The third quarter earnings result for the 3D printing company, ExOne (NASDAQ:XONE) look bleak. To investor’s dismay, the revenue dipped 17% year over year, resulting in loss figures to reach $4.5 million, which brings the per share dip of $0.31. This translates the net revenue for the quarter to $9.6 million.
Analysts had predicted a figure closer to $15.3 million, with per share price dip of $0.13. The recent revelations have concerned investors, who think that ExOne (NASDAQ:XONE) might lose the specialty 3D printing market status.
However, according to reports ExOne (NASDAQ:XONE) has a very good explanation ready for its investors, in light of poor Q3 performance.
Most troubles are due to political reasons. Quite recently, US and EU imposed sanctions on Russia. ExOne (NASDAQ:XONE) has several preorders lined up from it consumers in the Asian state. In order to ship these orders to their specific location, ExOne (NASDAQ:XONE) will need to satisfy regulatory authorities that their product will not be used for any military purposes. The delay in these orders completion has had quite a negative impact on the Q3 figures.
Unless ExOne (NASDAQ:XONE) gets clearance to deliver these orders, which is in the vague at the moment, the company can bade the revenue it hoped to generate from these transactions, goodbye.
The company CEO went on to explain that ExOne (NASDAQ:XONE) respects the US and EU laws, and is hell bent on clearing the imposed sanctions on its products. He went on to say that the company boasts several global customers, with a significant amount in Russia. While the things might have slowed down for the moment, as soon as ExOne (NASDAQ:XONE) has clearance, the generated figures will seem less bleak.
ExOne (NASDAQ:XONE) management have voiced their opinion on the latest severe scrutiny the company is being put under in view of their weak Q3 performance and have urged analysts and investors to judge the company performance on yearly basis. According to ExOne (NASDAQ:XONE) spokespersons, it can take up to six months to two years to complete sales cycle for the company’s printers to sell. Hence, looking at the bigger picture, timed around the whole year will give a clearer look in to the company’s performance.
Even with such failing Q3 figures, analysts believe that things will eventually get better in the coming years. As soon as the Russian shipping gets cleared up, things will evidently fall in to place.
ExOne (NASDAQ:XONE) brings to the market patent jetting printing technology that can handle various types of materials. It has tested OK with over 25 new materials in the last 12 to 18 months. If the company brings compatibility with more materials, it is bound to exceed market expectations.
The printing company is not looking to expand to unknown ventures. The management at ExOne (NASDAQ:XONE) is only interested in acquiring businesses and tasks that help it enhance its specialties.
ExOne (NASDAQ:XONE) has proved to be a disappointment to investors after its IPO. The company is working to win back this trust.