ExOne (XONE) 6 Nov 202020 Q3 Earnings call transcript

Greetings, welcome to the ExOne Company Third Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. I’ll now turn the conference over to host Monica Gould, Investor Relations for ExOne Company.

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and the operator, XXXX everyone. released ExOne after Thank quarter good of for third close. XX, XXXX results market you, morning, ended yesterday September

will release, a If Doug not of Zambia, archived Officer; Officer. of are, our be With Financial the copy John you invest.exone.com. section may This at our being on website. of Investor you ExOne's Chief Investor Relations obtain receive webcast the call and our Relations me did website Hartner, from it Executive and press on is today's Chief section

of to Before risk I'd as I turn factors most recent discussed those uncertainties. future These filed in Form on the call will are on by of and statements risks to over this discussed discussion that call in and statements or and the as contain risks new no a to forward-looking these XX-K on John, the result today's statements reports and those press note as and well company, include based that XX-Q as subject Any forward-looking is such obligations to made like today uncertainties information the are update events. we undertake as release. assumptions

Reconciliations like table that in GAAP with to these reports included reporting, And performance. to addition today's Accounting In U.S. GAAP I'd to conform are certain do financial and in call measures the to We these between turn John. ExOne understanding over press non-GAAP our the that, of measures believe not non-GAAP Principles. Accepted Generally stand release. the measures enhance

market. pleased performance revenue momentum record yet delivered reflecting further double-digit another total of backlog. of quarter solid year-over-year million our quarter sequential and XXXX of growth XD position everybody, ExOne’s revenues while We morning, Good to Thank reflecting you, Monica. quarter XX%, to welcome demonstrating differentiated the third achieving third earnings a I’m $XX.X within report and year-over-year growth call. and

more in were strong the sales time, the $XX.X of as enabled million, periods. to that XX.X new level our than our that million doubled restrictions some to sequentially quarter, time. already teams easing we grow third started support system continue At travel prior will predictability record our backlog installations the During our complete revenue to to for continued a same to

our sand some business. and that due system Other to business. low to XD various certain consumables Our On of seen from as our our also includes as recurring and R&D well growth recurring or below revenues related backlog several concentration with remains or revenue machine a carry to diverse order which recurring XX% historic backlog million margins module. new flat norm Gross segments contracts, an We contribution portfolio. expense. basis metal revenue no sales limited services, our industry metal increase. during year-on-year was were demand delivered margins this printing at our was ASPs have of including of sequential than machines warranty depressed period on of areas of higher parts increased our anyone Moreover, COVID geography $X.X strength metal due primarily

resilience performance During of the as now touch and as actions that conditions. in Doug execution strategy operational ability continue of our our million, our transactions the this team’s our we to will totals prepared phase highlight both prudent business achieved increased our which his in $XX further the executing we well Overall, challenging liquidity remarks. quarter, financing with nearly on models

positive growth believe deliver into visibility, that in despite year-over-year market Given our will conditions travel on assuming in revenue we’re continue we restrictions. performance to year-to-date momentum strong and XXXX. track increase and no this XXXX, challenging improving significant Also,

binder the road multiple jet ago. in will business systems will we’re the production metal largest new which binded installed our little show with use are to This XXXX. XX marketplace. now year XXX momentum confident about Today talk the We’ve be into tense just includes Pro you to why launched multisite have operations. ExOne in system a ExOne production metal be in machines in successfully like a are Pro detail and shipping about jet gaining revenues I’d ExOne first Now, and half the a and more expanding soon recognized initial Meanwhile, anticipated the customer ahead. of

This upgrade we is the our the also Innovent Innovent announced to Plus, system metal best is the today. advanced printer. world’s selling quarter, major level Pro, entry binder During jetting XD which a metal

low a has process Over owned a two to production. our last adopting jetting technology manufacturers that pathway in gives years, risk the team binder metal

