Seeking Alpha

ExOne -12.8% AH on Q1 miss, margin pressure

  • Though ExOne (XONE) is reiterating guidance for 2014 revenue of $55M-$60M (consensus is at $57M), the Street's reaction to the company's big Q1 miss suggests it's highly skeptical.
  • 2014 gross margin guidance has been lowered to 40%-43% from 43%-46%. SG&A, R&D, and capex guidance (previous) has been reiterated.
  • Only 3 printers were sold in Q1, down from 12 in seasonally strong Q4 and 5 a year ago. 1 high-end S-Max printer was sold vs. 3 in Q4 and 2 a year ago.
  • One bright spot: Sales of 3D-printed products, materials, and other services rose 32% Y/Y to $4.9M.
  • Gross margin fell to 22.2% from 30.9% in Q4 and 35.8% a year ago. ExOne says development costs related to its ExCast (aims to cover each part of the additive manufacturing process for industrial clients) hurt GM.
  • SG&A spend rose 46% Y/Y to $5.2M. R&D spend rose 115%, but still only totaled $1.8M.
  • Q1 results, PR
Comments (2)
  • Izzy1
    , contributor
    Comments (179) | Send Message
     
    XONE will die a slow death. Either SSYS or DDD should take a look at acquiring it. Margins down in the low 20s. They cannot make money with 22% margins. SSYS has margins of 61%. No need to spend time on this dog. The real problem is sales less then $60 million. A few fast food franchises could do $60 million. How in the world did they launch an IPO
    14 May, 05:12 PM Reply Like
  • djkidm
    , contributor
    Comments (364) | Send Message
     
    $XONE is on its way to < $18. There's no stopping it now :)
    14 May, 08:57 PM Reply Like
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