne CEO. “While fourth quarter revenue fell short of expectations, we are strongly encouraged by order activity and a surge of interest in our technology. Our fourth quarter revenue shortfall was largely associated with the timing and duration of new model machine installations.”
Gross profit was $6.8 million in the 2019 fourth quarter with gross margin showing strength at 38.6% despite the lower revenue, compared with 40.2% in the same period of 2018. The 2019 quarter was impacted by lower revenue volume, partially offset by higher pricing on machine sales. R&D expense was $2.5 million in the fourth quarter of 2019, up 9% from $2.3 million in the same period of 2018. The increase was primarily due to material costs associated with the introduction of the S-Max Pro and X1 25Pro units in the 2019 quarter.
Net loss for the quarter was $2 million, or $0.12 loss per share, compared with $2.1 million of net income, or $0.13 of earnings per share, in the fourth quarter of 2018. Adjusted earnings before interest, taxes, depreciation and amortisation (Adjusted EBITDA), a non-GAAP measure, was approximately $35,000 in the 2019 fourth quarter compared with $4.2 million in last year’s fourth quarter.
Hartner added, “Macroeconomic concerns and the effect of the coronavirus are impacting the timing of customer decision-making. Nonetheless, we are encouraged by the strength of our backlog and customer acceptance of our new products. Our active pipeline of opportunities gives us optimism for growth in 2020. We remain focused on advancing our Binder Jetting technology and driving profitable growth.”