The ExOne Company, North Huntingdon, Pennsylvania, USA, has released its financial results for the second quarter and first half ended June 30, 2017. While the results for the quarter were reportedly impacted by timing, with $2.8 million of revenue carried over into the third quarter by one day, the first half of 2017 has seen Additive Manufacturing (3D Printing) machine sales growth of 22% over the first half 2016.
The company reported sales of $10.8 million for Q2 2017 compared to $11.8 in Q2 2016, with one less machine sold in Q2 2017 than in the same period 2016. However, total H1 sales were reported at $21.7 million, an increase of 7% on $20.2 million in H1 2016.
Machine revenue was $8.5 million in H1 2017, compared to $7 million in H1 2016. Excluding approximately $0.8 million in product lines discontinued after Q2 2016, non-machine revenue grew by 6%, due to an increase in sales from the company’s Production Service Center and ExOne Adoption Center. According to the company, this is evidence of increasing customer acceptance of Binder Jet Additive Manufacturing.
Gross profit for Q2 2017 was $2 million, down 42% from $3.5 million in Q2 2016. Quarterly profit was reportedly impacted by a $1.5 million charge for obsolete inventories, slightly offset by $0.3 million in net gains from the disposal of property and equipment related to the company’s consolidation and exit from North Las Vegas, Nevada, USA.
The company also reported R&D expenses of $2.3 million for the quarter, an increase of $0.4 million on Q2 2016, and stated that it expects higher R&D investment levels to continue throughout 2017 but decline as a percentage of sales. Net loss for the quarter was reported at $6.4 million, an increase of 118% from $2.9 million in Q2 2016.
ExOne’s gross profit for H1 2017 was reported at $3.6 million, down 33% on $5.4 million for H1 2016. This was reportedly due to the aforementioned obsolete inventory charges. Following these results, ExOne revised its 2017 revenue outlook modestly from 25% growth to 20-25% growth, due to continued unfavourable impact predicted from discontinued lines.
“Our operating results for the quarter include investments we are making in our technology, people, and processes to continue the advancement of binder jet technology in the marketplace,” stated Jim McCarley, ExOne CEO. “Based on our continuing progress, we expect these efforts will significantly improve our future financial performance. We remain confident in our strategic direction and in our pipeline of projects with both new and repeat customers.”