As if there wasn’t enough uncertainty within the 3D printing space as of late, ExOne (NASDAQ: XONE) today threw another wrench into the works as they delayed their first quarter, 2015 financial report.
It’s been a chaotic last six months for earnings within the industry, with 3D printing giants Stratasys and 3D Systems both revising their guidance lower, prior to reporting less than spectacular earnings for this last quarter. The industry needs a catalyst after the onslaught of short sellers and negative news seems to continue to pile onto some of the darling stocks of 2013-2014.
With ExOne originally scheduled to report tomorrow morning, investors had hoped that perhaps they would be the company to spark the turn around within the industry. Unfortunately that will not be the case, at least not until early June, when the company says they will finally report their quarterly numbers.
The cause of the delay stems back to news that the company announced at the end of March, disclosing material weaknesses in the design and operating effectiveness of their internal control over financial reporting. At the time, ExOne stated that they did not maintain adequate control with respect to the application of GAAP accounting, and that reporting was cumbersome because each of their primary locations (Japan, US, Germany and Italy) used different platforms for recording, processing and summarizing transactions.
In order to address these issues, ExOne decided in January to begin implementing a new Enterprise Resource Planning (ERP) software across all their locations. This process is moving along, we are told, and will improve their financial reporting disclosure controls, but is taking longer than they had foreseen. This has led to the company not being able to file their first quarter report on time, thus forcing them to file Form 12b-25 with the SEC to provide them the necessary extension needed.
“We are disappointed to be experiencing this reporting delay but recognize the importance of ensuring a comprehensive and correct closing process,” explained S. Kent Rockwell, Chairman and CEO of ExOne. “We are putting forth extensive efforts to ensure the accuracy of our reported results as expeditiously as possible. Despite such reporting delays, we remain confident with the opportunities that our binder jetting technology presents in both the near-term and long-term, including our previously provided 2015 guidance.”
With all this said, Exone has seemingly pleased the market somewhat today, reiterating the guidance they had set forth for the year back in March which includes revenue between $58 to $66 million and a gross margin expected to come in between 36% and 40%. The stock is currently up 3.34% on the day.
Are you a shareholder in this company? Let’s hear your thoughts on this reporting delay by ExOne. Discuss in the ExOne Financial Results forum thread on 3DPB.com.