ExOne (XONE) 8 May 202020 Q1 Earnings call transcript

Greetings, and welcome to The ExOne Company First Quarter 2020 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Ms. for Relations Investor Howard, ExOne. Karen sir Please go ahead, [sic].

everyone. you, first time your and quarter morning, Jerry, good We today financial conference appreciate results Thank XXXX call. for the ExOne

X yesterday that presenters, John be and distributed our the press Slide Referring our deck, Doug Officer; Doug were reviewing Hartner, the our and Chief release today our me will Financial Chief on Officer to published are in line in afternoon. and with results Zemba, Executive the slide John Treasurer.

don't discussion you it's our on also If that have available slides on our release, The www.exone.com. that website website. posted today at accompany our are

On Slide statement. X harbor our is safe

are statements may presentation that in documents company events that at other apply statements As Securities risks found we by aware, the and make will are Exchange and with during where release subject These our website be to other on filed and some as factors during this be www.sec.gov. and also as to These other Commission. earnings risks well well as forward-looking the and uncertainties today. results differ These to you documents from may uncertainties provided could future can the we Q&A. are actual cause or factors as the

that in our evaluating I discuss also out performance. which useful are want to we during may call, measures, today's believe point some non-GAAP we financial

as isolation GAAP. should substitute of You in additional results or a presentation prepared not consider accordance the for information in with this

measures accompanying release. provided reconciliations in to of the have comparable tables non-GAAP We GAAP today's

John we the the of for through started financial business the on our rest a of outlook review and line will will year us Doug perspective a go providing get before answers. questions up will provide John results, for open and then the detailed update.

pleasure the turn John? to John begin. my over that, with call to it's And to

morning, for for everybody. Karen, joining ExOne's Thank report. quarter Thanks good us you, and first

and, the new to challenges respond over happy I'm the historic, at with to months and time, The we positioned world report responded been challenges opportunities. well past have proactively certainly that to many opportunities. are presenting few new have the to ExOne

a We Let's quarter. a for quarter. quarter from new $XX.X summary backlog strong of move the in level million X, we momentum customers our year-end Slide fourth revenue, lineup of realized XXXX. benefited the first solid machine delivering started from to We for of that to the and

the operating record a quarter performance the an at solid margins. we backlog with to as From standpoint, level, reported we've new also gross quarter. a early in thanks And orders closed

in the customers our COVID-XX operate that the Obviously, our continue second of I'm that industries. half of facilities pleased critical serve to March globe changed the quite dramatically the in support to report due environment pandemic. around But all to of

other safe. distancing health procedures We and have the social for advised instituted to authorities keep people by protocols

reached out customers and We processes. ensure installed to manufacturing their have adequate of base machines to support levels our operate consumables to their

proactively We business. reductions our protect of health the also cost to initiated

the Please I'll respond more to turn to proactive to detail actions in X, Slide review and COVID-XX. taken

impacted by ICU folks can it that how pandemic. health goes as to frontline York the about this especially let daughter be of have bit the is my I go in out challenging workers. our say our to First, And me a hearts City. New an insight all gratitude care nurse

of revenues a deferral complete machines impact first for resulted been to travelling the of XXXX. or more restricted Now, thus the in has we've cases, shipping, In the we've installations explain as from that ExOne's to in like I'd Asia that few pandemic installations the some planned. planned far. had customer on quarter This importantly,

on execute effect quarter the our to in to will on timing difficult when our be broadly remain know second Travel touch to-date. restrictions we'll despite in continue able outlook. later it's Therefore, strong that it. and the I into backlog,

a and and are March staff the which permanent. we temporary, From been others difficult In made and perspective, organizational implementing we've changes. are of permanent on in April, reductions some some proactive reductions, but cost cost necessary decisions

including has we've temporary team XX% has reduction. in German And reductions leadership We've workforce. XX% the implemented cash in XX% or Our North a following: a similarly, furloughs short our American our taken taken most our for salary fees. their employees, global Next, reduction salary work reduction a Board and of initiated

reductions, cost some a and Finally, permanent. all we and made discretionary hard took spending look some at further temporary

carry of to will fourth $X deliver second of of million reductions into which in approximately expect through permanent half XXXX. savings the We of about over that quarters XXXX,