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to years through metal our be helping a XX experience in of binder in jetting manufacturers this sizeable Given is turning major shift role ExOne’s out differentiator.

end them. factory they’re new really in material of metal value of they is most a same selling widen. our machines, solution. because insights complete continues clear towards day to At At in binder still gravitating we’re the the so manufacturers, to binder offerings time, us jetting just aren’t leadership the our We jetting floor delivering and

used materials. That material our to XX and material cannel less qualified those being During defense single performance total brings the half with quarter, of more than we XXX, hour qualification applications. in announced other high in third-party widely for

Lab, we also novel Air steel for quarter U.S. This the with a new high announced jetting binder strength in alloy. contract force AFRL Research

it metal smarter exciting other aluminum we phase such making faster, jetting and more fast the being for manufacturing qualifications, sustainable. binder believe these as transform track With materials ExOne’s and will of

which to ExOne’s for area focused our long discussion team. side our an time remains move customers and We’ve sand with let’s our Now, the relationships business, of sand founders.

and our new into Here, improving moving on performance. productivity focused is technology a phase

we’ll to been addition X.X distending wrap manage rolling ahead first solutions to We but the industry of continue we’ve moving the binder several believe our a new the are through with up, upcoming To jet productivity. innovative, our transformation solutions more critical station, we app COVID-XX customer in semi-automated confidence. a manufacturing to that role improve out in uncertainty, XD and play manufacturing sustainable of outlook. who printing traditional will on a sustainable In help this that with partnering material I’ll model. quarter other us now leader will decentralized confident mission without we’re innovate, technology to limitations. machines about results customers and of manufacturing companies and advancing who and the And over and remain that details to by continuing market segment With the turn financial third our provide our call deliver Doug, our

Good results. We market record to streams sequentially and third our about continued of quarter our strong pleased level and third revenue ended execution company's delivered brought quarter COVID-XX. history, third John. everyone. and operational We're conditions in highest to grew report the Thanks by revenue despite unfavorable recurring We both level machine another demonstrated disruptions flat. machine $XX.X backlog third continued morning revenue third $XX.X XX-month in increase the XXXX. XXXX. of driven XXX% XXXX of million million On while quarter quarter a remained of was a primarily was The basis revenue with XD revenue compared in revenue of up a quarter to QX increase by revenue $XX.X in through million recurring total trailing printing million from the in $XX the our through

quarter year to $XX.X than of doubled fourth from sales more X machines Trailing printing $XX.X favorable and introductions. million led quarter XX month quarter to XX Pro volumes to S-Max compared our XXXX. of quarter $XX.X the million of of million the the higher product XXXX Pro through machines sold. were prior machine XD including mix quarter and mentioned in XXXX the by XX through compared As third the in The third platforms contributions million a sales third

to move the period. I'll Now sales unit machine for

our include platform. as Plus for Pro industry's and and metal reminder platforms delivered and and Pro, components as print ceramic our Innovent XX applications XX XX Innovent platform direct recently XD metal printer as to machines well be a Pro soon the and M-Flex our XXX such announced parts our industrial other largest As

print typically generate which and and include our and molds S-Max average platforms Pro, indirect footprint our higher larger such machines S-Print S-Max value. cores systems tools our a as sand indirect Our sales machines are

which Our sales platform direct machine have priced heavily historically our is a to metal system. entry-level Innovent leaned lower

with by the difficult was direct consisted quarter sales X to in machines. XXXX. further and in the has our recognized on navigate ability our the We printing value the third increase of system the installations. value Pro XX Pro However, to on executing COVID-XX were compared average and recognized machines sales We clearly quarter The XXXX. increased the introduction seven our of global we influenced conditions units average full XXX direct in QX indirect our third direct anticipate team unit of and XX in to The machines of current resiliency pleased introduction recent XX our of display. our six quarter market platform

applications As an a industrial set organization and mix which diverse and and a of we continue of research includes users. to global development geographies sell customer into

market and research printing development due installed revenue focus last materials principally which after by million services and base funded our the flat our year. sand to for market end the XD company offset as decreases revenue printed growing the demand for automotive printers at were recurring of includes compared largely by in lower of by area we're services driven in COVID-XX. X.X global of products strategic quarter Our a in about market brought other and and third Increases to

