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XONE ExOne

Participants
Monica Gould Investor Relations
John Hartner Chief Executive Officer
Doug Zemba Chief Financial Officer
Brian Kinstlinger Alliance Global Partners
Sarkis Sherbetchyan B. Riley
Jed Dorsheimer Canaccord Genuity
Call transcript
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Operator

Greetings. Welcome to The ExOne Company Second Quarter 2020 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. to for conference ExOne like Gould, to now Relations Investor Company. would turn over the Monica I Thank you.

You may begin.

Monica Gould

XXXX XXXX Thank you, for June of results ExOne everyone. close. XX, ended operator, and the good second morning, yesterday aftermarket released quarter

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

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

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

John Hartner

earnings performing and second like everybody, to during our quarter call. for these start team times world thanking around year-to-date Good and by admirably a performance. Monica. delivering solid quarter morning, you, ExOne the I'd challenging and Thank the to welcome XXXX

truly Our within market. XD is the results showcase how differentiated ExOne's business

in with no both Overall, been ability concentration sale of as prudent of operating the or team's we on difficult revenue this funded which X% continued support period. is same the is R&D model. in already revenues to our made a base, we the $XX.X trailing more of up month progress strong the $X.X largely of We At for million, other increase aftermarket development services. diverse products, some we towards grow engineering our predictable year-on-year continued more to in is recurring backlog of and predictability geography of face here, the not since time, will to million, a machine the category has That a record and time. installed growth And due new We our we're any our two to continue times. on quarter, totals the which our execute consuming growth to liquidity, second $XX almost the This financing It's expanded one in performance well Also now prepared our type. emphasizing resiliency strategy the this worth model's million. of touch as canceled our continue quarter, highlights the our onset single Doug or COVID-XX that remarks. to his operational our achieved will pandemic. industry machine during also During revenue for backlog level. also XX execution contract actions, transactions delivered and a very with X%,

young. and growing remains at our be business presentation double-digit an available I'll yet that's even the remain Now, may but our as current that which industry, support the show relatively a website, points and the key part reminder, updated is ExOne market favorable billion we've how enhanced XD fundamentals printing investor on just released summarize by here, conditions. of $XX rates highly a that's

the tooling penetration X% is grow X% XD to chain. molds That $XXX parts and counts. example, upside XD end is market, favorably responsive on an has even estimated around only a ExOne production. that represents compelling. the For billion more printing more the number sustainable Within market. in And along is billion only use all expectations with printing positioned and these supply expected for increased a $XX production

solutions in In new our jetting into smart technology is binder sustainable fact, we believe as supply a sweet for and dynamic. X.X manufacturers industry really spot here, a look link chain that

of a metal printing flexibility. the direct in we incredible addition XD key As casting. XXXPro, of printing the jet move critical only metals XX printing printing printer for reminder, production. advantage ExOne, Recently, of November. and sand for is a itself to are with binder into our binder largest we industry's all, portfolio we our customers proving as we're announced one to than system, the In which molds metal won ExOne cores to jet its way that more last capable breakthrough used quick system, commitments a XD a for competitive solutions provider comprehensive ceramics first to on manufacturing for and tool and high date offers our metal volume This XX well materials metal

producing has and XXXPros plans. for customers become team release our the we target with first Our remain already on

which announced to for revenue than we've higher We on and complete closer we produce new continue announced these products other XXXX. in our XD used market. team the sand many enhances the user many the the These to S-Max we first been the ASP received Recently, intelligent experience. that market. machines requests year, a our of receive offerings expect this products. the inbound scale, printers, to and shipments recognition continue end to end production Pro support surround historic by at side in to same And by working the past includes have carry well Like our time, that interest digital machines workflow with two innovations effort. end and XXXX also At new is

industrial analyze XD monitor printers, environment. especially we a Scout and our our app new in factory connected First, launched to

development. printing new include and production Secondly, new we digital conveniently of These tap sand XD that program are manufacturers are automation as a but work this new contracts and can with ramp effort getting XD development is that sale In the and currently quick steps, and for machines complex associated tools production companies castings, with these print software first the ExOne, off ground. production engineering announced to continue the pathway will up tooling. creation also in the of workflow paved network a

revenue binder a printer. in jet the the Defense of contract is this U.S. of these are is as with machine So towards $X.X a part One leading recognized example million recurring sales. awarded Department which production future recently contracts growth field-deployable to develop of

