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XONE ExOne

Participants
Karen Howard IR
Jim McCarley Chief Executive Officer
Brian Smith Chief Financial Officer and Treasurer
Dan Drawbaugh B. Riley FBR
Bobby Burleson Canaccord
Call transcript
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Operator

Greetings and welcome to the ExOne Company First quarter 2018 Financial Results. At this time, all participants are in a listen-only mode. A brief 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 Karen Howard, Investor Relations for the ExOne Company. you. Thank Ms. begin. may you Howard,

Karen Howard

X, you, Jeremy, time results ago. our We your on afternoon Officer call. today release with were are Jim that time and Smith, for our a good Slide deck today slide financial to everyone. published the the press first line Referring and McCarley, this me appreciate our our Thank on quarter conference and afternoon Officer short results Financial Chief reviewing and Jim the Executive distributed just Treasurer. Brian Brian Chief will be in XXXX

release, If statement. you are don't available On Slide Web have will site. discussion Web that site. that The today accompany X our our it's slides is Harbor our Safe on posted also on our

will apply cause are that to and other events discuss Securities in non-GAAP to can where Exchange also release risks the we may as forward-looking may uncertainties the as well are other aware, in Commission. some which filed and point out some our or useful today. to as believe provided want and These presentation subject evaluating call, factors by our with may company to financial you These statements today's as documents and future statements during documents could Web on we this be be the I performance. found in site earnings and the These well factors www.sec.gov. actual we from during that measures, risks also uncertainties results we make differ that are are Q&A. during As other

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

perspective to will pleasure it's results a you with of comparable our Jim. table and first results before open XXXX to provided GAAP the in call started turn release. Brian that, earnings to quarter to the detailed we for go non-GAAP we'll have turn the back it on and the up my We and our summarizing financial the Jim will to Jim begin through get offer with then review questions of measures And reconciliations today's progress. accompanying to over lines and outlook answers.

Jim McCarley

afternoon. dynamics Karen you, because begin in talking are Slide to again good binder and and business of today I jetting our growing want these Thank X, conversation adoption important very both XXXX. about ExOne's on

last jetting Printers Let's jetting in start the is adoption. Every binder overall indicator and acceptance observed increasing. with of are the six leading showing growing, expanding. binder jetting is sales printed year are we components with particularly customer binder and Industry-wide jetting trends. have last technologies months binder but over positive based

in growing let's are company ExOne. additive leaders and ExOne’s make machine Now about the at of printed talk the sales a rate our one industry. that product

We the and of jet are the printed with binder production components in sale leading and supplier machine. printers of leader market a market our

with combinations and of suite Our installed and base market. in machines and sizes equipment terms printers of in largest material the of widest most of the configurable range binder the offer options printer

workhorse our as uptick machine for Innovent S-Max in demand a solid see sales. as to continue We well solid

the Brian sales side, pipeline QX components this consists XX% printed but XX% potential grow Last more project least, ExOne's not basis. detail, of non-machine the On robust. rates list can we put of a pipeline on of ExOne continues also greater year-over-year spanning to grew remains over repeat XX but simply finally, business and future. And Later, customers. for customers, in XX over describe ExOne a direct than projects in revenues this active foreseeable will resounding our at believe,

a color. Slide let's provide X little and you to more Now operational please turn

meeting Sand non-machine. If $XX.X year-over-year. key revenue are Machine growth; XXXX, by to revenues product and total included XX% exited for solid million, X% achieved Here ExOne technical with adjusted grew 'XX XX% line platform improvement revenue profits our plan some towards this Gross by of to the our XXXX. QX 'XX pleased printing in revenue goals X% test progressing on accelerate support versus QX ExOne and our takeaways as of quarter in from also our our over and grew QX machine coarse into Innovent first in revenue, fine improved our we focused Molding core quarter. suite XXXX. on well delivered powder $X.X can in facility. to start by of expect team's efforts technical market Sales we cost of and begin printed X year-over-year bullish we that Overall, into R&D grew machines newest we and industrial and machine and year. as XX% of the our S-Max million. And ExOne’s progress components to are X%. X are efforts traditional are sequentially company articles this of university R&D and initiatives