X.X a in growth that revenue driven increased recurring offset services year-on-year aftermarket, by funded decrease see recurring a While consumable which million in flat material quarter revenue to are in on by and we the R&D sequentially revenue. basis encouraged revenues from were was printing second

period. $XX trailing the compared million to recurring prior the million was revenue year in $XX.X months XX For

of decrease For introduction various quarter period platform XX.X% quarter following margin XX well the product contribution system Pro was warranty including unfavorable The discontinued compared XXXX. on to during the low third as margin to a initial experience. in market sand the due the as XX sales sale and primarily third the of its gross of system XX.X%

margin XX For to gross XX.X% period. of year prior in the compared the months trailing XX.X%

took and and mix all response various on spending liquidity. to in mentioned pay including decreases in in savings employee conserve As call we COVID-XX, a cash I of an QX cost and adequate rate to effort reductions terminations, maintain actions other furloughs, our consulting

sustained quarter. expected As global in we actions the an in savings we as of these cost savings cost and savings estimate $X $X with as third million cost the such million million travel, realized remainder of other into additional million reduced to costs the for in We the million XXXX. to $X a result approximately X $X range of total of XXXX approximately approximately XXXX

For X.X the quarter our expenses associated and X consulting expenses were with periods. was third cost quarter operating projects. Research XXXX. cost X.X from third in year savings to COVID-XX million in total lower development million reductions and compared the million prior material machine other million and to of primarily due X.X decreased decrease to and The measures associated spend with the development

XXXX an of expense show For increase QX, X.X and an factors commission's expenses net associated through combination reductions to the as X.X including X.X million compensation from XX trade lower by lower well trailing and Selling, administrative general XXXX. decrease bad through QX, by was a as travel absence months with for were cost of R&D million incentive reversal COVID-XX XXXX. million QX, XXXX. This the expense debt X.X in and sales compared expenses offset and million was driven versus

third million XX.X the quarter months XXXX trailing XXXX. compared quarter XX million through to SG&A through was For third XX.X

Turning backlog. our to

backlog portion recurring non-cancelable a as agreements. As our machine orders of operating well our maintenance machine It reminder our includes contracts received also lease our from revenue customers. committed as firmly includes and the

XX.X an including Additionally another global metal orders balance our other We increase ended backlog with research and record contractual of an million includes sand for and of to of operations end XX% backlog QX quarter the the printing compared funded end the and services the of and development. compared as million at quarter of at of to XX% increase million XX.X XXXX. as XX.X second third

million XX.X increases. third units totaling sequential both XX quarter Our quarter machine total backlog includes orders representing

with development Our government backlog the research benefited secured from increase in increase federal firmly million. X approximately contracts also and of an

from from increase financing sheet the The cash as June the to timing from for million XX, restricted inflows cash, equivalents a in Moving was outflows by reduction primarily XX.X increased from XX balance of and payments. cash including were based of of September due XX, on total equity XX.X to driven X.X million activities of items of period million XXXX of net cash this million non-cash widening at of sales. cash XX.X cash that operations customers Offsetting the million to inflows XXXX. and loss

million there the for Our We party related third million of X during equivalents cash focused borrowings $XXX,XXX driven the The at expect no of revolving that as remainder increased quarter were cash million on end unrestricted limited were capital under cash credit second which outstanding planned the by and of existing facility acquisition quarter the party to XXXX cash the our changes to we which strategic related the in million the our less includes the at expenditures end facility deployment. our credit compared operations for I under XX.X and and period. remain XX.X increase liquidity and cash will third to $XX CapEx availability total discussed revolving asset quarter. of and just company's was than

and As confidence our quarter significant operations. duration vigilant of it plan associated and backlog uncertainties us its related we impact give for said John as we markets we into liquidity mentioned on and the to and COVID-XX the remain serve with severity and That our the as head position the enhanced relates XXXX. fourth

take and be is As prepared a this goal our now market concludes questions. effectively business enhancing to in binder would happy crisis previously strength through and it technology. in our jetting exit we've your further position leading position stated That manage our of remarks our we to

time this Brian Partners. be question. Instructions] proceed conducting from question will a session. question-and-answer is Kinstlinger Please your with Our [Operator Alliance we At Global first with