for several is medical automotive, us goods one consumer we now to Beyond have manufacturers developments. modernize global can how production. these companies industries their printers on strategy chain government program support the in of use locations planning a in XD key least a awards, and production, to and streamlined our example supply of This local At printing and with engaged around the decentralize world. good quick is

sustainability. like sustainability we since have this At I'd founded. and existed company to to our ExOne, Finally, commitment deep this a was discuss on topic dedication has

print a throughout difference. manufacturing delivers scale high a the the that, saves waste make production of entire well manufacturing far these benefits process can the It the jet consolidation parts, XD as less process. energy traditional binder for ExOne lighter key volumes, But that as other enables at than parts. us truly Our generates of processes. It is

role So while call will growth the of transformation With results and may long-term optimistic business manufacturing turn will the printer be a traditional the more provide believe model. to short-term and remained sustainable fundamentals who decentralized a to and outlook. our in details quarter about the over manufacturing play global Doug the I'll second manufacturing. now additive turbulent, solutions about We we've critical the of our of that, that, financial

Doug Zemba

and XD restrictions, and other with international Both trend as and/or ended XXXX. sales Thanks, XXXX. quarterly quarter revenue, to $XX.X $XX.X to and of in basis, compared unfavorable services. through to of product due We delayed John a trailing total revenue COVID-XX, down disrupted were XD sold. $XX.X travel $XX.X a with coupled installation second through sales million, domestic month decrease decrease quarter, and The of million volumes sales products. shipping XX%, resulted Trailing quarter XX in by our in prior revenue materials compared the the from second million with COVID-XX, the in by which $X.X machine months our second delivery with an quarter in on was of prohibited increase million Good in Sales revenue our mix morning, Consistent in of million printing of XXXX, of products, machines, to result everyone. primarily quarter a backdrop of of our quarter of or $XX.X of printed million million of the to lower the second offset through XXXX. the of an million the of compared $XX.X second machines year the QX compared the XX through were second under machine were XXXX, comparable quarter, $X.X printing groups XD

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

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

Pro, machines platforms. tools print such S-Print S-Max and S-Max, as and cores indirect include sand Our molds, and

set value. sales footprint geographies direct sold and and and sales typically in quarter. again, mix generate larger of quarter five three diverse a consisted machines eight We second Our compared sold direct customer machine machines in a users. indirect of systems, second machines The quarter our research global eight in and a to higher industrial printing average are Once of the and a applications, development the prior XX during represented which the included QX machines.

and reflecting services quarter off our sales, both second and $X.X considered, and of products, of we recurring quarter, in market the second a our development whole. made X% basis, slowness TTM the XXXX. of drop the a and for abnormal XX revenue customers obviously which steep our a XX revenue indirect dedication machine in have saw of COVID-XX has projects, materials unprecedented This performance began XX by the quarter first to and growth which second business operations buying second While for the quarter research as we and by in direct includes was as was fourth second are other but were the quarter, of trends between development materials, revenue consumption began and sacrifice the result footprint we achievable arrangements, as first printed primarily of this year-on-year, quarter, period. and which decline in XXXX during disappointed in of funded market, attribute challenges of We the general brought quarter. investment million our in felt year automotive machines, XX in industrial XX in appear machine XD some increase global COVID-XX All the things of a of people. was the including machines direct to and over with which our XXXX an sold TTM recognize last Recurring our only On to the our a which area quarter. operations, reduce shutdowns Similar we second a driven the second XX to quarter. impact versus and in mostly that COVID-XX total indirect were our the we late the

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

the taken For reductions partially due second fixed decrease realized to driven quarter, overhead and to was gross of which result revenue lower quarter a XX.X% COVID-XX. primarily by volume, the actions XX.X% margin XXXX. costs, cited second of offset lower other The by cost of compared I as in

For the margin trailing to XX compared of XX.X% months, gross XX.X%.

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

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

the and quarter, million second Research were from COVID-XX. by The primarily lower from to $X.X the decreased the XXXX. in $X.X year total due to compared resulting employee in in to operating actions million period. to $X.X For expenses XX% X% related taken prior of expenses costs million, of response $X.X was decrease Development our quarter million

the including delivery for on binder jetting focused development remains XD we investments the for recently R&D our of system, customer XXXPro commitments secured production XXXX. in XX printing first technology, printing Our further metal which

QX $X.X including were lower compared was This million by months, Selling, million For well and of XXXX. million compensation. factors, driven COVID-XX through XXXX associated through the as cost trailing QX $X.X QX expenses and XXXX. $X.X R&D equity-based XX% $X.X million, trade was XX for lower a expenses of show with administrative decrease reductions as general versus combination to

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

Turning to our backlog.