Brian to you walk through he the and financials. QX Now, I'll it can over turn

Brian Smith

good and afternoon Jim everyone. Thanks

could we'll you If start revenue. to turn X, with please Slide

the Jim As to with year, from up $XX our XXXX last so basis revenue XXX,XXX comparable Recall had XXXX product in eliminating QX we QX XXXX. was QX specialty compared the nearly after of revenue exited XX% machining quarter. revenue said, X% increased million line for in

that in contributed and showing in machine our revenue quarter at for mentioned had of Our less the be quarter call growth XX%. in revenue strong We had non-machine than the total March will this guidance year-end year our revenue XX%. of a about XX%

grew product XX% XXXX XX%. trailing up nearly line, adjusted XX, year over XXXX up the was to For $XX the over the when revenue comparable million. Again, TTM's our period, for exited

if Slide Now, to X. please you'll turn

of repeat is X% quarter QX S-Max S-Max's We aerospace and foundry customers. $X.X 'XX in Worth see these two the QX'XX. customer pump our the sold automotive. into the sold a that sold sales significant was to to first diversified compared customer the with machines. in versus There to industry, industry, in up three machines can one were of with more you waiting 'XX. machine are noting machine that were machine Included million quarter sales, machine our Here our

One current year. seventh machine backlog will our this I that customer. purchased deliver of to two the included expect and and purchased sixth that these second in the the those of half eighth by machines be this machine is by last customer would being mention that in we also

We ExOne. to also all were sold customers the these machines company. Innovent machines ceramic in And a three medical quarter. to products a These and to device machine of university, new to sold company were engineered a

Referring on We mix who right-side very machine slide, the the see or are can with expanding XX% TTM the adopting are of were the million. our as over that up time. over to XX services QX TTM this for you those with of to XXXX the are customers well geography technology it as application chart period trailing XX-month pleased $XX first sales revenue the

please Now, to turn XX. Slide

our backlog. 'XX. Here, shipped our and are At for you and in-transit, direct units or the customers printing the in machines one quarter type of the of of were include will accepted and installed of by our of X indirect see are machine that quarter were in still shipments in recorded X recorded our printing machines in first of machines. larger in by in 'XX revenue end, revenue six therefore there machines being We machine units 'XX. quarter process and Those of first and

will continues a certain of this and/or happen shipments. period. terms, between shipment in that recognition. for number revenue to be This can performance a lease to a S-Max one shipped customer for including overseas in contract variability instances also There lags result and We reasons obligations, new

of growth. component reflects was QX our this significant Non-machine XX% please consumables, collectively revenue when parts spare increases a period you'll XX. first of primarily demand This to exited XX% reflects a at included in the moderate over was in and million our are highest in XXXX. rate by the Also direct Slide service, 'XX, This rate start the adjusted and other if category of for of revenue more growth rates. line, Now, which in metal $X.X of growth and ever grew it on product XXXX PSC. quarter driven sales

Offsetting jetting lower of exited but product our dampen indirect impact the consumables sales time, cost We area. continue with think for sales center our supply center service binder principally growth our chain non-machine service to serves lower helps period, adoption to due our XX-month our which was areas to customers, the our technology, machine grew our absent our growth this efforts of trailing in line, revenue we at XX%. in customers. these rate from revenue On a drive a rates at to

know mid-XXXX. to as to have that talked I well operating machine service and or the includes to for eight increase as an well I includes contract. if on Missile through extend XX% backlog parts as service such $XX.X their in Agency made mention year as we Slide and that includes from non-cancelable. Government end. of centers Backlog machines sand It contractual or are later orders taken we XX, million want from of includes and of our units Backlog metal production here Defense orders other with quarter turn firm that you'll the This as customers. delivery from year finished contracts about our orders of earlier dates. received you Now, recently as for from that were X aware contract ongoing fund intention that our leases also services transit production