Great. see Good stronger morning. this Nice position. to cash

trends in the You gross margin However, expense. you applicable the XX system in a margin if please? of release how as such introduction on and press I'm of on discontinued variety struggling for surge each plunge? and product and touch might the sales margin how unfavorable on warranty low with of sale the each understanding these these the revenue the Can on and impact reasons mentioned persist

Sure Brian. This is Doug.

and system side quarter things the So couple was systems the still to one was the an the system that which margin $X that sale yet breakeven. that able during one to unit effectively out. we sell on sold We slightly a were system. million the was to and retained Number above a our to of greater was relating point user sales we same than discontinued in that in-house exterior XXXX discontinued existing

get So win-win then after-market for to operations their to to that. the a company and and favorable both we material were tied sort the of agreement with sales happy that to expand customer continued

Pro ongoing had XX a of discussion the bit On little here. we've

our lot and This we took that bit with calls a built binder little done recently. sheet that one up. in this the jetting think couple up and the of we've introduced different of we've this is some a of than paper I started last a other platforms this a is blank of so from ground sort tech

So set through likely likely that margin expect than market the to we QX in and yet, are typically lower systems are back the other costs associated introduced to this at of some XXXX. but of disruption of are that units woods we're normalize one see rate really first of we sell. not coming with that on seeing a return manufacturing what out quite for we is we we're in Ultimately to to here systems sell what the probably QX

to part warranty for some stand On there product. side we most well disruption on relative had the as our the

quarter. don't of a a product we that again in in and kind recur. to did So most hiccup or of little We experience the bit introduction expect a recent introductions new had product XXXX

of a We relates having have when equation a warranty strong pretty it balanced history to experience.

for So XX that we're points. cost that into I in to take up is those All something charges all future. margin expecting probably it's type estimate about you when any that my mean not add rough the us of abnormal all components

Pro only component ahead. probably that the our So we continuing XX in would going piece have future into that's foresee with the plans the that of

helpful. Very helpful. That's Great.

prospective to a industry annual XX% strong quarter the is as at get this the levels. of and investors from as slide estimates market your starting in compound way revenue XXXX now and even standpoint was I questions well One the just back forward about going is track rate deck be from to XX while on very revenue to you're growth probably

manufacturing XX I in in course? COVID hasn't participated late why as of the So do notwithstanding hindsight you additive think guess market of

Hi Brian. Thanks. Yes.

the So a obviously recovery shown a our in now into I our We're results. period backlog it's seeing a and a went current say would of in economy growth took as XXXX. that bit as pause hold our good manufacturing

The that come industry and look decided second potential the the that players of thing we're frankly at news is machines our where also had into looked and is to good there other back seeing within as were and introduced camp a a they've that's suppliers take forward backlog. the move benefit customers number at alternative

say I'd positive think So additive and think those reconfiguration decentralization which supply I a, getting we exactly done chain and going our we production which for is both in prototypes, will Yes way times side, talk also reasons of rates so about manufacturing just the many and manufacturing be but forward. is there growth manufacturing, the where really much is that excel today. we additive for not interest why we're being leverages a

gives for there perspective past and think pause a I think future. So and I the little it promise us of the that gives the you great

