Is ExOne Finally Turning Around?

The ExOne Co. (NASDAQ: XONE) reported fourth-quarter and full-year 2015 results after markets closed on Tuesday. The 3D printing company posted a diluted earnings per share loss of $0.08 on revenues of $16.2 million. In the same period a year ago, ExOne reported a net loss of $0.50 per share on revenues of $15.76 million. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for a net loss of $0.15 and $14.71 million in revenue.

For the full year, the company posted a per share loss of $1.79 on revenues of $40.4 million, compared with consensus estimates for a loss of $1.85 per share on revenues of $39.04 million. A year ago ExOne posted a net loss of $1.52 per share on revenues of $43.9 million.

The company’s chairman and CEO, S. Kent Rockwell, purchased 1.42 million additional shares ExOne stock in January in a registered direct sale. Proceeds to the company were approximately $12.4 million. Rockwell now owns about 28.6% of ExOne.
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At the time of the sale, ExOne also terminated its $15 million five-year revolving credit facility. There were no borrowings on the facility. ExOne also sold about 92,000 shares at-the-market for $9.17 per share, resulting in net proceeds to the company of about $600,000.

Regarding the company’s outlook, Rockwell said:

We approach the year with cautious optimism, knowing that macroeconomic uncertainties, including the depressed energy sector and foreign currency devaluations, will influence the timing of capital equipment purchases and other spending decisions.  Accordingly, we also intend to implement operational improvements to increase our facility utilization and enhance working capital management with an eye toward profitable growth and sustained liquidity.

The consensus first-quarter estimates call for a net loss per share of $0.29 and $9.6 million in revenues. For the full year, analysts are looking for a net loss of $0.93 and revenues of $52.85 million.

For the two-week period ending February 29, about 24.4% of ExOne’s stock was short. That is the lowest short interest in 12 months.

ExOne’s shares closed up more than 7% on Tuesday, at $12.93 in a 52-week range of $5.81 to $15.97. Shares traded up nearly 9% in Wednesday’s premarket session at $14.08. Thomson Reuters had a consensus analyst price target of around $8.80 before the results were announced.