of terms that our quarter. includes operating are capacity of this a in far is have production from our three review the This machine but activity in machines or activity this customer see we additional thus under This includes and is are with order XX expanding to customer of in principally total A group its of M-Flex already fall We production received facility. that technology orders anticipating quarter. and their final serving waiting this automotive XX M-Flex continue industry. for to have into This negotiating first the days an terms. QX customer is machines strong both customers those we accepted activity and an

in German XX% versus from of charges asset as inventory last from XX, well Slide benefited had and gross compared Gross XXXX the our for consolidation our profit as reserve TTM's in impacted former XXX,XXX the service by in XX% from cost and of talk impairments year we quarter XXXX a including actions prior margin. XXXX. last we reduction Las year, quarter. in Vegas higher of quarter's exit our first of net asset million, profit organization of XXXX March was a individual profited prior realign revenue gross last on margin the XXXX profit to impacted downs center resulting about Italy impairment totaling million gross asset also QX we'll In $X.X took costs quarter, margin out of Turning of restructuring million about were gross the businesses to into We net first our the a negatively QX called significant facility. margin $X.X From XXXX year. the our adoption for year In and we gain certain a sale that and about $X.X center production with write margin. our

third quarter. the the due we'll turn discuss first XXXX, first $X.X to on Please of year to consulting machines of Additionally Slide higher by from costs period the gross Comparing XXX,XXX. The SG&A. was and breakeven Exerial bad yielded quarter prior professional impacted down in including margins the XXXX offset of intangible sale expenses debt to four TTM and and charges partially first asset and SG&A margin. impairment about the last recorded in were revenue of our which quarter personnel absent million the were XX XXXX quarter decrease

trailing was about up the $X.X our SG&A XX For months, million.

exited for of XXXX XXX,XXX and of about product. period associated employee XXX,XXX unusual our For intangibles with impairment costs includes TTM

binder maintain development advancement Jim external leading talent to Slide please The quarter the This of in for primarily investments earlier. our as we'll fine to first as meet you accelerated an activities over development R&D. $XXX,XXX continue quarter consists our mentioned resources XXXX technology XX, technology. first jetting position discuss if XXXX technology Now our increase and turn in to to advance and the we to particularly reflects internal IP demand development our powder

our As March, an the in to million $X additional $X printing spend discussed with of fine expect we in XXXX year principally million capabilities. you powder expand prior to R&D our we over in technology

XX please CapEx. to turn review Now Slide we'll and

Our were modest. very cash CapEx needs

with QX about cash XXX,XXX quarter 'XX. XXX,XXX was first for Our compared spending

XXX,XXX. large to as non-cash including the to format the you'll and For total. estimate PP&E was our third machine shown CapEx cash fine non-cash in quarter leases by machinery activity our mentioned million The of for from already portion items we XX, our between $X.X million $X will customer and be CapEx or about flows. well these own cash our QX a our see million to inventory activities pertains of development XXXX, as use service into XXXX PP&E in increased powder of our of second from development Slide we of order we quarter the strong transfers centers in our waterfall turn for here for R&D That I spending transfers inventory preparation impacted If inventory. $X.X shipments. current for machine given printing

We activity well collection of receivable as a also from in about usage activities. These items good working resulted about our had our for $X.X and $XXX,XXX on accounts capital. million other as generated items those

and about ended and that other the used loss we million in total of $XX.X cash. items non-cash net of at million QX Our $X.X quarter XXXX cash of

our sheet we virtually you'll on my available our prepared as XX, Slide turn credit and no it facility. drawn on balance comments I'll not to have debt to back Jim. turn That you'll see and concludes If we planned have

Jim McCarley

Please to Thank page Slide or you, Brian. XX. turn

talk let's about ExOne the Now technology.