more One right. question. All

market the right just through binder introduce it's first they're increased course printer boasting on metal investments going the marketing a a to jetting? do how how more and plan do that in speed or year they're second for faster binder of next in question plan capital [Indiscernible] And plan P&L a twofold the then jetting that sales go make awareness at through you With they're create will your their significant machine. a binder capital now jetting process than to you that's

think faster deployment? so you in a twofold capital speed a do about printer So on question investments

both that that it our capability. we've as and started growth opportunities presence and where capital we've Doug just nobody our said many add in get globally in coverage marketing, I'll Yes we've to leader can new and marketing we you Yes. got and increased a in. to far rates covered we've invest also footprint brand organic expand you increased think sales in I reps had as our before, remotely hired space Asia-Pacific and through as

So we to continue see material our opportunities see opportunities expand there. We to palette.

We with have the we're materials, materials new in through but the these deck. described in customers we some on. actually range significant slide development capital customer many with we're that new process as and my interest times is that to to working sorts more that in a And put of causing introduce collaborating was of customers us those new script I adoption sustain projects

of on that question. the So the first part

I organic they're and with think plenty our growth aligned in we those needs. excited really invest and we're of customer times very many to about have places

other reliable is when we XX Their now number have is are of material and it's Absolutely, of right of parts machines term. buying deliver out improved and consideration. customers helps NDAs, forward quality and high ability is customers customers to we out we have look in we folks buying that the primary to de-risk look printers delivering doing mean, claims think consideration parts customers certain which under talk not I the a deliver our in and there do years That think but than fashion. every and you our map, there? the I Matter the what road we're the with in things on to that On speed reliable fact, quality in can their not one claims lot again is we're there's the prove fashion them long journey. share is only with ability more thing service one to for we customers a consideration. model the a important adoption productivity again of understand their been I of those day if

think that's is accelerate that So seeing and these partner to customers in I of future. of benefit the type the some now right are we expect we're because the we with

my Great. so questions. for Thanks much answering

Thanks Take Yes. care. Brian.

Sarkis And with our Sherbetchyan Riley is Please your proceed from next Securities. B. question. circus with question

question Good here. morning and thanks for taking my

morning. Good Sure.

business? awarded funded you Hi from portion material growing on the a of more little maybe touch John, does for mean I that released you the increase you've your sales what interesting ultimately business know then maybe some bit releases kind and example do what for Force that and maybe systems States contract United can just on recently touch of that regarding see the means over time? R&D? Air How

Yes. Sure.

R&D printing. to still capabilities So of new relatively part aspect and material really the for has customers many funded is to binder opportunities is palette production dramatic and the expand of saying XD the jetting

So look to customers your and things together to saying need financially we on going to are help this we're we make happen. need to work these

some of Sometimes was are that's almost Doug few we mentioned last government seen customers recent backlog there. success this X in increase It about of was and some and that initiative quarter. in an he our years the million those talked of have as an success where our started customers

running to out come those remember tend quarter. eight Those be next the contracts over don't Now quarters.

either scope be and together we year multiple machines, beyond contracts. expect that secondly commercial in many leads applications, machines. both and for that and individual that, revenue the customers to we of proving steps, Within I'll not opportunities production is at materials, improvement include that validation that we the we're to effort new so our high with out what new contribution R&D end times future they but to with all of work for we many have absolute an these geometries, cases So of into the the recurring with in can that just those the go to ask metal them next slide a and work funded and case new in new part their deck business new for model prove platforms and R&D volume go that in that doing adoption opportunities cases technical actually

of there at a they're a a for that work positive it's and frankly positive machine things very customer is couple in years. future. It's for in rainbow, us the selling the the end some not not hoping news and just So news just because promise

We that every are their up that to throughout then this confidence and to to substantial have requirements many the meet step will of spend times new proving meet journey of future. they capital the facilities set to them their requirements parts

you if processes to this or a And start obviously flow kind how systems processes machine set you your through for back sell and do about How that think be Understood. does of on as sales process anticipate up it perspective more from through whether and kind those sales? material increased and of step long you taking from benefit these finish then customers?

