R&D expense of $2.5 million for the quarter was down $0.7 million, or 22%, compared with the 2018 second quarter, primarily from efficiencies gained from the 2018 global cost realignment program and improved resource allocation to maintain strong progress in advancing the Company’s technology. These reductions were partially offset by increased material costs associated with development of the recently announced X1 25PRO™ and S-MAX Pro™.
SG&A expense of $6.2 million in the 2019 second quarter was down $0.2 million, or 3%, compared with the 2018 second quarter, benefiting from the 2018 global cost realignment program. These reductions were partially offset by a change of approximately $0.6 million of increased equity-based compensation associated with the changes in executive management as well as approximately $0.5 million of incremental costs associated with trade show activities including the GIFA trade fair in the 2019 second quarter, an international show that occurs once every four years.
Net loss for the quarter was $3.8 million, or $0.23 per share, compared with an $8.0 million net loss, or $0.50 loss per share, in the second quarter of 2018. The $4.2 million improvement was driven primarily by the increase in revenue, favorable machine platform mix and the Company’s new operating model.
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA*”), a non-GAAP measure, was a $1.7 million loss in the 2019 second quarter, reflecting significant improvement compared with a $6.7 million loss in last year’s second quarter.
| First Half 2019 Review – Realizing Production Efficiency and Operating Leverage | ||||||||||||||
(compared with the prior-year period unless stated otherwise) |
||||||||||||||
| ($ in millions, except per-share amounts) | YTD 2019 |
YTD 2018 |
Change |
% Change |
||||||||||
| Gross profit | $ |
7.8 |
|
$ |
4.2 |
|
$ |
3.6 |
85 |
% |
||||
| Gross margin |
|
31.3 |
% |
|
18.5 |
% |
||||||||
| Operating loss | $ |
(8.8 |
) |
$ |
(14.4 |
) |
$ |
5.6 |
39 |
% |
||||
| Net loss | $ |
(8.3 |
) |
$ |
(14.4 |
) |
$ |
6.1 |
43 |
% |
||||
| Diluted EPS | $ |
(0.51 |
) |
$ |
(0.89 |
) |
$ |
0.38 |
43 |
% |
||||
Gross profit was $7.8 million in the first half of 2019, while gross margin significantly expanded to 31.3% from 18.5% in the first half of 2018. The 2019 period benefited from improved operating leverage, as well as a reduction in fixed costs resulting from the 2018 global cost realignment program.
R&D expense of $5.0 million for the first half of 2019 was down $1.1 million, or 18%, compared with the 2018 period, primarily resulting from efficiencies gained from the 2018 global cost realignment program and improved resource allocation to maintain strong progress in advancing the Company’s technology. These reductions were partially offset by increased material costs associated with development of the X1 25PRO™ and S-MAX Pro™.
