R&D expense was $2.5 million in the fourth quarter of 2019, up 9% from $2.3 million in the same period of 2018. The increase was primarily due to material costs associated with the introduction of the S-Max Pro and X1 25Pro units in the 2019 quarter.
SG&A expense of $5.7 million in the 2019 fourth quarter was up 4% from $5.4 million in the 2018 fourth quarter. The increase was primarily related to ExOne’s investment in its global sales and marketing infrastructure.
Net loss for the quarter was $2.0 million, or $0.12 loss per share, compared with $2.1 million of net income, or $0.13 of earnings per share, in the fourth quarter of 2018. Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”)*, a non-GAAP measure, was approximately $35,000 in the 2019 fourth quarter compared with $4.2 million in last year’s fourth quarter.
2019 Review – Impacted by Lower Revenue, Maintained Cost Management |
|||||||||||||||
(compared with the prior-year period unless stated otherwise) |
|||||||||||||||
| ($ in millions, except per-share amounts) | YTD 2019 |
|
YTD 2018 |
|
Change |
|
% Change |
||||||||
| Gross profit | $ |
17.4 |
|
$ |
20.9 |
|
$ |
(3.5 |
) |
(17 |
%) |
||||
| Gross margin |
|
32.7 |
% |
|
32.4 |
% |
|||||||||
| Operating expenses (R&D, SG&A) | $ |
32.5 |
|
$ |
33.9 |
|
$ |
(1.4 |
) |
(4 |
%) |
||||
| Net loss | $ |
(15.1 |
) |
$ |
(12.7 |
) |
$ |
(2.4 |
) |
(19 |
%) |
||||
| Diluted EPS | $ |
(0.93 |
) |
$ |
(0.78 |
) |
$ |
(0.15 |
) |
(19 |
%) |
||||
In 2019, gross profit was $17.4 million, down from $20.9 million of gross profit earned in 2018. Despite lower revenue in 2019, gross margin expanded to 32.7% from 32.4% in 2018. The 2019 year was unfavorably impacted by lower revenue volume, offset by a reduction in fixed overhead due to the 2018 global cost realignment program, lower net inventory charges and the absence of facility exit costs recorded in 2018.
R&D expense of $9.9 million in 2019 was down $800,000, or 8%, compared with 2018, 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 S-Max Pro and X1 25Pro machines.