Yes.

So up of and challenging volume. again more a times and/or significant in steps lot applications are these

and their say geometries, that to we're taking new facility it into from our machine their machines. multiple expenditures. We're inside one validating running materials, and Then is first one doing from up boards cases; see to own going with capital machine because scaling and before their then five, moving three the with their they're times they're on customers again moving the validating we're large we in of facility. five-step materials, these working anywhere timeline through. are working We're working we one that that process years that So own custom many to

customers process substantially this frankly sort to they improved a a new are They them for help year own. doing one of or new end is three product times ten products five they're a of not to and are ago. their So have of product designed years initiatives and process lot that for doing this existing our their that

exciting really to that it's on So work journey. them with

come Understood kind to real and backlog of just wanted quickly. the back to

that machine the well. million up in you as was mentioned think was contract that backlog comments X up quarter-on-quarter I and I government bucks you in think mentioned system just backlog

help just $X there's backlog million. about up maybe if total missing that the maybe math I'm was me you Can the understand So something there? or

right. think I have that No you

increase other increased portion So or the XX.X added recognition the streams work all the that of backlog here of in been of recurring QX, other the on to from remaining have the on GovCon we then basis offset a piece means would which that to which machine tied Q-on-Q, side. XX.X was by and reductions sales

Got it.

of the So was that about sales of way to right is backlog recognized in just simply burn being it? stated think it

Yes.

and to it. of regarding to wanted just Good come Got kind the back the discussion margin.

an what's the mentioned to order margin into XX that on just be continue sales could want looks associated XQ that Pro with XX. so was of magnitude more to of magnitude the You growing and the understand so disruption the think I kind What's the like basis. of machine, incremental as what should contribution

the in and slightly Yes. the of hard necessarily we'll It's the have any into the visibility a little I depending last mix the we a sales represents timing have do every bit and perfect than to customer on particular say application because different configuration machine or sale don't that that don't, period. we

driven finger a that sales has assumption sort breakup XX put might you wouldn't coming and look early of specific what done on some the to But will bit because to necessarily this like in the margin pretty the quarter and Pros what point. the margin part is somewhere We've on return. I'd about of look impact doing much in those QX history I better do we XXXX. manufacturing to reduced better a XQs that. the points I through think at of for again for continue to the maybe in three simply it's little current two current at thinking quarter the related again shown When a on say estimate

I back and That's just given and cost X X the that's and you was the Was sustained the right saves million the million to million to No. number? rolling X helpful in remind into the just think circling X piece me XX? upcoming mentioned then XXXX savings that into million forward

Correct.

X between million X million. Somewhere to

and permanent X is I've those had reason on didn't representative is quarter that I of predominantly about that the range on that's we the That we continue set think would X.X. last that terminations to really X XXXX. replenish. widened number into employee been for that to costs

incremental to would the to Is SG&A through really support product kind marketing of rollout right be any of think it? coming And and initiatives. the way kind new about that

Yes.

I selling would to that. extent cost see and/or the the costs a other up variable that come operations you variable commercial think dictate

So would that's I where think earmark stable. otherwise really we're we increases pretty

so That's me. for Thank all you much.

Perfect. Yes. Thanks.

Please question from Our Canaccord. proceed Jed with Dorsheimer Instructions] is your next [Operator with question.

quarter. job Hi, the thanks guys. Nice on

have housekeeping think been my questions most already. asked and of I answered

So articulate John how I'm to and of terms the side high terms any on seeing of some quantify customers or business. just respect you curious the side with of be to level the able direct you're might of in efforts interest fan the on cross-pollination maybe in what larger

Thanks Jed.