and XXXX, corporate assess are our health we continue through progress that and as believe We we capital we stay to these will preserve through will important these we times. for situations As proactive. actions the uncertain market manage early

term same At though, we've our to strategic long just priorities, the a investing time, stayed at true goals, rate. in reduced

collaboration with reusable such the a initial produce turn I Currently Pittsburgh announcement of recent avoid against XD X, Please associated say printed our to biowaste a as filter long-term the respirator Slide for intended University our filter contains sustainable will and undergoing issues porous testing, with masks. disposable on the because to I cartridge contaminants share COVID-XX. these sustainable, metal filter. protection sterilizable filters

personnel shapes that expedite variety new Once customized other respirators, working filters these of medical frontlines. today. been mask we being urgently for solution are Our print and the ventilators approved, team developed to on this can PPE a in has for designs

a long-term shortage, solution a filter we the it variety address applications. believe help presents of current is to for PPE a other solution this While

Please turn X. to Slide

that diversified stability some ExOne turbulent and times. color next provide to the revenue the differentiate Over few in slides, want help I streams we believe provide on

talked a about Binder itself markets. broad enable technology our the of of that and end jetting long lends diversity that to have customers We applications range diversity.

in revenues industries our one Not categorized the the or of of industry, shown forefront automotive XD chart printing. sector, at characterize We largest our more here. surprising, as XXXX was by being innovative the

rates. our We believe of was at our is beneficial emphasizing diverse this industries the revenue varying half ExOne to categorized through advance end into that nature exposure. category, other note Important almost as different economic market the that to of cycle the

on to XXXX, and turn the a revenue that further. with I'll binder diversity our touch been advancing X, let's technology end perspective We've in of interacting and Slide driving, stream. Now, solutions, customers, from since developing jetting concept

We Pro have platforms. of machine max and XXXPro, breadth a and wide is XX for the Pro, M-Flex components. metal our These our our molds, commonly from are of metal productions machines to sand in cores, which printing, research small XX for S-Max and and which range between fastest sand XX pro and and batch S largest and for S-Print markets ideal Innovent+, production our smaller prototyping, and used

positions customer machine respond This applications. sizes, to wide diversity a of well to us variety of

to ranging Our service printing recurring to offerings revenue, for of high generate collaborative volumes parts at customized custom of our adoption one part R&D production customers contracts centers. from

Focusing pillars. on recurring our revenue is strategic one of

steady of this provides important more base. a revenue economic turmoil, During even and becomes period a

Now, on with let's The platforms. various XX. turn materials to machine the Slide how the they demonstrates right align chart our breadth our and of

more consisting have ceramics, of than powders XX and We sands, qualified composites metal.

customers. R&D is work Additionally, we with XX our a as growing constantly print more than number which we materials,

to our emerge the customers. with The of combination powders value high resiliency stronger. weather and for along These wide economic demonstrate a our ExOne's range of the solutions machines, breath storm of drives even help manufacturing factors these

of financial now our slides. Doug? I'm to going the through let details Doug walk

John. Thanks everyone. morning, Good

million XX% $XX.X $X.X XX, start in compared XXXX, in Total please we'll turn revenue. to revenue revenues. basis, with a was $XX.X growth first increased by to quarter the could Revenue and trailing Slide million you QX XX through in was the sales month QX to of million of XXXX. recurring driven quarter $XX.X XXXX machine If first revenue On increases first of XXXX. quarter in by compared with both million XXXX

Slide XX. go let's Now, to

$X.X the the Trailing current $XX.X from This and the quarter million mix quarter, machines of last Our Machine increase year's XX quarter months favorable $X.X compared million sales quarter. due XX% to up in for million to machine of of Sales in a sold. XXXX. first higher first in first were was XXXX, $XX.X were volumes million

to we'll machine if we turn sales. Now, can unit XX, Slide review

industrial well XX and Pro for direct be second and in half other XX Innovent+ expected our the XXXX. ceramic of our parts platforms, introduced reminder, for which as XX a such components XXX to our as Pro, machines platform, M-Flex completed and applications, is print development as metal recently and As include

Machines S-Print platforms. Indirect and Pro, sand, as such tools print and Our cores, S-Max our S-Max molds, include and

are Indirect systems Our our Machines generally higher average larger achieving a footprint sales value.