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

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

Our to full machine predict of decisions representing the our totaling customers. for to at it longer-term this COVID-XX time, and including second $XX.X quarter continue future year on million, us our and difficult equipment the make total business duration uncertainties backlog capital on with effect of spending units. XX severity the impact orders associated includes Significant

path of remain several stability in numerous the second over last While backlog half, faced the we number a have our we've months. operating for cautious disruptions provides record our given

a exit strength, business appropriately enhancing further position situation crisis in binder through goal market-leading our to Our to position of continues our ultimately in the technology. jetting be, and manage this

of in balance million the increase influence of programs. XX, including for future was federal this the from million, cash items net $X.X March inflows activities generally balanced a June inventories approximated due delivery remained million of through sheet. million, by and net of our and to and cash from as XXXX. loan offerings in as operations $X.X mostly Working stock $X.X common period. Cash, driven COVID-XX Moving for XXXX investment against million of to increased the to million equivalents, restricted financing cash $XX.X cash customers, of $X.X non-cash XX, at Offsetting The aftermarket sales loss, for outflows from widening backlog. capital from $XX.X

an of part additional reduction second of of cash conservation CapEx XXXX, We capital $XXX,XXX previous cash were the for for Our expenditures our to quarter $X million our limited remainder a to $XXX,XXX. to as plan. capital planned anticipate the outlook reflecting

period. as changes for either there increase to end at first party I credit million of operations Our the increased which by be facility the We a capital and $XX.X of related at credit under $XX.X second and and year expenditures the The party that for quarter. compared asset equivalents end discussed and availability revolving the outstanding deployment. the cash was remainder of driven includes related no as the million strategic and will total liquidity, focused facility on revolving to our unrestricted our borrowings just $XX in million a quarter, existing cash cash acquisition company's were

we We and our have through take be that stability these to remarks. we times, manage your And liquidity That to continue to our happy questions. sufficient now for prepared would believe concludes provide to business. uncertain

Operator

Instructions] Please question proceed. Global [Operator from Our Partners. Kinstlinger first with Brian is Alliance

Brian Kinstlinger

they there in say And have Thanks in sit how Great. then typically long XX you Did machines how there backlog? longer the been and backlog many months? six so machines were much. in than do

Doug Zemba

far go the contract at this That's of can this point. varied back hi of is XXXX Doug. XX the Brian, units. total is correct some There as as them age

age. statistic for I on So the specific don't relative you a have

four machine a the goal when is on. and to is out this all completion and timeframe. on last arrangement, shorten can from a the with of from depending year, point associated stretch disruptions we focused type bit we're XXXX, Our to an average that of one the could given the vary It our and where it's about order I longer the but that COVID. tighten next situation typical try geography that at see months to average little perhaps transaction

Brian Kinstlinger

of which you a versus And maybe I indirect know, breakdown -- have do there? in have you if don't direct

Doug Zemba

for I statistics keep them We're really can those businesses. that within not to as operation. We for we related just I that, consolidated product as lines don't run or really machines but get -- number you. to overall backlog do relative separate running the lines product since our

Brian Kinstlinger

then been delivered? in And with able are August? What's early and you share to deliveries already us, maybe July

Doug Zemba

domestic mean of the open you that little No bit. things started of specific tell statistics. the near state, June, for can open We States. bit. work up had things see related primarily of kicking been We're governors we've we've I know look a you And out domestically, really is little in A to of June. to -- imposed when and have work. restrictions within go continued authorities a I a gave some to What United at really lot the government that and off completed bit And installation I I June opportunity thereafter. started in to of But the do if that the you're recently. up Certainly in a Europe, month the the as various domestically, in end to June, up little and Asia, that us say In COVID-XX well. then open here a starting by state process. of month fallback bit one broadly the some

geographies. to specific to out other quarter. I'm month July, in related the any number going give we're detail of conducting third But, So various the or not for work a

Brian Kinstlinger

that? demand. international last How time change that then business restrictions. you'd has for are quarter talked travel you about this that in help mentioned we international out? And the any to has your there adjusting Yes. And Obviously, some since creating