a and on in terms minutes are As our you what an printing to development. I binder we mentioned bringing last value research jet and means take and to customers want few technology. the shareholders in call, to we to of improving ExOne our talk push from investment the this making expanding towards about our is accelerated initiating

project, greater Although, can't how cell approach the The the impact this want we development the and be of terms on have detail of to team powder that expect of machine areas our utilizing core quickly of I help we business. make to plan. base we are and format design printing how able will large underway in advancements. specific will activities to that fine machine leverage as I our previous large been on officially format and specific is investment existing capability. and Since you drive much we the lead do understand too the to an machine, our the focus building design

Our on work able we that one has cost as to multiple concept as possible. been also means that ensure team develop This if to design a paths parallel efficiently and effectively can well of into forward the can development. team of run phase forward begin if early the works more designs for our moving progress. maintaining next Likewise, will with challenges, options we have we

develop to we are to with machine's working customers a concept performance. beta the the addition process design, key to In machine perfect

based experience We Based trial end. in and targeting together that we experience we when as concept the are technical by and integrate powder success beta firsthand allow our year on second are be earlier Exerial in necessary project what trial as present will is machine where our team projects go. proof taking this to to learned will like they quarter a this customer our profit beta it approach on from this process product beginning of bringing currently improvements the anticipate scheduled, benefit well time fact A as what machine machine and development the successful. that a materials, fine with we're order a in

about expect these to from we efforts. the value Now, let's achieve talk

powder million, attention. expansion portfolio now November look our would At of every our our our printers. what team few overall driven these $XXX internal look represent XX% XXXX. has XX, graphs There by growth recent market market and Slide call excess be our for roadmap are pull six This since items primarily develop update, potential a we we our a to update At mature our market an intelligence the continued in grown this Let's assessment to most to potential like together is ExOne months. that future present potential to the technical course at when of I view performs to and was by sales of to level our your high of in last machine.

changes. our However, platform. continue potential consistent mix we no industry From standpoint, powder with prior from to see the significant the serve printing assessment fine good remains with plan an

layers. turn job go back XX. a nice industries graph assessment additional put have we some of products the to way. have and Slide from Although our together few try to different onion this in we peel more our data slide slices a showing Please This does a slides into the what will

a down shows As in a the views, in platform and the improved workhorse productivity, serving many the two and From are set a data you machine of this machine in that to platform. future point, you on will our can and overall market component Likewise, market deliver material of affordability. use see is that diversity investing something continue this known Products present platform for the our growth. why major graph an supports of in into machine time. part breaks core S-Max this both sales Together both use underpins left technology the key casting a had reliability, we long potential. use

XX. Next platform over the machine time same turn in the slide to shows this This fine Slide potential. in use powder data, but

multiple there Here are takeaway.

talk the First, three break machines out the these the in box into general size. focus, on is build more of slide. about I number will reduced machines break next

Second, our available therefore ExOne is and producing developing at us is in Innovent powder I profit. valuable and market that want is providing utilizing the insight products smallest into note the and fine platform, to now already

machine of the to accelerate XX% this on sales. total is imprint chart cloud over Third, why by This which platform of machine. represented format exactly represents the future machine we is the that the potential large development for chose

our printing what for visualize areas see large it format. small, our up of fine slide anticipate, You by platforms discussion, powders Slide will highest market help We to mean XX. move let's breakdown are areas Finishing now a a and this be might to in we you for -- to fine first. medium you use this added target potential products focusing the of can powder similar as in beta

is to the stops. on the product item this liberty be below. industrial a we printer. difference in type machine units there that the significant can the print on left, in be products information print Clearly, a large in in show taken able have to we versus engineering An format right and would what between our Innovent three the might machine of We everyday produced our

this to to is format our printer So team. reason clear move the to large

will the that develop is to on cost of and that not point combination key that be process be fine This powder is time clear. scalable means that enhanced the been may Innovent there to product That concert. However, one by will have developing we two so machine. be we platform believe in the the very large greatly format the these

I wrap value. part will the Now, final of this with comments up discussion some on

that is I confident created the this pointed continue growth that believe project illustrates, our right technology. for is solid will and and create know-how exceptionally markets very IP we As ExOne have fundamental to towards

believe on strength We continued is in our in improving our day. the marketplace also focus portfolio IP every increased resulting

to the needed to begin technologies from now get we are both that into are and using our prevent visibility rigorously into market the others a releasing more our grow marketplace to As ability protect taking actual new and as action business as we to the entrants monitoring IP.