first We year compared sold the with in quarter, X XX machines prior XXXX the in quarter.

platform. early and as machines well of this we our in as our acceptance This five printing mentioned, XX of sold. in binder Pro. jetting machines mix of from M-Flex first through quarter already sold of a XX XX an customer volume I nine As customer indirect XXXX including favorable technology an machines, an benefited consists adopter of first was direct the increase quarter The

Following delivery of installation, completion XX during an XX to XX this four is their their system as committed of global support as XXXX, additional the operations. Innovent+ Pro well successful systems, to first Pro firmly customer

Once industrial and a research geographies customer mix applications QX set a global again, during and and our users. Machine XXXX of development Sales diverse represented of included and

split for we basis, versus TTM machines, machines, XXXX period. first the XX XX XX split direct XX XX a and XX direct quarter and On for a indirect TTM XXXX indirect sold total of

quarter last first XXXX, a contracts. as growing XXXX XD million revenue, other with Now, reflecting sales and of increase first an consumables quarter. base year's driven let's $X.X over primarily products, development an revenue XX% was well to XX. increase Recurring materials turn machines, of first as in to which printed global The our our compared research and associated services, installed to includes the growth was increase Slide and in quarter commercial, as by in of

the XX $XX.X $XX.X prior period. relatively months, recurring of million in was in line the trailing million with year revenue For

XX, gross in for profit million and first XXXX $X.X was Slide million the first of to XXXX, margin. up Gross Turning profit $X.X quarter. talk the from we'll quarter about

For the was completed lower Germany. Improved and XXXX, our Margin facility the a XX.X% base first XXXX. margin realized was during Gersthofen, headquarters basis quarter pricing partially sale gross by impact XXXX, of an from the offset and European execution leaseback for first of XX.X%, our which in first point down of drove operating revenue higher XXX of quarter approximate quarter

global volumes months, overhead XXXX June to partially initiated cost lower On offset the following and lower right, decline XXXX. our for inventory pricing, realignment net in realized reductions the is trailing charges program lower XX the revenue costs and by attributed in

Please XXXX, SG&A Comparing of expenses million. $X.X turn $XXX,XXX we'll Slide our SG&A. up infrastructure. by sales driven was investments increase discuss our marketing to the global first This were XXXX quarter and to XX, and our to in

incurred efforts, marketing debts. including This trailing $XX.X employee bad during management SG&A partially associated million. costs Fair, costs realignment increase increased selling changes, our which due discussed our with to The cost XX global reductions with our and higher months, the $XXX,XXX was offset executive consulting associated and Trade by net For in was XXXX for the for we investment calls, by to GIFA prior provisions cost program. and our

we'll turn to our Slide spending and Please discuss in XX, investment R&D.

Quarter professional in consulting period XXXX reflects fees employee decrease by partially lower lower driven First million, by consulting machine month trailing cost increased R&D to $XXX,XXX associated $X.X associated costs. offset related QX an cost, professional development XX global increase program. a with realignment in by our overall expense and fees with XXXX and

our recognized as of on line first gain the moving earlier, million as to like $X.X the of of quarter I'd in leaseback we mentioned backlog, separate nonrecurring completion transaction XXXX, point a sale of I item reported a Before operations. the result that out during statement of to a

Now, agreements. funded Slide customers our committed for the machine our backlog. orders Backlog as also maintenance lease review operations indirect backlog if includes contracts and received you, other research and I'll firmly well our of includes and printing global orders non-cancelable services, machine includes turn from revenue remind including and development. and as our portion contractual direct to operating our recurring To you'll XX,

XXXX. XXXX We XXXX to of million backlog with $XX.X another million, quarter at ended the balance $XX.X end record of million year-end at compared first QX the $XX.X and

XXXX. and shipping adverse our in anticipate result that backlog COVID-XX both environment, in lower of and will Despite year-on-year impacts result we impacts including the sequentially, disruptions pandemic, to this global second travel the macroeconomic compared as international XXXX quarter QX overall revenue the in and a to increase for

associated customers. including term time, on and full uncertainties duration decisions the outbreak this make severity at longer capital, the business it and us on future for equipment impact predict Significant the of our to effect of spending the year with our difficult

the Nonetheless, we its discussion thesis shorten COVID-XX notable of remain binder during confident technology, which in outbreak. has the the supply our to global including ability in been space underlying chains, topic jetting industrial a of

ultimately and in strength, appropriately leading goal position our binder out to a manage enhancing business jetting. Our in of is come position of our market this situation further

