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ExOne reports mixed first quarter 2016 results

by • May 9, 2016 • No Comments

ExOne (XONE) reported mixed results in the initially quarter of 2016. Year on year net sales increased by over 20%, but gross margin stay yet not great adequate at 22%. The management is working to reduce the cost structure. These efforts were insufficient in the period under review. EBITDA stay significantly negative at -$3.6M.

But a long way to go preceding profitability

ExOne can require to grow significantly its revenues over the future years to become profitable. In the meantime competition is becoming additional aggressive. The company has a high cost structure (over $20M run rate on Selling, Admin and General costs). It is not clear at this moment if the management can hustle additional down on cost reduction.

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The CEO and main shareholder is revealing great assist to the company. He acquired 1.4M shares in the initially quarter at a price of $9 per share. The cash injection combined with a tight control on the cash flow helped the company increasing its net cash during the initially three months of 2016 by $12M, of $19M at end 2015 to $31M.

Based on 16M shares impressive at end March 2016, the current market capitalisation is $170M, giving a market valuation for the company of $140M. This can seem high in light of the loss expected by the company over the future 3 years.

Key financial data:

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