Next market let's industry Slide some discuss overall and turn outlook. to and recent XX meetings

but about growing in Worth. last about a has months, year-over-year particular. the are of on at to expanding rapid talk attendees continued of answers clients rate. fit often skilled XX% of come magic exhibitioner. Manufacturers mind. a at from printing were Well-educated ExOne to Additive the both attendance and one first technology our time technologies review. of Not St. that to least conferences one use returning both coming Likewise larger and variety now to of this and large attendees. Furthermore, say would seriousness growth the how first a with time from with This participant, or know TCT increasing tapestry in resolve level the all, conference attracting additive for what conferences reinforced decision whether this fine year. together the the recently levels to But serve In politely technology at level XX% community available in perspective from booth Fort our technologies year many to part I'm noticeably their and do, rapidly they booth notable requirements Best technology address I'd couple additive X-ball real of in User it and very was Over held wide applications on most an by industry our in XXXX in notable answers the and account step, Based potential two believes specific experience. what into many how how to could Group, ready type wanted shows. the the closer these could in attendees of was at their given often need. powder of only technical format method today increased These demanding capability were on printer it guest additive to XXXX AMUG Louis benefited happy previous see during in like was the ExOne expanding purchase immediate our of for printing use education develop on on our our looking years the Innovent a need. our this team conferences are accepting

let's to Slide turn Finally, XX.

machine on lumpy revenue will a basis quarter-to-quarter continue. a Although recognition

We excess are in revenue XXXX including and our of reaffirming guidance XX%. confident are growth

to we questions. up phone lines open that with the can Now,

Operator

of Instructions] [Operator FBR. line the comes Van you. question from Riley Our Thank from Christopher first B. Horn

Dan Drawbaugh

Thanks is our Dan for on questions. for Chris. this line Drawbaugh taking Hi, the

Jim McCarley

Dan. Hi,

Brian Smith

Hi, Dan.

Dan Drawbaugh

Hi.

So just of your start XX projects than on in you that more to questions the couple that. a mentioned with remarks, prepared

that machines us could revenue what one it understand on and machine from help timeframe or represents what's you the XX can project is projects? a perspective, multiple one that So be

Jim McCarley

Yes.

multiple it’s I the number. XX XX it's greater from that's but for is would -- number get you of why likely and that tell a you a to the a most what customer, customer a XX machines in fair than machine, cases So, to

second good it's think see So, as for I part what of that the remind And And is up. question? the a most part one the we thing. me,

Dan Drawbaugh

give you us it about timeframe you're or was those? the thinking can just to curious if that kind of size know I

Jim McCarley

Yes.

out sort those little anywhere timeframe the will percent And success, you would projects, is over move a months. move next some X of to a go that it really will will the they of bit, move and some XX from out, a So in. know

can't it, I try I was sort you multiply you really of that for and a forecast to to much Dan, really trying that diversity just So there. just was trying contact get seeing. do what to number and a that of take how wasn't give we're flavor

Dan Drawbaugh

understood. Perfectly Thank you.