Doug Zemba

April, What certainly we is the little in time of fairly a each that globe other a now and the bit the parts more of been most prepared what where the can you predominantly in geographies, invested period, is footprint, significant as here form is U.S., so traveling move have world operations it COVID but mentioned think remarks, around seeing in When than Obviously have shut global for my I U.S. some most the the trendline our, in from part the for significant weeks. company abroad. our look is, we've Sure. down I May as in effect you're of would Germany luckily several have we we from disruption the freely. Japan, including the at

So the folks biggest jurisdictions. the travel that's States, abroad challenge In some in a customers at a is may be from having cases this technical requirement, that point with contract. foreign associated and United touch

to half to we're look out. So plays the into second that how going see

again, to things Asia to that, up we're and open Beyond Europe. relative starting see

I I call. certainly better into half second So, on about feel a that did heading than where our is lot the last

Brian Kinstlinger

Last Great. the I'll question queue. and in back hop

a growth as it. of Is the recurring impacting clearly you it that well You impacting mentioned have since that's businesses and slow end still given COVID sales the have your as recovery quarter, your release material look marginal business up? lot, and like opened restrictions

Doug Zemba

little a July, been the month been At bit little slow. I it's in would least say a slow. It's of

abnormal and sequential our of you that if about materials, was the March of part. took May in that lower, customers from in need And consumption April saw that you what highlighted a as Therefore of the highlight of and closely a I I ultimately relative a which basically end, There you what and toilet seen quarter, for third in it really is necessarily in again total, macroeconomic even lot trying should recurring. of to was place, see third paper of $XXX,XXX place lot sort saw mentality supply more off our was printers in were they see our for or month first as dropped quarter that materials of think of QX. a whatever to And of think was, discussion, was just weren't pull sort an hoarding we you to matches because stabilized that represented we wasn't typically next $XXX,XXX then materials. most QX purchasing saw running drop in of the abnormal I and would. sort I some to that XQ quarter, but second. at in the a $XXX,XXX which what hard looked think We've quarter, to the the second was restrictions factors the

Operator

Riley. question Please Out is proceed. next from Sarkis with B. Sherbetchyan

Sarkis Sherbetchyan

and details you're kind John, you at in sense prepared you market? produce some request touch if in to this regarding talked seeing of inbound a that of can remarks just on products give scale. kind your end-use what more activity even to Maybe about interest for us

John Hartner

Sure. phenomenon. And it's a global

chains a good a change we're regarding number ensure into are scale potential of Italy Those or we overnight. is bringing future whether reassure their Many years and engagements, working sign to to contracts COVID-XX them engaging future where uncertainty over And the build or talk tension, parts, that back on Germany happening the I this with that is with it its think binder where to parts the have companies or all those consider there things where supply at companies that or Japan. produce customers we those allows parts political process midsize buy of wars that to large type can all to us desire solution. other But whether built demand. talking was seeing customers started unused our U.S. to across and solution to of trade frankly, they and sectors, in with trade, ability there development for with us. volume that's jet been about or add or don't come supply us with they sits -- and so the a be of are major are volume do this,

to decentralized sweet chain. a point we're I a sustainable a more spot positive discussion desire deliver resilient on and able have quite quite in it's companies. So supply And more be a, really having number more with -- a of to said, that it's to we're as a

Sarkis Sherbetchyan

medical I you're talked kind doing. goods That's helpful. as prepared the surprising that sectors of with. you kind that's consumer the of are Any auto, also of remarks know or in about new involved representative you guys and sector some

John Hartner

is strength in business our uncertain diverse, which quite these Yes, sorts times. a is of economic

of fairly The would I there of say. that I'd is may we can broad -- highlight and range medical such I one broad, produce is to say sector scale. because we are materials have it So a one up at getting a large of part at our supply seeing that's kind we're home. not least in business from other been closer cropped customers geographies, the have those past, at gotten but may who supplies looking

thing So say That's the a but demand. might as pop these times, it's uncertain I diverse. medical. That's yes, only need up in you be broadly, our that might one good

Sarkis Sherbetchyan

Doug, And one for Got here. it.

on it an it Or side $X line? Is Can the understand from? you mentioned OpEx combination remaining additional where million, Is for You SG&A the maybe R&D? predominantly $X XXXX. both? is million estimated a it comes that us of help

Doug Zemba

G&A for of the plans. terminations remainder we our the other year benefit programs furloughs or for some March and had our combination year costs on play variable permanent April. out abroad, original that in associated as fixed that as both It's of remaining well all base stems and we in fixed overall remainder of that took that reduction remaining and against we would the and our the action the of It's we've see see throughout U.S. from The R&D. a the actually it would the the really with overhead cost areas, three

