ExOne Co (NASDAQ:XONE)a global provider of 3D printing machines and three-dimensional printed and other materials, products and services to industrial clients announced financial report for 3Q2015. Consolidated sales for 3Q2015 came at $8.9 million.
ExOne stated that non-machine revenue surged 20% to $6.5 million, highlighting 28% growth excluding the impact of fluctuation in foreign currency exchange rates. The consolidated sales in reported period were adversely impacted by nearly $0.5 million due to volatility in foreign currency exchange rates.
The management speaks
Kent Rockwell, the Chief Executive Officer and Chairman, said that the performance reporting is formed of two revenue streams. These two different streams are non-machine revenue and the lease and the sale of direct and indirect printing machines. The non-machine revenue includes the sustaining operation of machines in customers’ shops and company’s PSCs.
ExOne CEO further added that non-machine revenue has been performing consistently, recording good growth on an international basis. As overall revenue climbs and PSCs grow services output provided, the incremental margins will add to overall performance goals.
The highlights
Mr. Rockwell said that machine sales growth prospects remain extremely encouraging for ExOne and they continue to be positive about their measures to establish a leading market position over time. However, the complex revenue recognition system for certain of company’s technology and products and customers’ delivery scheduling have proven to be erratic for management to timely project on a QOQ basis.
As ExOne Co (NASDAQ:XONE) transitions from the sale of prototyping machines to that of production machines, the time required for customer acceptance and installation is prolonged because of the application-specific requirements. Such client sales cycles continue to vary between thirty days to fifteen months, depending on the system installation requirements. It does not comprises time invested with clients before contract commitment. The promising aspect is that the company is achieving consistent client satisfaction from more demanding set-ups.