I a seeing additive broadly, can other and what talk names, in demand the There's you're in curious far about guys some it. overall as you guess demand I'm the your you environment some So far little been more environment commentary goes. as as as are seeing from you what guys mixed space, to other some overall know just

Jim McCarley

we're a not tell environment. We've customer pull. that expectations got said you in are this seeing on that Well, other weakening I -- calls, we're the seeing I've would higher.

you So to that. wanting more to really the and showing understand I’d tell do they're machine up expecting

interest good, customer the a really the not higher, from say are around technology. is biorhythm but I'd standpoint, the that really lower. expectations positive from So market We see the

really I'm on in on close we our opportunity the got gets with getting to customer I've back and said that it what think we bullish keep focusing alignment So to is, where technology is just expectations. repeatedly,

Dan Drawbaugh

bit comment specifically hear. couple good a Can That's last me. the little Thank to machines. then up This you. for Okay. call. came a you on of CHP last times And quarter's one

be were year? we to for about and you should in thinking seeing that looking that that that you playing accelerate Are specific how I line out XXXX. think this technology mentioned you

Jim McCarley

basis a marketplace going much in there. on healthy coming That's CHP a on the combination we've not running that introducing -- evolve think really because really how machines product. in makes what but real how case, We've got to other it the in nice continue with are binder it that a going requirement. list customer does representation closer just we're types I'm a to those to consistent it sand matter of. pretty really that that a of up at going us blend look the inside what that sand number characterize because things there you're fair terms of the and binder talked it takeaway matches that, move of is the some those, conversation binders machines requirements. what's that in handling that really of to represents to project up, is frankly I start these on so a got that to trying That's and the I And customer

Dan Drawbaugh

it. Thank I'll it helpful color. Got you. That's very there. leave

Jim McCarley

Thank you. Okay.

Brian Smith

Thanks.

Operator

next line from the question Canaccord. your proceed from Please Our comes with Bobby Burleson question. of

Bobby Burleson

guys. Hey,

Jim McCarley

Hey, Bobby.

Brian Smith

Bobby. Hey,

Bobby Burleson

work they just wondering, I sophisticated some ecosystem nice some finished from are and about And the ExOne into what I'm it a ground are on metal getting customer guys supply understand I'm like the some you made. the that entrant have – of can switching was coming of trying guys the the curious, [indiscernible] chains. in to you with costs kind customers chain. So, with wondering and sounds pretty that fulfilling And parts or traction role new capitalize of their given of process whole leverage is they're jetting what supply help players now powders the kind what's or kind stickiness market to of talking and then metal binder in as a now the

Jim McCarley

subtleties I'd the it's there's else's and So and going IP. differences to going is and I go And to replicate somebody over so product it, to that's that because think line be sure are are using used on going all and operates product there put the don't then you're works, be say think if the our have machine process how process development pretty different. case, the I'm with they're so process our our about develop -- to to high, used Otherwise, stickiness to a develop again. if be to in particular bring I how to want equipment a it's together somebody's to going

the time the in stickiness the part So is really around platforms. expense qualifying multiple of effort and same

the properties first, try is continue last inside thing, say achieve for variables on. is important material an there being the going to us a Bobby And the too. to think really of drive to to you're trying to machine is thing with equipment that So would the I lot I capitalize

switching I a high it's think cost pretty itself. So

Bobby Burleson

then, shrinkage. And as with print. Okay. terms speeds part the changes has the of looking over there's et large the customer per format machines? parts from these output new increase the machines some larger you to to in migrate start as I'm out obviously, on hour guys machines kind that the assuming these and as offerings of on of existing come the to you those again there speed you're move in higher Does cetera. things properties in of customer, like format are you Are working of qualifying parts the terms

Jim McCarley

Well, smaller right the to from And or the prototyping to people's don't about standpoint, at expecting larger. to the up know other that. there scalability here's be material our between even development I sample testing you machines. the we're level answer way the do that

However, there be different are is the areas that geometry different. part will itself because just

thing. sort simultaneously people kind and question centered. like learned our than to But smaller the part calculate that that the sort can on apply the able to centered it should But bigger more be they've and what understand the into that together small take something that's we be those between want one And and would a booked being just real and much because a very I equipment. edge Innovent we answer think we differently larger. unique book is part way to that why that selection that larger develop a platform printer our to So small can into being the of a you're acts of Bobby, asking you scale. being of That's

