The ExOne Company Announces Global Cost Realignment
June 29 2018 - 8:15AM
Business Wire
- Aligning capital resources to
maximize efficiency
- Initial reductions principally in
consulting and select personnel
- Program intended to achieve positive
earnings and cash flow in 2019
The ExOne Company (NASDAQ: XONE) (“ExOne” or “the Company”), a
global provider of three-dimensional (“3D”) printing machines and
3D printed and other products, materials and services to industrial
customers, announced a global cost realignment program. This
program includes an immediate reduction in consulting projects and
headcount, as well as changes to the Company’s working capital
processes. Areas of focus include all of its global operations,
with emphasis on production overhead, general and administrative
spending and working capital initiatives. This program has
commenced and will continue over the next several quarters with a
goal of achieving positive earnings and cash flow in 2019.
S. Kent Rockwell, ExOne’s Chairman and Chief Executive Officer,
stated, “With the essential goal of significantly improving our
cash flows in 2019, we have conducted a review of our cost
structure and working capital practices. We are evaluating each
position and expense within our organization, with the desire to
improve productivity. As a result, we made the difficult decision
to eliminate certain positions within ExOne, reduce our spending on
outside consultants and further rely on some of our recently
instituted and more efficient processes. Additional cost analyses
and changes to business practices to improve working capital
utilization will be ongoing over the next several quarters and are
expected to result in additional cost reductions and improved cash
positions. All the while, we remain focused on our research and
development goals and long-term revenue growth goals, which will
not be impacted by these changes, as we continue to lead the market
adoption of our binder jetting technology.”
About ExOne
ExOne is a global provider of 3D printing machines and 3D
printed and other products, materials and services to industrial
customers. ExOne's business primarily consists of manufacturing and
selling 3D printing machines and printing products to specification
for its customers using its installed base of 3D printing machines.
ExOne’s machines serve direct and indirect applications. Direct
printing produces a component; indirect printing makes a tool to
produce a component. ExOne offers pre-production collaboration and
print products for customers through its network of ExOne Adoption
Centers (EACs) and Production Service Centers (PSCs). ExOne also
supplies the associated materials, including consumables and
replacement parts, and other services, including training and
technical support that is necessary for purchasers of its 3D
printing machines to print products. The Company believes that its
ability to print in a variety of industrial materials, as well as
its industry-leading volumetric output (as measured by build box
size and printing speed) uniquely position ExOne to serve the needs
of industrial customers.
Safe Harbor Regarding Forward Looking Statements
This news release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act with
respect to the Company’s future financial or business performance,
strategies, or expectations. Forward-looking statements typically
are identified by words or phrases such as “trend,” “potential,”
“opportunity,” “pipeline,” “believe,” “comfortable,” “expect,”
“anticipate,” “current,” “intention,” “estimate,” “position,”
“assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,”
“seek,” “achieve,” as well as similar expressions, or future or
conditional verbs such as “will,” “would,” “should,” “could” and
“may.”
The Company cautions that forward-looking statements are subject
to numerous assumptions, risks and uncertainties, which change over
time. Forward-looking statements speak only as of the date they are
made and the Company assumes no duty to and does not undertake to
update forward-looking statements. Actual results could differ
materially from those anticipated in forward-looking statements and
future results could differ materially from historical
performance.
In addition to risk factors previously disclosed in the
Company’s reports and those identified elsewhere in its Annual
Report on Form 10-K, the following factors, among others, could
cause results to differ materially from forward-looking statements
or historical performance: the Company’s ability to generate
operating profits; the results of the global cost realignment
initiative, fluctuations in the Company’s revenues and operating
results; the Company’s competitive environment and its competitive
position; ExOne’s ability to enhance its current three-dimensional
(“3D”) printing machines and technology and develop new 3D printing
machines; the Company’s ability to qualify more industrial
materials in which it can print; demand for ExOne’s products; the
availability of skilled personnel; the impact of loss of key
management; the impact of market conditions and other factors on
the carrying value of long-lived assets; the Company’s ability to
continue as a going concern; the impact of customer specific terms
in machine sale agreements on the period in which the Company
recognizes revenue; risks related to global operations including
effects of foreign currency; the adequacy of sources of
liquidity; the scope, sufficiency of funds for required capital
expenditures, working capital, and debt service; dependency on
certain critical suppliers; nature or impact of alliances and
strategic investments; reliance on critical information technology
systems; the effect of litigation, contingencies and warranty
claims; liabilities under laws and regulations protecting the
environment; the impact of governmental laws and regulations;
operating hazards, war, terrorism and cancellation or
unavailability of insurance coverage; the impact of disruption of
the Company’s manufacturing facilities, production service centers
(“PSCs”) or ExOne Adoption Centers (“EACs”); the adequacy of
ExOne’s protection of its intellectual property; and expectations
regarding demand for the Company’s industrial products, operating
revenues, operating and maintenance expenses, insurance expenses
and deductibles, interest expenses, debt levels, and other matters
with regard to outlook.
These and other important factors, including those discussed in
the Company’s Annual Report on Form 10-K, may cause the Company’s
actual results of operations to differ materially from any future
results of operations expressed or implied by the forward-looking
statements contained therein. Before making a decision to purchase
ExOne common stock, you should carefully consider all of the
factors identified in its Annual Report on Form 10-K that could
cause actual results to differ from these forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20180629005110/en/
For more information:The ExOne CompanyBrian Smith,
724-765-1350Chief Financial Officerbrian.smith@exone.comorKei
Advisors LLCDeborah K. Pawlowski / Karen L. Howard,716-843-3908 /
(716-843-3942dpawlowski@keiadvisors.com /
khoward@keiadvisors.com
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