Sarkis Sherbetchyan

about if And of comments the kind around we stability. think

half there's of here second looks to results of quarter? sequential financial You kind lot year we the the the out you kind in an the Or of year? closing show saw do improving like think back think a what opportunity

Doug Zemba

would to our individually, QX we just uncertainties given side. system stretch QX bit and from of think any associated there's think the specific I on I a trough. is color give a of of perspective, sort But on the particularly see some QX the

comfort to the side. related level related times revenue commented think the our several on we've I stability to recurring

restrictions million the that side. us think I again of half. second point, backlog look QX to And me gives the But of other lot system contingency as some backdrop likely place of associated excuse sure $XX.X that you are deliver pervasive at operate. a again in COVID-XX. trough travel And again, in that the making that -- A restrictions to us the has don't lot impacts with machines. more of, these become it broader the in driving for opportunity in of to market the the that of and

Operator

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

Jed Dorsheimer

lot how in are but is is of read I guess mine your and answered a that travel in. I just fact digging is A are the least you limitations, on at COVID describing business. really pinned terms from

missing how really COVID about is should to monitoring consumables So, we ability think machines. I Am something? the your deliver both and additional

John Hartner

the the other chains we and development about delivering mentioned recurring on customers long-term, What ahead which step continued jetting reconfiguring that short-term revenue I to the contracts, is will engineering quarters, end-use relevant in chains future. quarters But supply to type John, to supply of the allow to being recurring and Good developed point Luckily I back here. go say I growing the in to parts and of think markets. closer break only their I'd contract see and technology reshore if backlog binder things reconfigure that strong XD see we in grow few the revenue certainly in that's like is morning true, services to something we've Jed. have. we've printing to

in So, some as potential mentioned to see there's I think comments, grow I long-term faster. my our even markets

new crisis. how excited managing and products so that's this so, our we're about And we're why through actually

Jed Dorsheimer

that terms in things to through you asking a just have maybe of that's navigating what those I'm backlog by, based choppy there with I just of help the for you're I old in waters. you saying into cancellations, started terms want if was got but of the have guess, in backlog. seeing any to other cancellation nine just was did wondering provisions? you've question, the know Doug address. of that eight over with, terms months of what order these in work around customers to months And be I on but if And No. my might solution, old, could respect these some dig do risk minute backlog I only found, of

Doug Zemba

is address Sure, that. happy I'm Jed. Doug. to This

I on is is simply one termination pretty most that, When I are low. of back So, some few that say sided contracts you a I protected out cancellations of our these respect to back where a general product. the deposit. regard. in clauses Number before have would the be with that well pretty contracts into generally we at factors: look XXXX. reason the the risk We're systems they we one, them require of while in The say may And quite that age, deliver don't can dated significant

are or of get that A customer operating. cycle know even a be that's they're they're when For their orders often example, oftentimes, I perhaps and making clean we buying need based facility additive, to do them business how that expects equipment and to an lot investment of advance. some an room in well of sounds like installation. And custom facility in be to a of rearranged. arrangements to And the developed sort placed receive but their on do in to an advance nuance just strange, advance which requires

typical bulk the that sitting have your or draw at million a of when point. And goods to in sitting at a there's its finished that over over. or waiting been you listed continue at And as working the look help most of stuff The age lot through physically crisis. when of and So actually that's the that's in can profit, that fair support relative uncommon A at inventories reality the process company's there you age contracts. remotely, machine site our that's we in a sheet, turned the be see balance large backlog. we The $X of facility to the can amount is end to is customer period. this are current it's sitting the diligently some on that this on customers. not we've is see you the distance value them The up

lot likely that not again, back be anyone don't reasons. newer need us a be and respects we've or that cancelled of in had So that's out for see the conditions. being say to other to macro to stuff may because I of financial the come some delayed XXXX. they But just

Jed Dorsheimer

That's a distinction. important for out. thanks And that pointing really

have least terms of of the $XX that on reduces your you do perspective, out certainly, issue at risk million acceptance. recognition So it is from final would my there. in that a Because It's just number revenue a grounded?