Bobby Burleson

then first we Is $XXX And opportunity a that of is and great. of there's that in for the assuming to opportunity half large on that large that just Everything that format? that think large as TAM put that if format print roughly I million different of you're a described Okay, a slide, I'm assessment? format big obviously and terms fair -- as market market at. you slides, that XXXX in looking go we that XX% if

Brian Smith

Yes.

a market. get looking correct is the and ExOne's that on, much I The that's slides that bigger. not is to the could into that's you're answer you by I you for. view the market market total the think only addressable addressable The will TAM not bound work thing, is through

Bobby Burleson

market, bound view talking by yours Can available… are about into by -- Okay. the ExOne's explain was you you

Jim McCarley

customers we are. they contact -- Sure, There These us. mean this contact market. there where that everybody We had that to that's that's out and casting and occurred. dialog on do based every we are I had the where some we've haven't we've market there is customers know Bobby. with level the customer with can't are in in touch invest in some of they level contact leads wants all we're can't got out our base in we that ran of

addressable much not Honestly market it it's information market. reason a of is. what a that subset real think only total So putting that's is the the I'm of kind smaller forward that, comfortable we is

Bobby Burleson

that it? the of terms kind share is your customer think market in of of market type the engagement Okay. What subset have? is you at guys do look -- of What the you when you

Jim McCarley

give to there the you just that thought makes don't other potential out think the am. people only why are know We're in I in the think information I marketplace. right I that can we can how competitors working a what's than our that's other other give sense I there a different of kind or ones fits I from against think mean against I sense. than out they're really also trying perspective. what of We you don't now that might -- playground I

Bobby Burleson

of to format printers like start proof in Okay. year of you much by get of concept as want bring you there to CapEx guys then, incremental sounds for Yes, it the you required ramping to the thinking this market? for the required. capacity how is end this large to and the And terms investment up, about fully

Brian Smith

To the ramp the of up production machine…

Jim McCarley

It our not It supply or our our building our and in existing will production will another or between chain. facilities be building. another production all be -- towards in renting Bobby. machining existing capabilities building We're

Bobby Burleson

Okay.

already made? reflected that in you've it's investments So the

Jim McCarley

Yes.

Brian Smith

Yes. right. That's

Bobby Burleson

I you then, potential that then, last think S-Max some by within an customer, of breaks that wondering a they customer. to prospect, format or one even how XX machine of just mix machine should lot about customer? talked And facing the we And Great. that type? is the large M-Print of down XX are guess, kind I'm a about that automotive there's what's that how or --

Jim McCarley

can that things lines one and using here. three more the year, Couple were of you're they're that to only X auto early they're be other I talking do taken orders -- about I customer in soon, and Okay. think this Couple M-Flex's will into be might had year. customers even go we to NDA. on of directions, period time later machines two a next you different covered one under the tell awarded they serving I is believe over pretty therefore, will machines be the expanding that three that and of industry M-Flex's and production they're that

up matching out capacity. their again production build So

out machine of of far because would As Those to a isn't the all list maybe all any printing -- way as in talking the there we're that of in potential existing there is customers I say that Exerial even fine that that about one in active our yet. customers, principally, way in out the pipeline in there. base powder way very machine not are S-Max events is our --

that's whole across machine it is So capabilities. -- the really of breadth our

Bobby Burleson

great. Thanks. Okay,

Jim McCarley

You bet.

Brian Smith

Okay. Thank you.

Jim McCarley

Bobby. Thanks

Operator

to the session. At end to I would management. is of over like time, turn the This this back question-and-answer conference the

Jim McCarley

with to a we'll appreciate spending a nice and you wish for I Have August. Well, some with want you look great it I everybody in talking today, we time it, being your back see thank our everyone days Okay. again in August. summer to off and and good We forward evening. results. certainly about

Operator

today's concludes This teleconference.

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