XXXX XX, net positive during completion first Slide this transaction, million from quarter. which Overall, $XX.X during was three a the cash of $XX.X driven our our increase waterfall flows generated of received the proceeds Turning by net months leaseback flows. quarter. chart of we represents cash a had to This cash the million sale

Our million CapEx expenditures quarter to $XXX,XXX. planned the limited spending $X We in capital additional for XXXX. of were anticipate cash an cash first $X million to

Slide If its the you'll under $XX.X following our sale million $XX.X amendment spoke XX, increase extension leaseback end XXXX. party we I XXXX. total offset and completed at of through quarter, during the at just had credit XXXX, March XX, XXXX. available turn reduced compared first March million and to revolving by reflects will QX year-end as liquidity year-end our the completion facility, of you amount related This also see to XXXX proceeds about, from of At liquidity the the the at

March all believe have initiated of cash April through reductions, to liquidity pandemic, to rate a spending, COVID-XX maintain including In to pay we employee furloughs, continue response in liquidity. actions, that manage in and global XXXX, consulting adequate and and decreases conserve the these terminations, saving to various we sufficient in business. times, for to stability and an We mix provide our and effort uncertain cost other

actions. a net approximately as $X of for We've a of result XXXX reduction these targeted of million remainder the cost

COVID-XX the we to pandemic, expect timing, Given additional model. with operating assess further the cost to the of necessary uncertainty associated extent are continue actions to adjust global high whether our and level of

That John. concludes it my prepared back turn comments. And now I'll to

Thanks Doug.

outlook improve XXXX. backlog growth in optimistic were and Slide the for we machines to performance current turn With lineup Please XXXX. XX, and fresh record of we cautiously I'll a our and year, discuss financial entered for

installations But, first quarter backlog I first as delaying drove into Our been well as quarter quarter. due earlier, in in to have the at restricted, as shipping machine travel solid COVID-XX, revenue mentioned and second the the least.

from but revenues. this and build the working part time, reason machines same facing is another the Our we to economic to our continue we'll see our operations backdrop. That that set realize backlog when customer them value record manufacturing, able those predict with teams At we despite of backlog, be of the team the install hard additive customers quarter. is can't

we COVID-XX about get the induced excited economic the remain we So, downturn. future growth once past

machine, XXX the machines last XXXX. started to first printer ship extra-large are we the the in new We have metal development year, XX completed we year-end half addition, revenues for In to plan on-track of the Pro. and development to our production of newest by

capital which lineup our This stream. we on decisions postponed. be certainly of are to stable investment more recognize Despite a that revenue, our recurring some fresh machines, provides focus increases likely revenue

Finally, this the out we ensuring continue to entered. to than when we to of be we come respond crisis proactive market situation, stronger

my to Slide closing for turn slide. XX, Please

our reveals of customers, in others publicly that as shortcomings and the pandemic have chain. stated global with current in some discussions engaged supply some COVID-XX have customers new the We potential

ways resilient. supply chains Some makes it looking that for XD This adoption the accelerated their lead companies more with to to a decentralized production are of could revamp printing. method more

jet lower customers attracted de-risking in are being global delivered printing. changing market cases by the Our response binder is to faster and which of cost, now supply to chains, total many demands,

they We manufacturers We ExOne can't result change. the as can to new how in know that support historic a world. move forward predict will as that many or say But things success capabilities has things of will this change what to we pandemic. the exactly

open my the up now, questions. concludes let's for lines That And comments. prepared

go Global Partners. Please is [Operator Instructions] question from sir. Brian Kinstlinger, first Alliance ahead, The

work I ICU doing okay daughter and done. the God the in your is hope she's bless

to talked on the quarter You U.S.? I America. about able Have deliver the you restrictions about international but installed North I'm curious machines to-date travel, guess in been

