The ExOne Company, North Huntingdon, Pennsylvania, USA, has reported financial results for the first quarter ended March 31, 2021, with a revenue of $13 million, a decrease of 3% from a record year-ago quarter, largely due to COVID-19-related installation challenges.
The decrease was driven by a 22% decrease in revenue from Additive Manufacturing machines as a result of a decrease in volumes (fourteen units in Q1 2020 compared to seven in Q1 2021) offset by a favourable mix of metal AM machines sold, with increased sales of the X1 25Pro machine in Q1 2021. However, the decrease in AM machine revenue was offset by an increase in recurring revenue (additively manufactured and other products, materials and services) of 15% compared to the year-ago period, led by an increase in revenue from funded R&D services, largely in support of future production metal equipment sale opportunities, as well as aftermarket revenue associated with the company’s global installed base of AM machines.
“The ExOne team is pleased to report record levels of both recurring revenue and machine order backlog, which shows the strength of our product offerings, adoption model, and momentum,” stated John Hartner, ExOne’s CEO.
He added, “While our first-quarter results reflect the difficult operating environment that continues to persist as a result of COVID-19, we are seeing signs of an economic rebound, particularly in the U.S. market where we saw a higher concentration of sales and backlog growth during the first quarter. We look forward to entering the post-pandemic period with new tailwinds as manufacturers look to de-risk supply chains and improve the sustainability of their products with new designs that require our industrial 3D printing solutions to execute.”
The company’s gross margin was 15.4%, compared to 27.1% in the first quarter of 2020. The decrease was primarily due to the continued impact of operating inefficiencies and challenges driven by the COVID-19 operating environment, including unfavourable product warranty experience, as well as low contribution margin on X1 25Pro system sales following their initial introduction to the market.
Research and development expenses were $2.6 million, compared to $2.5 million in the first quarter of 2020. The increase was primarily due to additional material costs associated with systems and materials development of Binder Jetting technology. This includes the planned introduction to the market of the X1 160Pro production metal AM machine and InnoventPro advanced entry-level metal AM system in 2021, with inert atmosphere processing capabilities for the X1 160Pro for high-value reactive materials to be introduced in 2022.
Adjusted earnings before interest, taxes, depreciation and amortisation EBITDA, a non-GAAP measure, was a loss of $5.2 million, compared with a loss of $3.8 million in the first quarter of 2020. Cash, cash equivalents and restricted cash as of March 31, 2021, increased to $138.3 million, from $50.2 million on December 31, 2020. The increase was driven by cash inflows from financing activities of $95.3 million, primarily as a result of an underwritten public offering of common stock completed in February 2021.
Hartner concluded, “With signs of a broader economic recovery on the horizon, a record contractual backlog and expanded product portfolio and distribution network, we see the remainder of 2021 as the beginning of our next phase of growth. While there are still some remaining execution challenges as a result of COVID-19, particularly in Europe and Asia, we feel confident that our operating plan for 2021 is well supported. In addition, our improved liquidity position gives us the ability to strategically invest in additional growth opportunities.”