the good number a I incorporated relationships is news long their standing we within core of and printing So and OEMs who with own digital have as foundries mold have mentioned operations. sand

production thing other in and of companies had experience purely prototyping. opposed that production those actually are side. at we're if I The doing the our play about how that several about have our to the on they that customers things us and with sand starting That scale model for are adoption is in as is readiness understand to think

familiar is the we that teams. and the some exciting because example core for sand of of players the and we're of modularity building technology our business know those and into our XX this the in components I robust of when to software. and frankly the expending think XX the technology of understand have technology lot same which they frankly with these pillar a that Pro, some already and understand talk they're taking truly very expectations about production-ready that So They and reliable that scaling I

We a it, extensive benefit. seeing So too. is the how in will and but the or business large that be, industrial some weren't in we sure aspects defense automotive more it it are probably seeing

perspective, EVs has has of some in printing positions So at I now from Tesla XD mean, we a systems the looking what they're of if timing terms openly in racks open to hire. done Tesla is look around

for is Tesla Avant-Garde So EV. kind if of we look at

traditional of side to you the kind and train you in EV the will. have many seen need leader is a fall You've going casting if on or what have plans for other we've a that OEMs of on which, side are also of got relationships the to the of technologies as sand

a you those situation guess just or how you think translate to of do a more it's I order? sort RFP do an or timing of into well as So as queries

vehicle say majority lightweight a of that XD future customers ability either the they a hybrid or is see or absolutely it EV. their to whether NEV print I'd to whether vital Yes traditional parts the automotive is Sure.

it think I a is of time. So matter

the part takes these the to to It on start are time to light set the extent, supply scale for cases traditional weighting ability product the and thing and automotive platform, production it EV the it a production in holds get and to it look are that the base metal that at you is their space for type XXX and had for this platforms. design be them oriented firms gets they looking us side hybrid the but get increasingly would XD discussions other and of just an trying companies lot solution some of companies them are of I more newer and scale solutions the out and we've for to be could of for If or their produce. same printing They throughputs to get are direct a looking to same leveraging comp, of they're chain finalize can number material the be at a parts time depending the finalized, larger in thing. and could and nice say on the started that a at a significant moving who true their is sand the the the EV particularly do with but knowledge in basis timing the production

think XD I printing be years direct for whether firms we I see or exciting multi-machine think spells that of when again that sorts the us. few So going indirect the these of metal next it to looks, in quite are adoption and opportunities when

a is where reliability additives Got hitting robustness in the as along but of of sort do to technology in the newer sand straightforward. pretty it's terms specs from of of I and don't say casting It more and if whereas want tried that's convincing, part the fall example the it true. of lines seems a you so for

a at both to lead look lightweight. you if kind So of the can path of

need remove see being in weighting that really or of as direct additive process? first side you see to OEM before to get the to it path terms your the sand the lasers you is might On casting excess material light that of from dependent lightweight. kind you that Do

understand casting So digital Sand It's established. XD as you sand both. for casting both said, casting People sand and more is for it's direct metal. printed metallurgy.

are are and that is on such capital real comfortable the on platform they per expenditures several the talking are shorter. that And feel press may what want to projects up now we for where it So But probably mention through that to button the again would working production but I adaption or gotten platform. you to the they times in the to their is XXXX, described. the claims or into that's that model I past but may automation, speed can we again production they on model companies of about automotive have come concerns adaption People on the cost about are large getting metallurgy, that in be projects tackle may XXXX. side, that some working this when sorts validating this companies need customers excited get part proposals, time, cycle really say with where ahead, and we

they degrees have work point. does deploy high their line systems at really So meet requirements confidence us that sort that time to and with that's ensure production to of

that and win the mid short, have long we term So customer pass helps there.

and you. you up thank for keep it Well good breaks Great. the and hopefully work

your Appreciate Absolutely. time.

Okay. Are there any other questions?

We I John closing with are over Hartner to finished will now the for question-and-answer the call remarks. session. turn

your so a quarter fourth you safe the and time the questions. Take good for to our in forward New today Bye. look at care. end you fourth your again quarter. after thank and attention We talking Everybody have and to much Year and

you may today's this time. conference at And for your your disconnect this line participation. you Thank concludes and