Doug. Brian, this is

are, out what have may been quarter have machines for the access here number We a been we their the able but and still for second for domestic transactions outsiders, most closed a geographies already. part, travel depending clean. in on companies of Certain work continue part on to the most few have by have restrictions pretty

is and mentioned assess helpful. light decisions, install difficult capital economic to a they on And the if short-term even this then communicating at delays? you are of what eases? saying, side I backlog your do the even And Great, there are that's reasonable and you distance scenario, In believe, social long-term deliver that be least appreciate U.S. you of obviously difficult the won't in perspective to year, that. impact all conditions, customers able

Yes, thanks, Brian.

new is the put of result of many their orders the One bit. news talk a and I little to as think the the a is just through is pandemic, halt Broadly for these about roadmaps. until product there. do of see to a think importance things can understand they future Yes, there's the of the perspective kind fog questions two I one good additive times I'll that. things of lot a customers customers

on we're are So for the or that many going to products of working are projects but today, be launched XXXX. not out in for that are products XXXX

processing So, aerospace effective affects than general forward other medical at see by industry positive making, It diversity the industry. reduced and of decisions real let's customers to like why a out I us, oil equipment. That's or move it industrial obviously, gas continue pointed we certainly there. food and say, things varies like are level our to more

out team overall you part? through. seeing there are customer to the there still take So, facing is opportunities responses, pushing want second Do but a positive we're variety our of that

Sure, yes.

your around as for with first applies if as hit domestic-to-domestic. to we've around at and both but that U.S. where Japan, and to currently, move seen operation well just similar to the we look ability sort Germany not have you of question, ability impacts the And the this domestically, move So the continue you on business internationally.

but you no a we either In number scenario, have, be we to the then beyond. our execute lifted slowdown transactions or get XXXX large the restrictions and able work the we that look currently machine of that on having may have we in contracts that to be given being understanding within to travel case able concentration XXXX gettable various have. backlog teams There's those best there's completed that transactions scenarios that's international completed, when at the and be pretty a doubt suggest when be of heavy those work out are that in believe contingent that

Great, thank when you business, how this I see do impacting which will I assume start for that and benefits cartridges, for that. The guess reusable there is main metal is right? your ExOne, the you consumer

frankly, a been broadly COVID-XX. in some recognition we - I it could, help with printing there Yes that to how started just XD been as say to very has has mean, responsive response conjunction project

that the that in that shields, - has face side, can of much cetera. used industrial We head, polymer press filters. Some that on deliver opportunity of of binder jet a for the that with porosities unique are technology et variety been the saw

thought daily our about haven't their it in testing future and or good meet we now a very result press collaborators, incorporating including it have centers, designs. end results. mask release, in upwards medical their I of of interested initial that we masks on we mask XX very in frankly, the it are we're so, companies with we different And and quantified came customers, this it. as and seeing - into, try with Yes,

We quantify it. haven't been to able

said, this COVID it for the some would people solution despite a just sustainable for a like, And this like I us, interesting normal think but I legs really long-term. think is that as we has things other drag, just positive have is think broadly. course, be

we to XQ cost in are the have on for operating side. Do see severance any per about is backend about loaded quarter, expenses expect it restructuring? question $X.X Last more in should I think then we other or million less And cash the Doug. charges there beginning

well nonetheless, in the of the charge sort The way radical out for at actions incur, getting There's out based it sort on as in mapped of and front of April. the of March a end conditions near terminations. very early I of its remainder did remainder associated we And the permanent we substantial we're of we timeline have of out the take, that of pretty how to that ensued. spread year. not the sort for it were were we But employee the even with being think, the looking expect the that we're market fairly year,

Please next Chris from is sir. ahead, FBR. Horn, question The Van go

Good your for you're printers. taking with And side call. everything my healthcare for morning, the on you doing thank thanks

this you're process demand want to up the to going out you're and to know just caller, a of on Just opening There's some economy want you're to previous or somewhat how what temperature as right the were going take conversations up. back follow-up your the hearing conversations is have is - just real-time - ramp seeing now? weekly there just dynamic where happening,

again, and the diversity. advantage Yes, of of one the I'd diversity Doug say mentioned geographic

Europe and is, we in and then saw this U.S. starting So the Asia then this

And in geographies this speeds ways, out are coming some different at of different obviously. so