Doug Zemba

do are don't for come is and finished some way we delivered or further. specific to and to would generally you. that of I this you'd the to the means hinge built that spot certainly again, Yes, is I inventory, a back you number research in But our off been like can give either it's again machine I have a to of if delivery want that I goods accounting we've per customer which that completed spec. stage discuss

such of on really hold that just out margins our timing getting the in the considering the value value that unless unit believe profit our door. often aggregate that's much facilities pretty in can historical indicator finished Most you there don’t goods machines, delay an the we there's – and slight doesn't gives of field. out a you So very

So most at customer in or a transit sitting is that site. of

Jed Dorsheimer

we And versus would I legacy versus out sort similar if offline, I then and last -- if in this what's what's along parse of -- queue. consider but line, can What maybe be kind of question, -- you take type we interested when this on guess ground do where might it's longer, you because delay. of your I'm backlog think you Is be taking Because can is ability you to your going product, certain convert opportunity over? at you guys? that there a with the an percentage for look which that leading-edge to question you upsell

Doug Zemba

Yes, with a reasonable look when have representative offerings. the I under what the mean we say our backlog I of currently, majority confidence currently that contract vast I of is new at would

the the started backlog certainly 'XX including much or have sand the are most turned this are a side. that machines the 'XX at end most offering legacy introduced with we've the pretty been for Our some we exhausted 'XX metal and models we've legacy on Pro side, there there. some now the delivering the offerings, and which more part, pretty part is Pro on out of for examples fresh that few XX and that But at refurbish within maybe point. There that sold the backlog over of between just the

Operator

from Our [indiscernible] is next question Investment proceed. Management. Please

Unidentified Analyst

Could be, this it. they're long-term perhaps a give automotive EV this? and on the be more, long-term not you the third of the for you what initial it's you might deal potential question more just what I little of the comment a in a you be bit a one and of potential? for about might be And if and possibly XXXPro? anything involved you might shot would would kind be indication little of be have maybe development a some could is But talk would be industry? doing for assume just contract contracts the Another U.S. Department me XX commitments possible see testing what that Defense the

Doug Zemba

Sure.

to of try those. I'll all three Okay. get

be the talked the government really Stepping just we about range The and great part quarter a has of million. the and ago, first a that, approach to projects et a that focused on contracts. been agencies, a contracts. is DOD, Ralph our one some in in a mentioned had a government supplier back, jetting contracted We've binder about that I've of probably NASA, those $X.X for with we whatever commentary year one specific team And on of opportunity that, whether on DOE, put cetera. team to

to be actually this to work XX them going They R&D They even afterwards. awarded, when the but part backlog. these potentially or them, is run have the gestation a think some most type and, included long machines stage contracts say not actually contracts. quarters. I quarters let's of certainly those run are just of in period early production contracted with four mean, machines I And what, their there's tend between in to

our So, it's recurring within revenue stream. categorized

potential. lot see we a of So,

talking this call. future. first about But more really is time we're going the in we're I think be to this the about quarterly it, highlighting talking in our

more is that that So, came of there an leg and as from future. see we our where impact

question love on the adoption suppliers So, we're I XD right? of the prototype issue for mean, was one the the is not the said rapid is with except automotive therefore things the automotive, seeing most in And Secondly, printing. printing had cost. space. XD the projects, I automotive question, had next they binder jet, The think had they

However, their now choice the choice. high-volume binder as product potential of technology jetting production been has of accepted

multiple come with those names certifications these into ensure brand up across going their so working with customers and to products And are the workflows, future us the are to automotive materials of products vehicles.

vehicles who primarily clear, with will launched and in platforms customers to XXXX. Just be talking about will launched we're are that be be working

whenever us short in need us I space. is also So of would critical you this vehicles for volumes. configurations long-term is lightweighting vehicles that's, printing. And help very term binder type that's And EV or include say boost vehicles EV to jetting not to hybrid that a when when come to come those you important Certainly boost. that for a is it type hybrid some but allow XD and you can to

Unidentified Analyst

XXX. the initial the And third is the for you. question thank fee used commitment XX what was Okay, were

Doug Zemba

across spaces different example. commitments that is right So, or have are now. we a four But automotive the perfect three

a So for the them. is higher looking nice metal platforms thing versatile, volume, very decentralized for anyone opportunity parts but for production are is great our XXX is

markets. across of So end all it going is our

that the ones mentioned. So we've already

platform. schedule excited about So we're we're with this it. on Again, very

But the are year. sometime recognize this end will in XXXX. towards not We ship revenue planning of on this until we to

Operator

would have conference to We answer and session. end our the the for I closing reached remarks. over turn to back of question John like

John Hartner

for ExOne. we spending you updating quarter. you time All the thank for and today right, again Thank and look you next very with to in your everyone. We us much forward for Goodbye. time the continued interest

Operator

you. does Thank today's conclude conference. This

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