R&D expense of $3.2 million for the quarter was up $0.9 million compared with the 2017 second quarter. The increase was primarily due to employee-related costs and consulting and professional fees incurred to accelerate new product development activities during 2018, as well as the unfavorable impact of exchange rate changes.
SG&A expense was $6.4 million compared with $6.0 million in the 2018 second quarter. The increase was primarily due to employee-related costs including termination costs associated with the previously announced executive leadership changes and global cost realignment, as well as the unfavorable impact of exchange rate changes.
The 2018 second quarter net loss was $8.0 million, or $0.50 per share, compared with a $6.4 million net loss, or $0.40 per share, in the second quarter of 2017. The higher net loss was principally due to lower gross profit and higher operating expenses described above.
Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), a non-GAAP measure, was a $6.7 million loss in the 2018 second quarter, compared with a $4.8 million loss in last year’s second quarter. ExOne management believes that, when used in conjunction with other measures prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), Adjusted EBITDA assists in the understanding of its financial results. See the attached tables for important disclosures regarding the Company’s use of Adjusted EBITDA as well as a reconciliation of net loss (most directly comparable GAAP measure) to Adjusted EBITDA for the quarters ended June 30, 2018 and 2017.
First Half 2018 Review – Advancing Technology and Product Capabilities
|
($ in millions,
except per-share amounts) |
YTD 2018 | YTD 2017 | Change | % Change | |||||||||||||
| Gross profit | $ | 4.2 | $ | 3.6 | $ | 0.6 | 16 | % | |||||||||
| Gross margin | 18.5 | % | 16.7 | % | |||||||||||||
| Operating loss | ($14.4 | ) | ($13.0 | ) | ($1.4 | ) | (11 | %) | |||||||||
| Net loss | ($14.4 | ) | ($13.2 | ) | ($1.2 | ) | (9 | %) | |||||||||
| Diluted EPS | $ | (0.89 | ) | $ | (0.82 | ) | $ | (0.07 | ) | (9 | %) | ||||||