The which but other would bit for the I three I've a happened say with it initial was U.S. an last touch that that there what weeks. little in happened on maybe a alluded I to two is day-to-day particularly spending, was - response shutdown closer time capital that or basis, thing

through marketing equipment future has And then customers even that they as and roadmaps, the have, our and the leads and being their had, to plans ensued. our customer recognized those particularly their been facing remote again, is significant that ways, understood side, on that and we've interactions coming. team tied customers and in our Again, discussions roadmaps got with some capital effective,

phenomenon. that is there So,

time. having ownership production customer to with those opportunity there's in the the at should maybe based closer and slide, the I I the this, overplay more chain cost to decentralised all there my don't supply to And these of discussions printing my reconfigured. as binder current but then, be startup we're is of of about and look discussions want mentioned production And the last start jet

also thing So cetera. impact, I level that's a again, weighing countries. And discussions Japanese thing that's but various into thing, an or the a that's not German conversations think and Italian U.S. or a solely not a around probably short-term board et thing the that's

Thanks that things? And disruptions or color. any about affecting it, interruptions have for how are Got that okay. supply seen your then chain, you

on So very thanks, of not primarily did had we subassemblies this that. concern look We've supply or supply been is inside provide been was Initially, that that buy. of or we have We're since on have customer electronics at we feel to incoming early assured we there. by and supply base out monitor. control We've also and consumables our continue that either systems that looked may for that. chain our our there have embedded any adequate disruptions we our chemistries

the responded supply either in in Frankly, the domestic most in well. U.S. chain of chain Europe So, Western our has supply or yes is

- forces, Okay. that it down the to said that margin Got it. the year you due And heard I mainly last to you make from on I the percentage detail margin competitive gross to due price just around side, was environment? any tick just want concessions, pricing Was correctly I believe price. sure

So has little we there's about material been talked a pricing - a consumable think the pricing couple number calls side. a prior been pressure areas, I little - There in bit we materials pressure. bit of some on the of one,

this historically in probably a bit than introduced The are machine. early machine discreet models going XX the to Our margins pro bit experienced types. what of the are and particular varies we machines just on of period quarter, there. The maybe we've of be to return a less other some our from new little a down that period

that significant the notwithstanding on elements call. on probably the mentioned side are other two items those So the pricing most the we

The is ahead. question Dorsheimer, from Jed Canaccord Genuity. go Please next

about echo me sentiment the Let your John. daughter.

Jed. Thanks

So with breakdown to side? the the tool the was on respect business, geographic what

of increase performance We bit to which U.S., XX%. represented the in an relative normal about saw a little

were sort of regions about evenly split two XX/XX. other The

bit. off been was So in had down of recently, was we had the up then the little an a where bit they sort and just of of to and running Europe leveled little being been a bit U.S. Asia compared that a at, benefit uptick to ended experiencing that

the the equally that assuming, that and the timing Europe? the I'm the as coming from just to pandemic? of spread or is up forward question ask but restrictions set travel between Asia Is you is Asia look it I'd that are mostly result rather and hampering

a equally spread. from continued We and broadly to that We much starting the detriment. do China, pretty a we into to can bit out systems been up Japan-to-Japan and into exists been currently that do more do see lot shut transactions, be few of the there, we've to China. We're we're movement that. of limited may a although Europe-to-Europe signs it's Asia of but opening hadn't have transactions has So selling a

biggest so that's And probably the effect.

Got it.

not should the quarters cost million other that When affect guidance and Okay. cost of again, for in put place, million there you've John like a exercise, at would like OpEx Or a structure? getting the that. just I three those or reductions $XX levels? just on 'XX, this with I are that anything $X to nuances is just in for cost structure, just if the we kind take assume, XXXX million, the flat of look $XX is at

really to a that bit then up how as we some flexibility allocation I on We G&A so. bring R&D little it by less be the on ends people the because intensive short spread Germany bit terms dividing we've based No, in set be it's think believe depends a And where from pretty and how to to out these allocation It'll we side and on on so out the sense. side, of and - a and heavier QX of and targeted little perspective. COGS three QX, up the a how little as the that work do in makes have our it'll lot scheduling. plays program in evenly or spread how from

