Two weeks ago I wrote an article focused on The ExOne Company (NASDAQ:XONE) and in it I mentioned the importance of the expansion of their Production Service Centers (PSCs) for future growth: "In 2012, ExOne's PSC network accounted for 45% of total revenues utilizing just 5 PSC centers. The company plans to expand to 15 PSCs by 2015, and that rapid expansion is why many investors (including this writer) are bullish on the company."
In news out today that set XONE shares up over 6% on heavy volume to trade near their all time highs, management provided positive commentary on their PSC expansion according to FBR Capital analyst Ajay Kejriwal. "ExOne management provided a positive update on the progress of its key initiatives, including the opening up of new PSCs, material development, and progress with its new M-flex platform". Kejriwal also stated "The rollout of the (ExOne) PSC network also appears largely on track."
Key takeaways from FBR Capital today were:
- Positive commentary from several participants with regard to demand trends, with expectations of 25%-30% growth in overall 3D industry printer sales
- A high degree of enthusiasm with regard to metal 3D printing, with chatter around acquisition interest from the larger players in the space (the acquisition announcement by 3D Systems yesterday of Riom, France-based Phenix Systems is indicative of the high interest, and we would not be surprised to see Stratasys follow up with a deal in the space.
- Increasing interest in the aerospace, dental, and orthopedic implant markets as new application developments help drive user demand.
- ExOne has received several inquiries for the M-Flex at both RAPID and the industry event in Brazil last week, and management expects to convert several of these leads into orders.
Hang on 3D Printing investors- we're in for a wild ride.