Brian Smith, ExOne’s Chief Financial Officer, commented, “The obsolete inventory charges of $1.5 million are associated with the completion of a design evaluation of our Exerial™ platform, as well as other activities to enhance our machine platforms. These charges were for obsolete raw material and component inventories, principally Exerial™ machine frames and other fabricated components.”
R&D expenses of $2.3 million for the quarter were up $0.4 million compared with the 2016 second quarter, attributable to investments in internal talent and external resources for machine and organizational development activities.
SG&A expenses increased to $6.0 million compared with $4.7 million in the prior-year quarter, due to investments in internal talent and external resources for technology advancement, as well as the impact of a bad debt recovery in the prior-year second quarter.
The Company anticipates the higher investment levels in both R&D and SG&A to continue on an absolute dollar basis, but decline as a percent of sales, over the balance of 2017.
The 2017 second quarter net loss was $6.4 million, or $0.40 per share, compared with a $2.9 million net loss, or $0.18 per share, in the second quarter of 2016.
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), a non-GAAP measure, was a $4.8 million loss in the 2017 second quarter, compared with a $1.4 million loss in last year’s second quarter. ExOne management believes that, when used in conjunction with other measures prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), Adjusted EBITDA assists in the understanding of its financial results. See the attached tables for important disclosures regarding the Company’s use of Adjusted EBITDA as well as a reconciliation of net loss (most directly comparable GAAP measure) to Adjusted EBITDA for the quarters ended June 30, 2017 and 2016.
First Half 2017 Review – Focused On Advancing Technology and Customer Validation
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