So of is a bit. align there that's revised production trying a little down obviously internally with to we're a forecast the bit sort

come down G&A to cost efforts. that maybe based to a tune So about and going say you the the goods the remainder of, of to third likely the fixed to is on then anticipate R&D can these actions, the let's sold and

remind last market all? - Got how we that the focus the shift Thank could And forward? so, just as you. might you new question, look of tool it. segmentation me shift Does John, And then line that at if so up? the end

side the have of sand to I would we productivity business, dramatic a Yes, new on I we say think think there'll I tools don't continue the be the shift, of improve there.

about or same. is I by So, would category assume split the that the the output

On the introduced the metal Internet and across that let's education Again, production is moving direct though on R&D say the we more the towards was Board. more particularly - XXX. side, where, as even is

a categories from processing We food Automotive they have precious production. number and spread we Defense to to to customers metal have of into

really pretty it's broad. So

consistent. So of stays I our think end split market

Got it.

Just really nice.

things might one - you've Is you guess that seeing earnest but market year others? I these the of feeding value signs of of markets, be you will a think Is clear orders. So running where the proposition of specific you're sort sort one there seen that that follow-up is there. be types of of maybe COVID an out a and by ramp kind two you're you think end that at pushes than kind know for

broad is broad thing. parts, that's I decentralised, that which is lower things and, brought production cost There bring chain end, back at guess. I with can I of a up metal Yes, point reassure de-risking, the supply

As particular to we EV for far interest the side. segments, as on automotive relevant see

think up there think that with I or looking high EV that applications folks I coming are volume hybrid is absolutely at either are people So there. vehicles,

so broad two materials and that or that a really is to it's out. crisis. unique one it's steels, the there this to - say expansions jet, interested are hard into seeing going we're really break of say market would There we as that's some tool through we're is think I get in I big in three bringing

Instructions] from sir. go [Operator question have Please a We ahead, [indiscernible].

after you let ask a similar I this. stopped few have asking questions. others questions me But had

differentiate go mind a the may for say way in also or the the like metal binder coming technology. say You advantages binder leader cetera. to for trying or to what in industrial printing sand you're a different And the and the that be others desktop, jet [Hewlett-Packard] in line manufacturing. jetting the how you or Can make a your yours production, explain themselves and to field either printing ways and if in are global et in between simplistic field XD can why you way your name product products,

additive Thanks just ownership It's [Ralph]. the become parts. of attracted metal is That that Binder it cost the names different for you in of highest world. some jetting multiple tools described. is is recently is productivity, of lowest something those recognised that one

in three for been this we've last in years. two the business they've or XX coming years, been So

So think a that A) I a have we're singular a lower almost speed, fashion one of for And a the element processes it's a cost it's build raster to productivity. majority the additive speed that and scalability layers. is cost, recognition couple reasons, - in says serial where part lower a to of going build key

materials. The is lower second key cost

powder, laser of lower the dramatically cost because tenth be fusion, cost, in metallurgy. products are they're even bed used standard to a to to tend potentially compared that commodity powder closer materials Our

the two why is primary jetting reasons metal production, are the binder of future printing. those So

things. described experiences far plus actually a we this already large advantages, us shows install revenue couple does it ensures have customers. base, with that gives ExOne base have it recurring a install As a as produces these which time, we that - I been we've a long One, in

out machine they're there. machines we Someone new coming in to of place machine have or trying fifth the where first their hundreds

the also the industry. most machines in productive Our are

So highest if why the wouldn't to that's high you're and productivity, go us. get coming productivity to into this you machine space

of say the- the of because would equipment widest I materials. range that of the our and we Finally, have because platforms, our and features experience, of breath

are very stainless in standard interested steels. some So customers

or are exotic those. Some produce titaniums, are in to of some range ceramics. aluminums interested across wide a interested in able We're

a as is advantage different So, now. needs different and that also maybe are have in this, those because who an downturn such folks buying customers

future not for has reasons of also but So the XD printing, I’d say metal is significant those entrance. the new are just jetting over why advantages why ExOne all the binder

the reached turn session. the for ahead. question-and-answer go gentlemen, Ladies of to And like and over end closing remarks. have I'd call the we Please management to back

the you transformation the our to digital members Take quarter. talk care you are for your you today. next hard time And acceleration innovation working of world Thank all team and to collaboration, around who for drive manufacturing. to thank all,

conference. today's concludes This

this your for disconnect may at lines time. Thank you You participation.